About the company
Viru Keemia Grupp is a private Estonian large-scale industrial enterprise. We focus on oil shale mining, shale oil, combined heat and power production and production and marketing of fine chemical products.
Our central values are openness, dedication to our work, and continuous development. We believe that every step and every action we take must create value for everyone – our employees, partners, clients, and the local community alike.
Viru Keemia Grupp, a private capital based enterprise located in Kohtla-Järve, is the largest shale oil producer in Estonia, proudly continuing the Estonian tradition of adding value to oil shale that dates back to 1924. The enterprise is based on private capital since 1997 as a result of the privatisation of AS Kiviter.
Our objective, and an important consistent principle is to add value to and lengthen the value chain of the oil shale industry to the maximum extent possible. Today, VKG’s value chain is the longest in Estonia and one of the longest in the world.
Our strategic objectives
1.
Ensuring the availability of raw material
2.
Extracting the maximum amount of energy from oil shale
3.
Adding maximum value to end products
4.
Promoting an organisation culture aimed at efficiency
5.
Promoting an organisation culture aimed at efficiency
The Group’s strategic objectives in connection with climate changes
1.
In 2021–2024, we shall start establishing large-scale renewable energy production capacities
2.
We shall create possibilities for reducing the carbon dioxide emissions by up to 40% by 2030
Sustainable development as a key to business management
Over the past decade, we have purposefully and consistently worked in integrating a model of sustainable development and corporate responsibility into the Group’s management system. By today, those principles are an integral part of our business model. We are oriented to long-term relationships with partners and clients as well as to the production of fuel and energy as efficiently as possible, considering its impact on the environment. In aspiring towards our strategic objectives, we wish to create values for stakeholders in all the stages of activity.
Social responsibility developments
Production safety
Strategic priority ‘Objective is zero – not to cause damage to people, the environment, or property in the course of work!’
Development of a culture of safety
Systemic approach to the management of production risks
Environmental protection
System of environmentally sustainable management
Plan for reducing the burden on ambient air
Accounting and control of greenhouse gas emissions
24/7 monitoring of environmental protection indicators
Employee development
Contemporary model of employee motivation
Training, development and career-building plans
Partnership with trade unions
Supporting the socioeconomic and cultural development of the region
Preservation and creation of jobs
Competitive pay for the Group’s employees
Partnership with regional NGOs and authorities
Supporting initiatives and projects aimed at promoting and diversifying the educational, sports and cultural life in the region
Increasing importance of environmental and social factors
The safety of people and processes, the impact of industry on the surrounding environment, and other social aspects are of increasingly broader resonance and interest in the society and we have observed a growth in the society’s demands, standards and needs in these matters.
The ecological and social aspects of activities acquire an increasingly prominent place in the activity plans of industrial enterprises which are looking for innovations for the development of low carbon emission technologies and the reduction of the environmental impact of their industry. Financial institutions are also taking an interest in these matters, with banks and funds talking about restricting investments into enterprises engaged in traditional energy production or planning to take into account the carbon footprint in managing financing portfolios.
Bases of sustainable economic activities
Environmental and production safety
VKG strives to act in way that does not cause damage to the environment or human health and is concerned about the preservation of its production resources. Safety is one of the three strategic priorities of the Group. We are consistently moving towards achieving the main objectives of the area of ecological and production safety – 0 fatalities and 0 technical accidents.
The results of 2019:
The number of serious occupation accidents decreased by 43%
The share of total registered incidents or the TRIR indicator decreased by 8%
Development of employee potential
The achievement of the sustainable development goals and the productivity of the Group largely depend on its employees. We make efforts to attract, motivate, develop and retain the best available employees.
The results of 2019:
The average salary was 1,629 euros (+10.2%)
Personnel expenses amounted to 49.6 million euros (+8.8%)
Investments into the development and training of employees amounted to 253,600 euros (+19.8%)
More than 70 training programmes were held for employees
69 university students did their practical placement with us
Social policy
VKG establishes long-term relationships with local authorities, clients, partners, suppliers and associations. The Group creates jobs, supports the development of education and culture and makes other social investments on the regional level.
The results of 2019:
More than 35 initiatives in a total amount of over 145,000 euros were supported
Voluntary work by the Group’s employees is supported
Technological development and innovation
New technologies allow us to work more safely and efficiently. The Group invests resources in technologies which may create greater value for our company now and in the future, including into the modernisation of production units, the infrastructure, the storage and reprocessing methodology systems, energy-efficient technologies, and many other things.
The results of 2019:
An ICT crisis management plan was prepared
The preparation of a procedure for the management of the information system and information security
In cooperation with state enterprise Eesti Energia, we started work on the shale oil pre-refining project
An order has been placed for the construction of a solar panel park with an annual total capacity of 38 MW
Project Industry 4.0 at the Ojamaa Mine: operative transmission of data to the depth of 30 metres and the introduction of a system for the transmission of digital data using underground technical equipment in order to optimise the use of time
A 10 km heating mainline renovation project with a total cost of over 4 million euros was completed
General corporate management and risk management
The general management system of the company establishes the distribution of authorisations in the area of sustainable development and the entailing risk management. Important tasks and results are reviewed at management board meetings.
The results of 2019:
A procedure has been established for preventing conflicts of interest and combating fraud and corruption.
Work has commenced to bring the risk management system up to date.
Corporate responsibility strategy
For us, a responsible attitude towards business activities means caring for production and environmental safety, minimising the negative impact on the environment and taking into account the interests of a wide circle of stakeholders (including employees, clients, suppliers, subcontractors and local associations). Increasing the efficiency of the management of production processes and the related risks helps us to achieve these objectives.
| Area | Objective | Main tasks and problems | Success indicators | |
| Safety | Ensuring the maximum possible level of production safety and reducing the environmental burden. | Ensuring the reliability of the technical condition of production processes. Limiting the effect of the human factor where possible. Sufficient training and qualification of employees before being allowed to commence work. |
Absence of fatalities. Absence of technical accidents. |
|
| Efficiency | Increasing the efficiency of all the areas of activity, including in adverse field conditions. | Using resources as efficiently as possible. Extending the oil shale value chain. Expanding the geography of the client base and product marketing, including entering new markets. |
Higher oil extraction percentage with a decreasing environmental footprint. Stable sale of fine chemistry products in the US market. |
|
| Innovation | Development and introduction of innovative solutions. | Finding and introducing a functioning and economically effective solution that fits the production processes. Training and developing the competences of personnel. |
Use of virtual reality solutions in production training and fault diagnostics. |