Covid-19, Employment, Energy, Estonia, Financial Services, Transport

The loan is to be issued for a period of five years and the annual rate of interest on the loan is 2%. The loan will be issued in tranches, and the first payout will be made this week, according to Alexela.

"During the first phase of adapting to the crisis situation, we had to optimize the structure of companies in the group, and among the people who had to be made redundant across the group, there were 58 people from Kivioli Keemiatoostus, whose jobs we could not preserve," Alexela Grupp CEO Andreas Laane said in a press release.

The loan is secured with a share pledge of 40% by Alexela Varahaldus and supplementary securities by Alexela Grupp. According to the loan conditions, Alexela must guarantee the preservation of 500 jobs in Kivioli Keemiatoostus in the Kivioli region. 

Alexela Grupp employs over 1,000 people across Estonia. The group's fields of activity include energy, industry and real estate. The group includes Kivioli Keemiatoostus, steelwork company Kohimo, Tiki trailer manufacturer Bestnet, hot-dip galvanizing plants in Paldiski, Estonia, and Rauma, Finland.

Alexela also develops LNG terminals in Paldiski, Estonia, and Hamina, Finland. The group also produces biomethane from local raw material in its biogas plants in West-Viru County, Tartu County and Jarva County.