Energy industry layoffs more severe than predicted ({{commentsTotal}})


Viru Keemia Grupp (VKG) said it will make more than the initially announced 200 people redundant due to low oil prices and the high price of oil shale rock.

The company said in December it will lay off around 200 people as the price of oil has halved since summer and the oil shale rock which VKG buys from state-owned Eesti Energia has become too expensive, Põhjarannik reported.

VKG sacked 76 people in December, temporarily closing two shale oil plants.

Priit Rohumaa, the CEO, said the company must press ahead with cost-cutting measures as oil prices keep falling. “It is clear now that we will send hundreds of people home.”

As late as mid-November, VKG was petitioning the government to increase its annual mining quotas from 2.7 million tons to 4.3 million and said it is reconsidering plans to build a shale oil refinery.

Editor: J.M. Laats

+{{cc.replyToName}} {{cc.body}}
No comments yet.
Logged in as {{user.alias}}. Log out
Login failed

Register user/reset password

Name needs to be fewer than 32 characters long
Comment needs to be fewer than 600 characters long

Independence Day: Estonia’s way into the future isn’t a race

There is a lack of connection between the Estonian state, and the people who live here. While it expects a lot of the state, Estonian society doesn’t seem ready to contribute, writes Viktor Trasberg.

Lotman: Security academy would be crucial Estonian identity point in Narva

In an opinion piece published by Eesti Päevaleht, Tallinn University professor Mihhail Lotman found it important to overcome the mental barrier separating Ida-Viru County from the rest of Estonia.