VKG and EAS are opening the new production unit. The goods manufactured by this unit will be used all over the world.

On 12 June, VKG in cooperation with Enterprise Estonia (EAS) is opening the synthetic resin production unit on the industrial territory of VKG in Kohtla-Järve. This resin will be used as a raw material for the leading global car tyre manufacturers. The unit was constructed and launched with the assistance of EAS.

Jaanus Purga, the Development Director at VKG: “The tyre industry market is one of the most conservative markets in the world, which is why we had the high ambition to get there with the resin manufactured on the basis of oil shale, and it was quite risky right from the start. We are very pleased with the fact that EAS has shared with VKG the business risk associated with setting up the high-technology production in Kohtla-Järve. It is owing to this courage that the raw material manufactured on the basis of the main state resource will be exported to a number of different world countries”.

Aivar Roop, the Director of Entrepreneurship and Innovation Centre: “The tyre resin manufactured by VKG confirms that oil shale can be used for manufacturing quite expensive products. It is also very important that there is high demand for these products outside of our traditional export markets. EAS is continuously searching for similar projects, which combine the smart use of resources, product development, and the end products that would be competitive on export markets”.

The design and construction of the synthetic resin production unit started in 2011. The works were completed in 2012, when the first batch of produce was also released. Within the next two years, some minor sales activities took place, but mainly large-scale testing and marketing activities were carried out within that period, the aim of which was to prove that the goods manufactured in Kohtla-Järve conform to the highest standards of the global tyre industry. The cost of the production facility is about 2 million EUR. The contribution of EAS into that amount made up about 230,000 EUR, i.e. over 10%. At the moment, VKG is holding negotiations with a number of other large tyre manufacturers. But it can already be claimed that in the nearest future the majority of cars in Estonia will be going round on the tyres which will have at least a small bit of Kohta-Järve oil shale.

Additional information:
Julia Piilmann
Head of the Public Relations Department at VKG
Phone +372 334 2702
GSM +372 523 2700
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