Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
The Estonian textiles production company Kreenholmi Valduse AS has announced the reduction of further 300 jobs in the company in August 2009. The company is owned by the Swedish Borås Wäfveri. Kreenholmi Valduse will keep on working with about 500 employees.
Kreenholmi Valduse has undertaken extensive job cuts over the last four-year period at the plant in Narva, the Nort-East region of Estonia. This will be the fifth large wave of redundancy at the plant during that period. Prior to this extensive restructuring, the company employed almost 4,000 employees.
Mr Kenneth Uddh, the Director General of the plant said that the redundancies are caused by the reducing turnover of the company and the current difficult situation in the Baltic markets. According to Mr Uddh, the plant is currently operating with loss and the markets have fallen by 11% compared to the previous year. The redundancies will be a way to adapt to the economic recession. The company decided to keep on working with manufacturing of textile products needed in private households and different functional products, also manufacture of sun-blinds. Redundancies are affecting all other areas of manufacture, as these are having problems with production volumes. Still, according to Mr Uddh, there will be no closing of entire production units, only some specific activities.
Eurofound (2009), Kreenholmi Valdus, Internal restructuring in Estonia, factsheet number 69423, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/69423.