Estonian Cell, a pulp mill located in Kunda, faced a challenging year in 2023, reporting a net loss of €23 million due to a sharp decline in international sales prices and persistently high input costs in Estonia. In response to these adverse conditions, the company implemented drastic measures last year, including renegotiating procurement contracts, temporarily halting factory operations and as a last resort, laying off nearly 10 percent of its workforce, according to a statement by Siiri Lahe, the head of Estonian Cell.

As one of Estonia's most energy-intensive companies, maintaining competitiveness in the global market is extremely challenging given the significantly higher costs of key inputs such as energy and wood in Estonia. The company's leadership also highlighted Estonia's high energy taxes as a challenge to competitiveness.

"For instance, Estonian Cell pays three to four million euros more annually in renewable energy charges and network fees than similar large industries in Scandinavia or other European countries," said Lahe. "This could be alleviated by implementing the tax caps recommended by the European Union."

Last autumn, Postimees reported that Heinzel, the owner of Estonian Cell, had given the company's management until the end of the year to turn things around. The article did not specify what would happen if this was not achieved.

"The owner is concerned about the sustainability and competitiveness of the local business environment compared to other EU countries," said Rain Pärn, a board member of Estonian Cell, at the time. The Heinzel family has so far invested boldly in Estonia, nearly €200 million, and is prepared to continue doing so, but this requires confidence in the local business environment, he added.

In 2022, Estonian Cell reported a net profit of €2.9 million, down from €3.5 million the previous year.

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