Manufacturing in brief

  • 2004-09-29
Autoliv, the majority owner of seat-belt manufacturer Norma, said it would transfer its production of safety belts from Sweden to Estonia as of 2006. Lars-Gunnar Skotte, CEO of the Vargarda factory in Sweden, told the AFX news agency that the factory would gradually transfer all its 275 jobs in safety-belt manufacturing to the Baltic country.

"A lot of manual labor is required in the manufacturing of safety belts, while that of airbags is not. Therefore, that sphere will remain in Sweden," he said.

Commenting the news, Norma Board Chairman Peep Siimon said, "It is a surprise to me that Sweden has its transfer plans all made. It has apparently found that the time is now."

If the aforementioned number of jobs is added to Norma, the present 839-strong work force will increase by one-third. Autoliv also has safety-belts manufacturing facilities in Hungary, India, Indonesia, Poland, Romania, South Africa and Thailand. In addition, the company produces airbags and steering-wheel systems for Autoliv.

Elcoteq electronics launched an active recruitment campaign in hopes to find up to 300 workers for its Tallinn facility during the peak winter season. Agnes Hansen, personnel manager, said she could see no major problems in coming up with this number of new employees, though she cited the need to look outside the capital. The company has contacted Kreenholm's Narva factory, where hundreds of people have been laid off this year.

Elcoteq Tallinn director Risto Gaggli estimated that the company could have about 3,500 permanent workers in a year's time, but he's worried about qualified labor. "The number of engineers is too small. Estonian universities could think more about providing engineering education," he said.

Elcoteq has already created 900 new jobs this year.

Estonia's leading paint producer Vivacolor, part of the Nordic concern Tikkurila Paints, said it would close its alkyd-paints plant in Latvia by the end of the year and move its line for producing silicate paints from there to Estonia in an effort to increase efficiency. Vivacolor said it did not plan to hire more workers and expand production premises.

Marketing manager Jaana Parn said the parent company's decision to reorganize production would have a positive effect for Estonia by increasing production activities there. "So far we've been making mostly water-based paints in Estonia, but according to projections next season we'll produce an additional 600,000 liters of silicate paints," Parn said, adding that most silicate paints will be exported to Norway, Sweden, Finland and Poland.

Svedbergs' bathroom ceramics plant will launch operations at the start of next year at the Tanassilma technopark in Saku. The firm, which will employ 120 people, plans to manufacture washbasins, shower basins and toilet bowls. Svedbergs, which is based in Sweden, does not own other plants outside its home country.

Karin Keerdo, member of the board of Svedbergs Estonia AS, said construction would cost 26 million kroons (1.66 million euros), while equipment would cost nearly the same amount. All told, the new facility represents an investment of about 80 million kroons, Keerdo said. The plant is scheduled to be finished in December 2004.

Svedbergs CFO Ola Osterberg said the plant's annual turnover is planned at around 70 million kroons. The firm's main markets have so far been Sweden and other Nordic countries, and the Estonian-made products will likewise be exported there.