Due to the continued downturn in the construction market in Estonia and in the most important export countries for the Estonian concrete precast industry, Finland and Sweden, and thus a significantly lower order intake and challenging margin levels, E-Betoonelement OU is temporarily cutting its production capacity. Demand is low especially due to the decline in the residential construction, and there is significant overcapacity in the market.
Harku factory of E-Betoonelement is manufacturing specialized high quality precast concrete walls and facades for the domestic market and for export. In the prevailing market situation, where the demand is too low and also margins are low, it has been decided to cut the production capacity in Harku to ensure the company's ability to secure a strong leading position in the Estonian market also in the future. Cutting the production capacity will unfortunately mean layoffs among both the production workers and within the support functions.
“This is a very sad announcement to make, which means that many employees will have to leave the company. Unstable world situation is having a strong impact on the economy and on the construction industry in Estonia. The demand for concrete wall elements has declined, affecting our order intake significantly, due to the decline in the residential market in Estonia and in the Nordics. These measures are necessary for us to continue to be one of Estonia’s leading supplier of precast concrete products also in the future. Naturally, we will keep all our commitments towards our customers and partners despite the ongoing changes. We also continue to work with our customer relationships and when the market turns, we will be ready to quickly get up to speed, with good profitability, and grow faster than the market”, says Esa Mäki, Managing Director of Consolis Baltics.
Harku factory will complete all of its current orders normally. E-Betoonelement will also continue to serve its customers as usual, offering precast construction system design services and element deliveries in the Estonian market, sourcing the products from the Consolis Group factories in the neighboring countries.
E-Betoonelement OU is part of the international Consolis Group, a leading supplier of precast concrete solutions.
Contact:
Esa Mäki
Managing Director | Consolis Baltic unit
(English and Finnish)
