Citing a continuous significant decline in global oil prices, the northeast Estonia based shale oil producer Viru Keemia Grupp (VKG) announced on Friday it will make approximately 500 employees redundant.
The management board of VKG decided on Friday to conserve the oil plants using Kiviter technology. Production of shale oil will continue at three oil shale processing plants using Petroter technology for which oil shale is mined at VKG's own Ojamaa mine, VKG said.
Estonia's Minister of Economic Affairs and Infrastructure Kristen Michal headed to East-Viru county on Friday to meet with representatives of the shale oil producer.
"The minister just departed for East-Viru county to meet with representatives of VKG and discuss the situation in the region," Rasmus Ruuda, spokesman for the Ministry of Economic Affairs and Communications, told BNS.
After the layoffs VKG will employ a workforce of approximately 1,500.