VKG opened a billion-cost oil shale processing plant

Äripäev Online

Today VKG opened a new oil shale processing plant. 27 enterprises took part in its design and construction. The total price of the project amounted to 1,1 bln kroons.

Today the owners of VKG and the President of the Estonian Republic Toomas Hendrik Ilves opened the new oil shale processing plant, the enterprise informed.

Start-up and commissioning works were ongoing at the plant starting from mid-October, and on November 19, the plant got an operate permit from the Administration of the town of Kohtla-Järve. The plans are to start up a stable plant operation in 2010.

Preparatory actions for erecting of the new plant started at VKG in 2002. A large-scale project preparations started in 2005, and construction works started in the beginning of 2007.

All works aiming to construct buildings and install equipment were finalized in October, 2009. 27 enterprises took part in designing and construction of the new plant, the biggest contractors among them were Remeksi Keskuse AS, Fredmaster AS and Viru RMT OÜ. The new plant created 100 new work places.

The project costs reached 1,1 bln kroons. The new VKG plant is one of the biggest investments in industry this year. The project was financed by the banks Nordea and SEB.

In its speech delivered in the inauguration ceremony the President of Estonia underlined the important role of VKG in increase of export volume. The President also mentioned the VKG plans of expansion into Serbia and pointed out a wide potential for development of Estonian oil shale industry on a world-wide basis.

“As a legitimate heir of the First Estonian Oil Shale Industry, VKG supports the development of traditional national branches of industry, and we are able to prove we have taken one more successive step forward in this area”, the President of the Board Priit Rohumaa mentioned.

VKG Oil AS is the biggest and the oldest oil shale processing enterprise in Estonia being in operation since 1924. Its main activity is thermal processing of oil shale to produce shale oil, phenol water and low-heating-value gas. The enterprise employs 560 people.
In the frames of the Estonian Enterprise Competition VKG Oil AS was awarded as the „Best Estonian Enterprise 2009”.