Estonian dairy giant E-Piim collapses despite cheese factory success
AS E-Piim Tootmine, a major Estonian dairy producer, filed for bankruptcy on Wednesday. The company has struggled with mounting debts and failed negotiations among its owners. Despite these challenges, the modern cheese factory in Paide had helped triple sales revenue in recent years.
The company's financial troubles began with cost overruns during the construction of its Paide cheese factory. Though the facility boosted sales and expanded employment to nearly 200 workers across Paide, Põltsamaa, and Järva-Jaani, losses persisted. By the start of this year, E-Piim's debt had reached €29 million.
The Estonian state had previously invested €15 million in the Paide plant's construction. However, ongoing financial strain led to bankruptcy after talks between owners collapsed. CEO Anti Orav and the management board had been working since December 2025 to stabilise the situation.
A potential sale to Dutch dairy company A-Ware was discussed in early February. Now, multiple firms have shown interest in acquiring E-Piim's operations through bankruptcy proceedings. The management has assured employees there are no immediate plans for layoffs and remains focused on keeping production running to preserve the company's value.
The bankruptcy filing marks a turning point for AS E-Piim Tootmine, which had grown significantly since opening its flagship cheese factory. With no layoffs planned and several buyers interested, the company aims to secure its future under new ownership. The outcome will determine the fate of nearly 200 jobs and the dairy's role in Estonia's food industry.
Read also:
- India's Agriculture Minister Reviews Sector Progress Amid Heavy Rains, Crop Areas Up
- Sleep Maxxing Trends and Tips: New Zealanders Seek Better Rest
- Over 1.7M in Baden-Württemberg at Poverty Risk, Emmendingen's Housing Crisis Urgent
- Cyprus, Kuwait Strengthen Strategic Partnership with Upcoming Ministerial Meeting
