Internal restructuring
Eesti; Lääne-Eesti;
Location of affected unit(s)
Pärnu (Lääne-Eesti)
Manufacture Of Material For Textiles, Apparel, Leather And Related Products
Manufacture Of Textiles
13.2 - Weaving of textiles

126 jobs
Number of planned job losses
Job loss
Announcement Date
3 October 2006
Employment effect (start)
6 November 2006
Foreseen end date
13 November 2006


Pärnu Linavabrik produces linen textiles and linen threads. The company, which was founded in 1919, is currently the second biggest employer of Pärnu. In the years of newly independent Estonia it declared bankruptcy once. Since 1997 Pärnu Linavabrik has been owned by Irish W.F.B. Baird & Co. In 2005 the company moved its production into new facilities to improve the working conditions. There were made other investments as well. The entire production of the company is exported.

In November 2006 Pärnu Linavabrik announced its intention to dismiss 126 out of 523 employees. It would be the largest workforce reduction in Estonia in 2006. According to the latest information, Pärnu Linavabrik will change the profile of its products because of rising production costs in Estonia. At the same time, the output will decrease. The enterprise hopes to increase its competitiveness in the coming years.

Estonian Unemployment Insurance Fund is not very anxious about the case because the bankruptcy of Maseko in summer 2006 showed that there are enough jobs available in Pärnu.


  • 3 November 2006: Aripaev
  • 3 November 2006: Postimees
  • 3 November 2006: Eesti Päevaleht
  • 9 June 2005: Aripaev


Eurofound (2006), Pärnu Linavabrik, Internal restructuring in Estonia, factsheet number 64316, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/64316.