Export growth was brought by hard work and favorable times

According to the Statistical Office, the export of goods increased 15 percent in this May over year. The most exported items were electrical equipment, timber and wooden products and mineral products.

Estonia’s goods are mainly in demand in neighboring countries. The largest share was exported to Finland in May (16 percent of total export), followed by Sweden (14 percent) and Latvia (nine percent).

This was asserted by Lembit Lump, supervisory board chairman of the company Kodumajad; he modestly said that they had been doing well. “Regarding last year’s sales revenue compared with that of the year before last, the increase has been 16 or even 17 percent. There has been increase, sure enough.”

The main business of Kodumajad is the designing and construction of high quality timber framework buildings using factory-produced elements. The enterprise is primarily export-oriented. They exported 24 million euros worth of timber and timber products this May.

Lump cites as the reasons of growth the firm’s hard work and the active markets. “You just have to take advantage of the situation, there is no miracle”, he said. Kodumajad exported the most to Norway and Sweden both last year and this year.

Although these two countries have been the main markets of the wooden house manufacturer for a long time, the firm has ambition to reach elsewhere. “But you cannot do everything at once. We are presently making efforts to increase our share of the Swedish market. Once we achieve our targets there, we may look elsewhere to hedge our bets, maybe Finland or Denmark”, Lump said.

Konesko, a manufacturer of electric motors, fuse boxes and other electrical equipment, also reported export growth. Unlike Kodumajad, the growth of Konesko is not the result of efficient sales work but higher demand of contract partners for their products.

“Our export growth remains somewhere at ten percent. We hardly sell anything at home, 90 percent is exported”, said Mihkel Puumets, head of Konesko’s motor plant. More than 60 percent of Konesko’s output goes to Finland, but it also exports to other countries all over the world, for example China, the USA, Germany and Italy.

According to the Statistical Office, the export of electrical equipment to Germany has increased especially. For example, 43 million euros worth of communication equipment was exported, yet the sum is somewhat lower than in May 2016.

The state-owned energy company Eesti Energia handles the sale of the category of export products, which increased the most in May – mineral products. The company says that the market situation is favorable at present.

Andri Avila, board member of the firm, said that the oil shale industry has been working almost at maximum capacity since last July. “The prices in the energy market have favored production and our oil production facilities and power stations are at full capacity”, he said.

Although Eesti Energia cannot reveal precise information before the end of the month, one can claim, comparing the first quarter of 2017 with that of 2016 that both electricity and oil production have significantly increased.

According to the Statistical Office, the most mineral products (including motor fuel) were exported to Canada and Saudi Arabia (including shale oil). Mineral products worth 53 million euros were exported from Estonia in May.

The share of Estonian-produced goods amounted to 72 percent of total export in May. The export of Estonian-origin goods increased 12 percent in May and the export of goods imported to Estonia from other countries, 25 percent. The growth of export of Estonian-origin goods was influenced the most by the increasing export of mineral products (shale oil for heating, electric energy), timber and timber products (including coniferous timber, wooden pellets), agricultural products and food (including grain) and various manufactured goods (including furniture and wooden houses).

The volume index of foreign trade export increased in May 2017 compared with last year’s same period by one percent and the import volume index grew by 11 percent.

Read other news on the city site of Tallinn.

postimees
ANDRIAVILA EESTIENERGIA LEMBITLUMP
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
No rates yet
I recommend
No recommendations yet

Comments

Post your comment to communicate and discuss this article.

Politics
Chairman of the Estonian Chamber of Commerce and Industry and one of the owners of construction group Nordecon, Toomas Luman, finds that a prime ministerial candidate should first and foremost be able to answer the question of what will become of the demographic crisis in Estonia. The businessman sees controlled introduction of foreign labor as the solution. A digital construction cluster was created in Estonia a few years back to bring innovation to the s...
Society
Last year saw 27,125 registered offenses, up 0.5 percent from the year before. Violent crime was up by 12 percent to 8,249 offenses. PHOTO: Dominic Lipinski / PA Wire / Press Association Images / Scanpix Growth was biggest for domestic violence – the police launched criminal proceedings in 3,607 cases that constitutes an increase of more than one-third – annual growth of 37 percent from 2,632 cases in 2017. At the same time, reports of domestic violence we...
Society
TALLINN - Ahead of the withdrawal of the United Kingdom from the European Union, tens of thousands of British citizens have chosen the citizenship of some other country, but only one Brit has recently chosen an Estonian citizenship. Spokespeople for the Ministry of the Interior told BNS that only one British citizen submitted an application for Estonian citizenship last year and the applicant was also granted the citizenship. Before that, no Brits had soug...
Society
TALLINN - Experts from Finland, Denmark, Norway and the Netherlands highlighted the importance of decentralization and granting local governments greater decision-making powers at a conference titled "Strong local government -- strong state?" in Tallinn on Wednesday.  All Nordic countries have chosen a model granting local governments significant decision-making powers, thus the central government does not prescribe how local governments are to fulfill the...
Society
The language learning application Drops by game developer Planb Labs, established in Estonia by Hungarian founders, was named Google Play's best app of 2018. With the number of downloads surpassing 10 million, Drops was named Google's app of the year as the revenue of Planb Labs, a company registered in Estonia, increased fivefold, CNBC said. The developer's revenue grew from €335,000 in 2017 to €1.7 million in 2018. The company's shareholders include Hung...
Society
TALLINN - The Estonian Health Board has banned the distribution of chlorine dioxide, also marketed as the Miracle Mineral Supplement (MMS), the A-component of an unused product, meaning the sodium chlorite solution, must be taken to a hazardous waste collection facility. Ester Opik, head of the Health Board's North regional department, said that the banning of the distribution of the product was caused by the fact that MMS, distributed as a cosmetics produ...
Society
Nature cannot abide a vacancy, as the saying goes. If just one year ago, Estonia was battling the sale of MMS and the practice of giving it to children, a new “miracle cure” called Advanced TRS has appeared on the market now. Even though the make-up of the substance is different, the promise to cure autism and cleanse the body of heavy metals, which kind of extreme detox is accompanied by severe side-effects, sounds all too familiar. TRS is recommended to...
Society
Allied NATO battalions will soon mark two years serving in the Baltics. They have worked better than expected but would need prepositioned heavy weaponry and a functional contingency plan in case of a crisis, a report by the International Center for Defense and Security (ICDS) finds. “We do not know how Russia would have acted had we not welcomed allies in Estonia, Latvia, Lithuania and Poland in 2017. I’m afraid they would have tested our resolve,” one of...
Society
The time of filing income tax returns is nearly upon us. The new income tax system, in effect since last year, will obligate many women who went on maternity leave toward the end of the year to make additional income tax payments, while those who give birth in the middle or at the beginning of the year have no such obligation. What this means is that some women will owe the state simply for giving birth “at the wrong time”. Laura Roop, who went on maternit...