Almost 50 people will be made redundant in Rapla County after Bong Eesti, an envelope and packaging manufacturer, announced it will close next month. The company was one of the largest employers in the area.
On January 14, Bong Eesti announced it was laying off 48 people and the ceasing of operations, ETV's evening news show "Aktuaalne kaamera" reported on Friday.
The company was based in Kohila industrial area and was one of the largest employers in the area.
Member of the Management Board of Bong Estonia Krzysztof Kubasiak said: "We have to be optimized in a better way. Our factory in Kohila is a nicely organized factory with very motivated people and we are proud to have worked with them but given the development of the European market, and given the fact that it was not a big factory, we have a problem with the economy of scale."
He said the Estonian branch of the company has been running at a loss for several years. The Bong Group operates in 14 countries and employs 1,400 people.
Factory manager Taavi Tammearu said: "Production will also be transferred to other factories, both in Sweden and Poland. /.../ We've mainly produced goods for the Finnish market and Scandinavia in recent years."
The factory mostly employed local staff and so the closure of the company is significant for the whole of Rapla in terms of job losses.
Herkki Olo, Development Advisor at Kohila Rural Municipality said: "There was definitely a lot of income generated, just like any business that creates jobs and where the tax money also comes to the state it also comes to the municipality. In terms of exact numbers I don't know at the moment, but the number of employees here was still quite high and it was among the larger companies in Kohila. In that sense, it was still a significant and important company."
Ilvi Pere, head of the Raplamaa Department of the Unemployment Insurance Fund, said the last redundancy involving 50 people in Rapla County at once was several years ago.
"As such, the situation in Rapla County is one where you are more likely to get a job. I saw that today in Kohila, where Bong Estonia operates, there are quite a few similar jobs that the employees at Bong Estonia did so it's worth looking around," she said.
Editor: Helen Wright