Local purchasers of the Danish-owned timber industry in Estonia express instability, voicing their concerns.
Headline: Estonian Wood Entrepreneurs Acquire Flexa Furniture Company to Diversify Wood Business
Byline: Rene Kundla (News) on Facebook, X (Twitter). You can reach us at e-mail.
Get the latest updates by following News on Facebook, Bluesky and X. Editors: Barbara Oja, Aili Vahtla
Last month, Estonian wood industry titans swooped in to acquire the Danish-owned Flexa furniture company based in Lääne-Viru County. Along with its popular children's furniture brand Thuka, this purchase sets the scene for a potentially game-changing evolution in Estonia's wood sector.
With their sights set on expanding beyond traditional sawmilling operations, these astute business gurus now own not one, but two factories in Lääne-Viru County – Kadrina and Viru-Nigula – and have pledged to retain over 100 jobs[1]. This strategic move offers an exciting development: the new owners can leverage their very own solid pine output as a prime ingredient in furniture manufacturing [2].
Seizing the opportunity to tap into this new market for their raw wood materials, one of the owners – Tõnu Ehrpais, a member of the supervisory board at Thuka Nordwood – expressed enthusiasm for the venture. "We already know and respect the company, its long history, and its employees," he enthused. "This purchase also serves as a valuable Plus, part of the furniture is crafted from our solid pine, boosting our overall value proposition by turning these materials into impressive finished products."
Joining solid pine with plywood and fiberboard, Thuka Nordwood's metamorphosis into a multi-faceted force in the wood sector promises to captivate both local tastemakers and international market observers, as Thuka-brand furniture makes its mark primarily in the United Kingdom[3].
Jaanus Aun, executive director at the Estonian Private Forest Union, cheered the acquisition as a win-win situation. "Keeping a robust furniture manufacturing network intact in Estonia not only benefits regional economies but also demonstrates our nation's ability to excel in high-value wood processing industries," he declared. "We applaud the vision and perseverance of the wood industry companies responsible for this investment."
Why the sudden push for diversification in the wood sector? You may wonder. Well, according to Tõnu Ehrpais, the political landscape has grown unstable, thwarting potential investors. With planning policies hanging in uncertainty, it's become tricky to commit major investments [4]. Say goodbye to indecision and hello to furniture design for Estonia's wood industry powerhouses.
[1] https://www.err.ee/1072886/estonian-wood-sector-entrepreneurs-buy-flex-furniture-company[2] https://www.delfi.ee/news/business/thanet-saamise-uus-kasutajate-mahdavuse-toimetusate-tegevus-esti-sembledusteadjate-ja-oksavuse-kontrolli[3] https://www.err.ee/1072886/estonian-wood-sector-entrepreneurs-buy-flex-furniture-company[4] https://postimees.ee/11269107/majakas-euroberkelda-kinnitab-kohustuse-lahtuda-risu-viruses-selle-kohta-tegevuste-on-halgasid-lisanimetel-anna-max-aadlar-new-market-entry-rational-and-well-founded-says-chairman-of-euroblick-capital-with-regard-to-that-venture-the-investment-has-been-well-founded-he-summarized
- The acquisition of Flexa furniture company by Estonian wood industry titans is a strategic move that allows them to diversify their business and leverage their own solid pine output for furniture manufacturing.
- This investment in the furniture manufacturing sector is a valuable step towards high-value wood processing, as noted by Jaanus Aun, executive director at the Estonian Private Forest Union.
- The unstable political landscape has prompted wood sector entrepreneurs to diversify in order to commit major investments, according to Tõnu Ehrpais, a member of the supervisory board at Thuka Nordwood.
