Furniture producer Standard is temporarily and partly halting production, citing extremely high energy and input prices, due to which demand on foreign markets has decreased at prices suitable for sustainable production.
"We have begun layoff negotiations with our employees and will be closing the plant in Mustamäe," said Enn Veskimägi, a member of the company's supervisory board.
"The economic downturn can be is having an acute impact on the furniture industry, which is why we are doing everything we can to survive this time and adapt the company for new business opportunities," he added.
"The situation worldwide and in the furniture industry is so unpredictable right now that the partial suspension of production and restructuring of the business is a crucial and the only possible step [we can take] for a better future," Veskimägi explained.
He highlighted that Standard is a company that has operated for 78 years and survived several crises.
He added that the company will still be completing all of its existing major interior design projects and fulfilling existing sales contracts and other obligations.
Based on Estonian capital, Standard is one of the leading suppliers in the Baltics of office and hotel interior design solutions. More than 70 percent of company sales are exported to the Baltics, Scandinavia, Western Europe and beyond.
Editor: Aili Vahtla