New Owner: Kreenholm Bought for Parts (9)

The Kreenholm textile factory in Narva Photo: Postimees/Scanpix
1/9/2012 12:34 PM
Category: Economy

The new Swedish-Russian owner of Kreenholm textile mill's bankruptcy estate says it has no plans to restore the previous operation.

Chairman of the Eurotekstiil board Igor Polestsuk told ERR radio that the equipment was purchased to expand Eurotekstiil's technological capabilities, production and sales.

"We want to adopt use of technologies that Eurotekstiil does currently not possess," he said, calling the resumption of operations on the previous scale "absolutely impossible."

Polestsuk said many of Kreenholm's fittings overlapped or could otherwise not be used by the company.

That also means that there will not major rehiring of the mill's personnel, who were laid off, dealing the Narva area an economic blow.

Kreenholm, which had 13,000 employees in its heyday, had 500 when it went bankrupt. The Unemployment Inusrance Fund's Narva department head Jelena Kusmina said most of them have not found a new job, and hoped that the factory would be relaunched.

The parties to the transaction, which did not take place at auction due to lack of bidders, did not disclose the price but said that it was over 1.5 million euros. Kreenholm had debts totaling 9.5 million euros when it filed for bankruptcy in November 2010.

Kristopher Rikken

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