VKG is restarting two mothballed factories based on the Kiviter technology
Viru Keemia Grupp (VKG) is restarting two shale oil factories (the 4th and the 5th gas generator (retorting) stations based on the Kiviter technology, that were removed from operation since the beginning of this year due to record-low crude oil prices. It is about 350 people who will be invited back to work as the workforce of the Group.
Mr. Ahti Asmann, the Chairman of the Board of Viru Keemia Grupp: “The decision to restart the mothballed factories is a well-thought one, it has been based on the financial estimations carried out in the Group, and on the real steps demonstrated by the government towards creating a flexible taxation system that will account for changes in crude oil prices in the world market. We hope that the meaningful dialog between the companies of our industrial sector and the government will continue and result in establishing a new efficient taxation system that will facilitate the support of Estonian shale oil competitiveness in the world market and in the long term will secure an income stream of tax revenues for the state“.
„The ground for some optimism on planning the commercial activity is an ongoing process of slow improvement in the global fuel market. Restarting of the mothballed factories will have a positive effect on the personnel capacity in the Group that will be increased by about 350 people. First of all, we will offer the jobs to our former employees, for the moment preliminary arrangements have been attained with a lot of them“, – Mr. Asmann added.
Preliminary works required for putting the factories back into operation and a thorough check of all technological systems have already started. The factories are planned to attain their stable full capacity by the beginning of September. In case of necessity, vacant workplaces will be filled in the course of an open contest, with the information thereof being displayed on the Group’s official website.
VKG is the second-largest shale oil producer in the world. The annual contribution made by the Group into the state budget is approximately as large as 35 million Euros, more than one third of which are various fees for the use of natural resources. The Group owns an oil shale mine, oil shale processing plants, electric power station, as well as electric power – and heat- distributing works.