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BNS - The Danish manufacturer of children's furniture Flexa intends to shift production to Estonia and in connection with this Flexa Eesti plans to increase staff to up to 240.
In the course of restructuring of the Flexa group a plant will be relocated from Denmark to Estonia, board member of the Estonian operation Marianna Paas told BNS on Friday. "This concerns production of furniture for children as before, it's just that the part which used to be produced in Denmark will henceforth be produced in Estonia."
Plans are for the Danish factory to continue working till the beginning of July and for the Estonian unit to fully take over its tasks in late summer. Flexa Eesti that currently employs 210 people plans to hire up to 30 new workers.
Paas said the last two years have been very difficult for the Estonian unit. "We have become considerably more cost-effective, but what we need to achieve in order to continue properly working is turnover," she said.
The company ended last year with loss, she admitted but did not disclose the figures.
Flexa Eesti made a loss of 89.3 million kroons (EUR 5.7 mln) in the business year ended October 2008 after posting a profit of 23.8 million kroons a year earlier.
Flexa Eesti AS is part of the Danish group Flexa Holding A/S.
(EUR 1 = EEK 15.65)
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