Fazer to close Tallinn plant, lay off 95

Finnish food group Fazer announced yesterday it will close its plant in Tallinn in April, laying off 95 workers, reported Äripäev.

Fazer said the move is part of its strategy to consolidate its Baltic manufacturing operations to Latvia and Lithuania.

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Business sector profit same as 2Q last year

According to Statistics Estonia, in the 2nd quarter of 2014, the total profit of the business sector was 836 million euros, remaining the same compared to the 2nd quarter a year ago.

The biggest contribution to the growth in profit was made by agriculture, manufacture, transportation and storage, and real estate activities. The growth in the profit of the business sector was negatively influenced mostly by construction and wholesale activities. The profit of manufacturing, which holds the largest share in the total profit of the business sector, increased 9%, mainly due to the increase in profits in the manufacture of food and in the export-oriented manufacture of wood and metal products.

In the 2nd quarter of 2014, enterprises sold goods and services for 12.9 billion euros, which was 1% more than in the same period a year ago. The turnover of trade and manufacturing enterprises, which have the biggest share in the total turnover of the business sector, remained on the level of the previous year. The biggest increase occurred in the turnover of enterprises specialising in the professional, scientific and technical activities.

Compared to the 2nd quarter of 2013, the total costs of enterprises increased also 1%. Personnel expenses increased 7%. The number of persons employed and the number of hours worked increased 1% and 4%, respectively. The labour productivity of the business sector on the basis of the value added amounted to an average of 5,700 euros per person employed in a quarter and was 3% higher than in the 2nd quarter of 2013.

The investment activity of enterprises continues to decrease. In the 2nd quarter of 2014, enterprises invested 529 million euros, which was 17% less than in the same period of the previous year. The largest investments were made mainly in buildings, equipment and machinery. The main investors were agricultural, manufacturing and trade enterprises with more than a half of the total investments of enterprises. Compared to the 2nd quarter of 2013, investments in land and in the acquisition of buildings increased. Other investments decreased, with investments in equipment and machinery declining the most.

Total profit of the business sector, 1st quarter 2010 – 2nd quarter 2014

Diagram: Total profit of the business sector, 1st quarter 2010 – 2nd quarter 2014

 

Source: Statistics Estonia

Solaris cinema likely to be sold to Apollo

in a space-themed acquisition of a central Tallinn property, Solaris, one of the two multiplex cinemas in the city center, is likely to be bought by a subsidiary of the Apollo media group after a deal was inked late last week.

Approval from the Competitiion Authority is needed for the would-be sale to Apollo Kinod, which also operates a cinema in Pärnu.

The multiplex in the Solaris shopping mall was a Cinamon movie theater but was unloaded soon after the mall opened.

Last year, the current owner, Solaris Property Partners, then tried to shop the business to Forum, which operates the other city center multiplex in Coca-Cola Plaza, but antitrust regulators blocked the sale.

Source: ERR News

PKC Group to close its plant in Haapsalu

International manufacturer of wire harnesses PKC Group that has two plants in Estonia in Keila and Haapsalu announced that it is going to close down its plant in Haapsalu by the end of this year.

The company said that its objective is to maximise the production capacity in Europe in modern competitive factories in Serbia and Lithuania.

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Oleg Ossinovski is the richest person in Estonia

The business daily Äripäev has named transport mogul Oleg Ossinovski as the richest person in Estonia, in its annual list of the 500 richest people in Estonia.

Ossinovski, whose son Jevgeni Ossinovski is a Social Democrat MP and who helped finance the 2011 campaign for the seat, saw his fortunes increase by 75 million euros to 297.9 million, Äripäev said today. Skinest Rail, owned by Ossinovski, had a excellent year, sells and repairs train rolling stock in the Baltics, Ukraine and Russia. Ossinovski also owns Spacecom AS, which leases railroad tanker cars.Oleg Ossinovski

Hillar Teder of food retailer O’Key Group, who had claimed the spot in the previous two years, is now second, with the daily lopping 55 million euros off its estimate of his worth to take him to a mere 295 million euros.

The rest of the top 10 were as follows:

3. Priit Piilmann, major shareholder in Viru Keemia Group – 211.2 million euros (132 million in 2012)

4. Armin Karu, major shareholder of Olympic Entertainment Group – 161.5 million euros (112.5 million)
5. Toomas Annus, chairman and major shareholder of Merko real estate developer – 143.1 million euros (133.8 million)
6. Margus Kangro, major shareholder in Viru Keemia Group – 132.1 million euros (104.4 million)
7. Fjodor Berman, owner and head of BLRT Group – 119 million euros (182.2 million)
8. Marcel Vichmann, owner of Edelaraudtee and GoBus – 117.5 million euros (107.1 million)
9. Sonny Aswani, managing director of the Tolaram Group in Estonia – 117.2 million euros (109.9 million)
10. Roman Stroykov, an industrial wholesaler – 115.1 million euros (89.5 million)

Source: ERR News

Transit company takes 100 mEUR out in dividends

Last year one of Estonia’s biggest transit companies, Vopak E.O.S, took out 100 million euros in dividend, paying 26.6 million euros in tax to the state.

Vopak E.O.S’ last year’s profits fell 30 percent to 34.1 million euros, while revenue decreased 16 percent to 152.3 million euros, Postimees reported today.

Vopak E.O.S., which runs oil terminals throughout the Baltic states, is a joint company registered to two Dutch companies – Investments B.V and Tankmaatshappij Dipping B.V. Both own 50 percent of the company. Last year the joint company had profits of 258 million euros.

Last year, similarly to Vopar E.O.S, the Finnish-Swedish telecommunications company, TeliaSonera, took out dividends form EMT and Elion, amounting to 41 million euros and paid 10.9 million euros in income tax.

Source: ERR News

The profit of the business sector increased in Q1

According to Statistics Estonia, in the 1st quarter of 2014, the total profit of the business sector was 705 million euros, which was 10% more than in the same period a year ago.

Compared to the 1st quarter of 2013, total profit increased in almost all economic activities.

The biggest contribution to the growth in profit was made by information and communication, agriculture and professional, scientific and technical activities. The growth in the profit of the business sector was negatively influenced mostly by construction, transportation and storage and real estate activities. The profit of manufacturing, which holds the largest share in the total profit of the business sector, increased 2%, mainly due to the increase in profits in the manufacture of food and in the export-oriented manufacture of wood and metal products.

In the 1st quarter of 2014, enterprises sold goods and services for 11.8 billion euros, which was 2% less than in the same period a year ago. The turnover of trade and manufacturing enterprises, which have the biggest share in the total turnover of the business sector, increased 1%. The biggest increase (by a third) occurred in the turnover of enterprises specialising in the repair of computers and personal and household goods.

Compared to the 1st quarter of 2013, the total costs of enterprises decreased 3%. Personnel expenses increased 8%. The number of persons employed and the number of hours worked increased 1% and 4%, respectively. The labour productivity of the business sector on the basis of the value added amounted to an average of 5,200 euros per person employed in a quarter and was 7% higher than in the 1st quarter of 2013.

In the 1st quarter of 2014, enterprises invested 537 million euros, which was 3% more than in the same period the year before. The largest investments were made mainly in equipment and machinery, vehicles and buildings. The main investors were energy, transportation and storage and agricultural enterprises with more than a half of the total investments of enterprises. Compared to the 1st quarter of 2013, investments in equipment and machinery, in vehicles and in the acquisition of buildings increased. Other investments decreased, with investments in land declining the most.

Total profit of the business sector, 1st quarter 2010 – 1st quarter 2014

Diagram: Total profit of the business sector, 1st quarter 2010 – 1st quarter 2014

 

Source: Statistics Estonia

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