The Estonian energy group is reorganizing its structure

  • 2023-01-19

The Estonian energy group Alexela is reorganizing and simplifying its structure, changing the names of its management companies and clearly differentiating its fields of activity. This is a step in a longer process aimed at listing Alexela on the stock exchange.

“The purpose of restructuring the group is to simplify and more clearly distinguish the activities of different fields from each other. We will adapt the form to the content, reorganize the structure of our group of companies and make it more understandable,” said Hans Pajoma, board member and CEO of the group's parent company AVH Grupp AS.

The parent company of the group, Alexela Varahalduse AS, will be renamed AVH Grupp AS and will continue to be the parent company of the entire group. Alexela AS will focus on the development of energy business, Bestnet AS on the metal industry and B2G Grupp OÜ (formerly Alexela Group OÜ) on the chemical industry.

“Alexela has grown from a fuel retail company to a versatile energy group and has taken a clear direction towards the development of renewable energy in the form of consistent construction of biomethane as well as solar and wind energy production units. The name and structure changes are one step of many follow-up activities, the further goal of which is to list Alexela's shares on the Nasdaq Tallinn stock exchange,” Pajoma noted.

The AVH Grupp consolidates three major fields: Alexela dealing with energy, Bestnet engaged in the metal industry, and B2G Grupp focusing on oil shale chemistry with its largest company being Kiviõli Keemiatööstus. Businesses belonging to the AVH Grupp employ more than 1,200 people. As a long-term supporter of culture, sports and charity, AVH Grupp has been awarded the prestigious Friend of Culture title on several occasions. 

Alexela is an Estonian green innovator that develops a sustainable network of service stations through the creation of biomethane, LNG, electricity and, in the near future, hydrogen filling up facilities. Alexela produces biomethane based on circular economy principles and builds solar and wind farms. In addition, the company together with its partners operates the LNG terminal in Hamina, Finland, and develops a renewable energy hydropower storage facility in Paldiski called Energiasalv. Alexela offers its customers a wide range of everyday energy products, such as electricity, natural gas, cylinder and tank gas, as well as car fuels in more than 100 service stations across Estonia. In addition, the company has 39 cafe-shops. 

The scope of companies belonging to Bestnet includes a wide range of surface treatment methods for metal structures. Bestnet also produces light trailers represented on the Estonian market under the brand Tiki. Most of the group's output is exported. 

The largest company of the B2G Grupp is Kiviõli Keemiatööstus with its 100-year history, the focus of which has been on oil shale mining and valorization while being an important employer in Ida-Virumaa. The company's ambition is to become a chemical company operating on circular economy principles by adding value to oil shale with innovative technologies.