Economy

A major factory in Estonia has been shut down due to the high electricity prices

 

Estonian television and radio portal ERR. reported that rising electricity prices in Estonia have caused the closure of a major pulp plant.

Estonian Cell’s large pulp plant in the Estonian city of Kunda has been unable to continue operating, despite fixed prices for gas and electricity contracts. The company’s expenses have continued to rise by 1.5 million euros and over the past few months have exceeded the spending budget by 5 million euros.

“Therefore, we are looking for solutions to how to deal with this crisis,” the company said in its appeal. We do not have the ability to pass on the increase in domestic prices for raw materials and resources to consumers on different continents.

Estonian Cell is proposing de-pooling renewable energy until the energy price crisis in Europe is over. It is also proposed to reduce the fee for renewable energy by 75% in accordance with the recommendations of the European Commission.

Estonian Cell’s pulp plant was opened in 2006. Investments in the company exceed 200 million euros, and all products are exported, the amount of which is more than 80 million euros annually. Three quarters of the pulp produced goes to Europe, and the rest goes to Asia.

In early October, some energy-intensive companies in Europe were forced to reduce or even completely stop production due to the persistent rise in gas prices.

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