Textile Mill Seeks Revival as Residential Area
Narva Gate OÜ, property managers for the busted Kreenholm textile mill in the border town of Narva, plan to develop a whole new city block consisting of high-end apartments and shopping malls to attract wealthy Russian citizens.
"We can see that textile industry is no longer as sustainable in Europe as it used to be," Narva Gate CEO Jaanus Mikk told Postimees, explaining the company's plans to divide the factory's 30 hectare property into plots and breathe new life into the currently abandoned industrial area.
The ambitious project envisions the creation of a new urban focal point, comprising condominiums, entertainment and culture venues, a science park and shopping malls. The plan entails construction of 70,000 square meters of residential space - more that a thousand new apartments.
Kreenholm, which had 13,000 employees in its heyday, filed for bankruptcy in November 2010. The removable assets were purchased by Eurotekstiil, a textile company owned by Swedish-Russian investors, after several unsuccessful auction attempts which failed due to lack of bidders. Kreenholm had debts totaling 9.5 million euros when it filed for bankruptcy.