73% of the manufacturing production is sold on the external market

According to Statistics Estonia, in March 2013, the production of industrial enterprises increased by 7% compared to March of the previous year. The growth in the production was most of all influenced by the manufacturing of electronic products and electricity.

In March the production in manufacturing increased by 5% compared to the same month of the previous year. Among the branches of industry holding larger shares, the production grew also in the manufacture of chemical and metal products, building materials and machinery and equipment. The volume of production fell in the manufacture of food products, electrical equipment and furniture.

In March, 73% of the whole production of manufacturing was sold on the external market. According to unadjusted data, the export sales of the manufacturing production grew 2% compared to March 2012, domestic sales decreased 2%.

In March 2013 compared to February, the seasonally adjusted total industrial production increased 4%, the production in manufacturing grew 2%.

Compared to March 2012, the production of electricity increased by 34% and the production of heat by 15%. The growth of electricity production was mainly caused by the increase in exports compared to March of the previous year.

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Estonia is Europe’s largest pillow and blanket maker

Estonia is Europe’s largest maker of pillow and blankets in per capita terms, Meelis Virkebau, head of the Estonian Clothing and Textile Association, told Äripäev.

„We have several large producers in Estonia. The biggest of them is Wendre that has production in Estonia, Poland and China,” said Virkebau.

Speaking of Wendre, Virkebau said that it has been a long-term supplier of IKEA and is now increasing sales in UK where it has successfully entered several retail chains.

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In 2012 no significant changes occurred in Estonian industry

According to Statistics Estonia, according to preliminary data, in 2012 the production of industrial enterprises remained on the level of the previous year. Export increased, but the sales on the domestic market decreased.

A small growth in the production of manufacturing that took place at the beginning of 2012 compared to the same month of the previous year was replaced with a decline in March, which continued until the end of August. The main reason for the fall in production was the high reference base in the manufacture of electronic products, but also lower external demand had a negative impact. Since September the production in manufacturing grew significantly. The main reason for the growth at the end of the year was the recovery in the production volume in the manufacture of electronic products, in other branches of industry no significant changes occurred. Despite the faster output growth in industrial production at the end of the year, the summary of 2012 remained on the last year’s level.

In the last months of 2012, the production in manufacturing grew mainly due to the increase in exports. More than 70% of the whole production of manufacturing was sold on the external market. Export sales of the manufacturing production grew 3% compared to 2011. The demand on the domestic market was lower – in 2012 domestic sales decreased by 2% compared to the previous year.

In 2012, the production exceeded the volume of the previous year in almost half branches. The growth in the production of manufacturing was positively influenced by the branches holding bigger shares – the manufacturing of electronic products where the production increased 4% compared to 2011 and the manufacturing of wood and food products where the production grew 1% in both branches. The growth in the production of manufacturing was negatively influenced by the fall in the manufacturing of metal products, chemicals, furniture and motor vehicles.

In December 2012, the production of industry increased 7% compared to December 2011; the production of manufacturing grew 6%. In December compared to December 2011, the production of electricity increased 5% and the production of heat 48%.

In December 2012 compared to November, the seasonally adjusted industrial production fell 1%; the production of manufacturing 2% during the month.

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Producer price index in October

According to Statistics Estonia, in October 2012 the producer price index of industrial output changed by -0.1 % compared to September 2012 and by 2.0% compared to October of the previous year.

In October, compared to the previous month, the producer price index was more than average influenced by the decrease in prices in the manufacture of refined petroleum products, and in the manufacture of wood and wood products, as well as by the increase in prices in the manufacture of metal and food products.

Compared to October 2011, the index was more than average influenced by the increase in prices in the manufacture of food products and heat energy and by the decrease in prices of computers and electronic products.

Change in the producer price index of industrial output by economic activity, October 2012

Economic activity according to EMTAK 2008	Sept’12 – Oct’12, %	Oct’11 – Oct’12, %
TOTAL	-0.1	2.0
Manufacturing	-0.1	1.7
Mining	0.0	2.3
Electricity, gas, steam and air conditioning supply	-0.3	4.7
Water supply; sewerage; waste managementand remediation activities	0.0	0.4

In October 2012 the export price index changed by -0.5% compared to September 2012 and by 1.6% compared to October 2011.

In October, compared to the previous month, the prices of electricity, petroleum products, paper and paper products and agricultural products decreased more than average and the prices of metal and peat products and furniture increased more than average.

In October 2012 the import price index changed by -0.2% compared to September 2012 and by 4.3% compared to October 2011.

In October compared to the previous month, the prices of petroleum and textile products decreased more than average and the prices of agricultural, metal and leather products increased more than average.

Source: Statistics Estonia

Main increase in the manufacturing of electronic products

According to Statistics Estonia, in September 2012, the production of industrial enterprises increased by 8% compared to September of the previous year. The growth in the production was most of all influenced by the increase in the manufacturing of electronic products.

A stable small decline compared to the same month of the previous year in which the manufacturing stayed during a half of the year, was replaced with the significant growth in September. In September the increase in manufacturing was 9% compared to September 2011. The main reason for the growth in production was the low reference base in the manufacture of electronic products. A year ago, in September 2011, the growth in the manufacturing of electronic products slowed down sharply, which affected the whole industrial production output. Now, the production volume in this branch has recovered, covering a fifth of the total manufacturing output. In other branches of industry no significant changes occurred in September.

In September, the production exceeded the volume of the same month of the previous year in half of the branches of industry. Among the branches of industry holding larger shares, the production rose in the manufacture of electronic and refined petroleum products by 69% and 60%, respectively. The production fell in the manufacture of wood, food and metal products and electrical equipment.

In September 2012 compared to August, the seasonally adjusted total industrial production as well as the production in manufacturing increased by 2%.

Compared to September 2011, the production of electricity increased by 5% and the production of heat by 10%.

The volume index and trend of production in manufacturing, January 2003 – September 2012 (2005 = 100)

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Industrial pollution will be put into strict frames

The Minister of the Environment Keit Pentus sent a draft for preparation of an opinion with the objective of reducing industrial pollution to the ministries.

The draft of the Industrial Pollution Act specifies the requirements set to companies operating in major fields of industry, in order to reduce and prevent industrial pollution that has a negative impact on human health. The objective is to ensure integral management of the prevention and control of emissions into air, water and soil, waste handling, efficient use of energy and accident prevention.

According to the data of the European Environment Agency, there are 52,000 major industrial companies in Europe, having an essential impact on human health. The agency has estimated that more than 150 billion euro will be necessary in order to repair the health damages caused in such way in the European Union. The Minister of the Environment Keit Pentus explains that there are 256 such major producers in Estonia. “If we transform the data of the European Environment Agency to Estonia, we could say that the impact of the pollution caused by our industrial companies on human health can be measured with 800 million euro. This impact includes, for example, allergies and diseases needing treatment, worsening capacity for work.”

“A direct effect of updating of the requirements related to pollution is that the technical development will bring along gradual improvement of the living environment, a cleaner nature, air and water for the people living near major production companies. This means that the legal side needs to be reinforced,” the Minister of the Environment Keit Pentus explained.

Implementation of IPA will partially increase the workload of officials due to systematic control and additional companies operating on the basis of integrated permit, also increasing the obligations of the entrepreneurs to ensure reduction of pollution emissions and waste generation from major production. In the future, industrial companies also in Estonia must adopt the best possible technology that protects the living and natural environment.

The draft sent for opinion is also paying more attention  to informing the public. “Better access to the environmental data related to the industrial activities and an opportunity to have a word in the starting phase of planning of industrial operations that have an impact on the living environment of the people will undoubtedly enable making decisions that will take better account of all interests in the future,” the Minister of the Environment Keit Pentus added.

Source: Minister of the Environment

Industrial production slowed down in May

According to Statistics Estonia, in May 2012, the production of industrial enterprises decreased by 1% compared to the same month of the previous year. In the manufacturing the decrease was 0.4%.

A small growth which took place at the beginning of 2012 in manufacturing was replaced with a decline in March and April, when the production of manufacturing decreased nearly 5% in both months compared to the same month of the previous year. In May the decrease was 0.4% compared to May of the previous year. The main reason for the decline was the high comparison basis in the manufacturing of electronic products – this effect will last during the 2nd quarter as well. The reduction of demand on the external market also influenced the manufacturing negatively – the export sales decreased 2% compared to May of the previous year. The share of export sales accounted for 70% of the total production of manufacturing in May.

In May, the production did not exceed the volume of the same month of the previous year in half branches of industry. Among the branches of industry holding larger shares, the production in the manufacture of metal products, electronic and chemical products fell by 19%, 4% and 2%, respectively. The production in the manufacture of electrical equipment, wood and food products grew by 18%, 2% and 1%, respectively.

In May 2012 compared to April 2012, the seasonally adjusted total industrial production as well as the production in manufacturing increased by 1%.

Compared to May 2011, the production of electricity decreased by 7% and the production of heat by 8%.

The volume index and trend of production in manufacturing, January 2003 – May 2012 (2005 = 100)

 

Soource: Statistics Estonia

Industrial production in February

According to Statistics Estonia, in February 2012, the production of industrial enterprises increased 1% compared to the same month of the previous year.

In February 2012, the production of manufacturing increased by 2% compared to February of the previous year. Export sales influenced the growth in production the most – 73% of the whole production of manufacturing was sold on the external market. Export sales of the manufacturing production grew 5% compared to February 2011, domestic sales increased 4%.

In February, production exceeded the volume of the same month in the previous year in most branches of industry. Among the branches of industry holding larger shares, production grew in the manufacture of electronic and food products and electrical equipment, by 1%, 6% and 17%, respectively. Production decreased in the manufacture of wood, metal and chemical products.

In February 2012, compared to January 2012, the seasonally adjusted total industrial production increased 1%; in manufacturing, the production did not change significantly.

Compared to February 2011, the production of electricity decreased 3% and the production of heat increased 2%.

The volume index and trend of production in manufacturing, January 2003 – February 2012 (2005 = 100)

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The production of electricity decreased 21pct

According to Statistics Estonia, in January 2012, the production of industrial enterprises decreased 0.5% compared to the same month of the previous year. The slowdown in the growth was caused by the fall in the production of electricity.

Compared to January 2011, the production of electricity decreased 21% and the production of heat fell 7%. The decrease in electricity production was caused by the growth of import from Finland due to the lower price of electricity in Nordic countries.

In January 2012, the production of manufacturing increased by 3% compared to January of the previous year. Export sales influenced the growth in production the most – more than 70% of the whole production of manufacturing was sold on the external market. Export sales of the manufacturing production grew 7% compared to January 2011.

In January, production exceeded the volume of the same month in the previous year in most branches of industry. Among the branches of industry holding larger shares, production grew in the manufacture of wood, food products and electrical equipment, by 11%, 2% and 25% respectively. Production decreased in the manufacture of electronic and metal products and motor vehicles.

In January 2012, compared to December, the seasonally adjusted total industrial production increased 2%; in manufacturing, production grew 4%.

The volume index and trend of production in manufacturing, January 2003 – January 2012 (2005 = 100)

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2011 was successful for Estonian industry

According to Statistics Estonia, in 2011 the production of industrial enterprises grew 18% compared to the previous year. The growth of production was mainly influenced by the external demand, but the domestic demand also increased continually during the year.

The rapid growth in production when the production grew steadily more than 20% compared to the same month of the previous year, continued till August 2011. Since September the growth in manufacturing slowed down considerably. At the end of the year, the main reason for the slowdown was deceleration of the economic growth in the European Union countries, which caused lower demand for the Estonian products, as well as essentially higher comparison basis. In 2011, the production in manufacturing increased 22% compared to previous year and the production of energy decreased 3% due to the decrease of heat production.

The production in manufacturing grew mainly due to the increase in exports. More than 70% of the whole production of manufacturing was sold on the external market. Export sales of the manufacturing production grew more than a third (36%) compared to 2010. The demand on the domestic market was lower – in 2011 domestic sales increased over a tenth (14%) compared to the previous year. However, the growth in the demand on the domestic market was faster than on the external market during the last quarter of 2011. In 2011, the production exceeded the volume of the previous year in most branches. The growth in the production of manufacturing was most influenced by the branches holding bigger shares – manufacturing of electronic products where the production increased by two times compared to 2010, and manufacturing of wood and metal products where the production grew 12% and 16%, respectively. With respect to the branches of manufacturing holding smaller shares, the production increased considerably in the manufacturing of machinery and equipment, electrical equipment, chemicals and motor vehicles.

In December 2011, the production of industry decreased 3% compared to December of the previous year; mainly due to the fall in energy production. In December compared to December 2010, the production of electricity decreased 13% and the production of heat 34%. The production of manufacturing grew 1%.

In December 2011 compared to November, the seasonally adjusted industrial production fell 1%; the production of manufacturing grew 1% during the month.

Volume index trends of production in manufacturing in the European Union, January 2002 – December 2011 (2005 = 100)

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