TALLINN — Major financial difficulties in Denmark’s Flexa Holding is forcing the company to close down production in the country and relocate to Estonia.

Flexa’s CEO Ole Borch said the furniture company’s debt is 1.2 billion krooni (€7.65 million). Estonian operations however have existed without noticeable debts and the group has enough money to finance the companies operating in Estonia. Borch said however that Flexa Heat, which manufactures peat pellets earns profit.

“We did a lot of calculating since fall last year until February and we finally decided to close down our factory in Denmark and expand the furniture production in Estonia. The work quality in Estonia is remarkable, therefore we decided to give our energy in expanding the production in Estonia,” Borch told the press.

Sven Kluster, Flexa general manager, told Baltic Reports that while the move would cost 40 jobs in Denmark, it will create 20-25 in Estonia within six months.

Flexa manufactures children’s furniture from flexible materials.

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