Major plastic producer near bankruptcy

18.02.2013, 12:11

The Estonian plant of Norfolier Baltic, subsidiary of Norwegian manufacturing giant Norfolier Group, is struggling to pay its 70 employees wages and has sent them for two weeks on collective leave, writes Äripäev.

The company’s employees told Äripäev that the company has not paid wages almost for six months, it has tax arrears and supplier payables. “At the same time no employment contracts have been terminated nor the bankruptcy proceedings launched,” said the employees.

It is claimed that one of the largest creditors of Norfolier is transport company Itella Logistics. The company’s CEO Meelike Paalberg said that they have held negotiations with representative sof Norfolier and that the company was owing money also to other partners.

Tens of employees of Norfolier Baltic have already filed an application to the labour dispute committee, claiming overdue wages, contractual benefits and overtime fee, according to Evelin Kivimaa from the labour dispute committee.

Norfolier Baltic was founded in 2004 and produced polyethylene film and other plastic products, mainly plastic bags.