Last year, Estonian Cell remained at a loss despite record levels of production and outstanding energy savings
Due to the market situation affected by Covid-19 and low sales prices, the sales turnover decreased by almost 13% or EUR 10.7 million to EUR 69.6 million in 2020.
“In 2020, like many other companies exposed to international trade Estonian Cell was also impacted by economic turbulence caused by COVID-19,” commented board member Siiri Lahe. The company was specifically affected by the decline in demand for graphic papers as a result of the global lockdown. The reduction in sales revenue caused also considerable drop in results, and the net loss totalled EUR 9.3 million euro in 2020.
Outstanding energy saving and record level production
Estonian Cell improved its environmental performance once again in 2020, harvesting the fruits of its recent EUR 20 million investment, which was meant to significantly increase the company’s production output and reduced its ecological footprint.
The record level production volume was 174 thousand tons of aspen mechanical pulp in 2020, increasing by 4% from 167 thousand tons in 2019.
In spite of the challenging environment of 2020, the company created a good basis for further growth with lower energy consumption which equally contributes to both the environmental and the cost performance of the pulp mill. The electricity savings at the current level of production volume were over 10 GWh per annum compared to the level prior the recent EUR 20 million investment which was executed in 2018 to 2019.
Year after year, outstanding environmental performance and energy efficiency led to a high level of recognition when Estonian Cell was awarded “Environmentally Friendly Company of the Year 2019” by the Ministry of the Environment in Estonia in October 2020.
“Even though the times were and still are challenging, in long term Estonian Cell`s growth and development will continue,” confirmed board member Heinz Schnedl. “In 2021, the main focus will be on improving internal processes and competitiveness of the cost base, hand in hand with the targeted increase in production and sales volumes to 185 thousand tons per annum,” added Schnedl.
Estonian Cell’s Kunda aspen pulp mill begun operations in 2006. With 205 MEUR, the facility boasts one of the biggest foreign greenfield investments made in Estonia over the last decade. The company employed 95 people directly as of 31.12.2020 and generates work for around 500 employees within its value chain. The company produces high-quality chemi-thermomechanical aspen pulp that is exported to various countries in Europe and Asia. The company’s activities meet all the requirements of quality, safety, environmental and energy management systems and have received ISO 9001, ISO 14001, ISO 45001, ISO 50001, FSC, and PEFC certificates. The sole owner of Estonian Cell is Heinzel Holding GmbH, a leading producer of market pulp and packaging papers from Austria.
Siiri Lahe, Board Member, AS Estonian Cell
[email protected], phone +372 50 45 153