Kunda Nordic Tsement to stop clinker production in Kunda
The Supervisory Board of Kunda Nordic Tsement has decided to stop the clinker production in Kunda as of March. The decision was taken due to the significant increase in the cost of CO2, highly affecting the Kunda plant with its high CO2 emission due to the old production technology. Continuation of clinker production in Kunda is financially unmotivated while grinding and distribution of cement from Kunda will continue.
The cement plant in Kunda uses a previous generation, wet process, in its production, which is significantly more energy intensive than the modern dry process. Kunda plant is behind in performance in several key areas.
“We have reached a crossroad in Kunda where a new dry process plant would be required in order to reduce the plant’s clinker production cost and meet the stricter environmental requirements of our stakeholders. Given the relatively limited production volume, such an investment will not be profitable,” says Meelis Einstein, Managing Director of Kunda Nordic Tsement.
The company will continue as a cement grinding plant with sales and distribution of cement to its customers. Production of crushed limestone will continue in Kunda. The clinker will be sourced from other producers and transported to the Kunda plant by ship. Sourcing clinker from more modern plants will reduce the carbon footprint from cement produced in Kunda by some 30%.
As a result of closing the clinker production, about 80 employees will be laid off. “For our part, we are working to ensure that the whole process is carried out responsibly and that all workers made redundant return to the labor market as soon as possible,” says Meelis Einstein. The company will immediately begin a comprehensive partnership with the Estonian Unemployment Insurance Fund to provide the best support and guidance for those affected by redundancy to move into the labor market.