Estonian fiberboard manufacturer Nordic Fibreboard informed the stock exchange on Friday about temporarily closing its factory in Püssi at the end of this month, as the impact of the coronavirus has resulted in a substantial loss of orders for the boards being produced at that plant.
It said the Püssi factory, in Lüganuse Parish, specializes in thinner fibreboards, which are sold mainly to customers in southern Europe, the Middle East and Asia. With a resolution adopted on Friday, the supervisory board of Nordic Fibreboard decided to close the Püssi factory for the time being, effective the end of March.
Nordic Fibreboard's second fibreboard factory, located in Parnu, manufactures thicker fibreboards that are sold mainly to customers in the northern part of Europe, and orders from these customers have remained stable to date, the company said.
The output of the factory accounted for approximately 40 percent of Nordic Fibreboard's sales. The factory employs 34 people.
"We will try to transfer some of the remaining orders in the Püssi factory to the Parnu factory; however, the uncertain outlook created by the coronavirus is making it increasingly difficult to predict the future demand situation," the company said.
Editor: Helen Wright