Estonian Mail Handling Co to invest Eur16m in innovation
Eesti Post (Estonian Post) intends to invest in 2003-2005 almost 250 million kroons (EUR 15.97) in the development of postal and logistical services according to a new development plan.
CEO Alo Streimann said 53 percent of the investments will be channeled into developing logistical services, 19 percent into modernizing the production infrastructure and 10 percent into purchasing and replacing mail handling equipment.
The firm will finance the investment plan from equity, the 35 million kroon proceeds from a three-year bond issue and low-interest loan capital in the sum of five million euros to be borrowed in the next two years from the international financial market, he said.
“We’ve already talked about it with some foreign banks, but it’s too early for more details,” Streimann said.
He observed that raising the efficiency of work and putting new equipment into operation will inevitably cause redundancies, but no post offices will be closed and the existing mail delivery network will be preserved.
Eesti Post reported last year a net profit of 34.03 million kroons on turnover of 629.14 million kroons.
