Elcoteq Eesti Hopes for Smooth Takeover
The head of Elcoteq Eesti expects that the failed European electronics giant's Tallinn factory will be sold in the nearest future and will be able to carry on under new owners with minimum disruption.
Jan Kotka, CEO of Elcoteq's Estonian subsidiary Elcoteq Eesti, said he expects that the Tallinn production plant will be sold off by the trustees after the parent company's bankruptcy petition has been processed.
"Of course there is also a worst-case scenario, but the odds are against that because the Tallinn plant earns steady profits and has a strong customer base," Kotka told Postimees.
He said the plant would be worth next to nothing if dismantled and that several prospective buyers have already shown their interest.
On October 6, Elcoteq SE filed for bankruptcy in its country of domicile, Luxembourg, after readjustment failed and the company did not reach an agreement with its creditors.
Elcoteq's Tallinn plant, which produces electronics components and offers product development services, currently employs approximately 250 people.
In 2009, in one of the most talked-about export operations in Estonia, Elcoteq Eesti sold 80 percent of its production capacity to Swedish-based Ericsson. Last year the company moved its remaining production facilities to a newly-built factory on Tallinn's Peterburi maantee.