OREANDA-NEWS. June 01, 2011. The listed Estonian furniture and softboard maker Viisnurk announced the acquisition of a softboard factory in Pussi for four million euros at auction.

Andres Kivistik, chief executive of the Parnu, southwestern Estonia-based company, said the purchase of the Pussi factory is a strategic investment for Viisnurk. "We have a similar factory in Parnu working at full capacity 24/7, but we are not able to satisfy the entire potential demand. As there is demand for our products, we plan to achieve the full capacity of the Pussi factory by late fall this year," he said.

"We estimate that it will be possible to produce up to 70,000 cubic meters of softboard a year in the Pussi softboard factory and the turnover of the factory could thus be around 7-8 million euros. It means a significant increase in turnover for Viisnurk and will help broaden our sales geography," Kivistik said.

With the support of the new production capacity Viisnurk will be able to increase sales to its customers in Asia and western Europe for whom it could not produce enough in the Parnu factory as Scandinavian customers were given priority, the CEO said.

Completed in 2009, the Pussi factory came to a standstill in May 2010. The factory was built by MKT Holding and the total cost of construction and equipment exceeded 14.7 million euros. MKT Holding was declared bankrupt in October 2010. The factory was first put up for auction in December last year at a starting price of 200 million kroons or 12.8 million euros.

Viisnurk posted a turnover of 13.9 million euros and net profit of 771,000 euros in 2010. Export accounted for 83 percent of the turnover.