Estonia, Markets and Companies

Sangar, which predominantly manufactures men's shirts, decided to fully transfer to buying in production starting from the next production season, Sangar CEO Raul Saks said.

"We will continue with the current production model for three months and proceed in a new way starting July," he said. "Already at present, 70% of our production is completed outside Tartu and with the change to be made, we can focus on developing sales and the brand more than before," Saks added.

Due to the lay-off altogether 60 people involved in production must leave Sangar, including 40 tailors, fitters and other skilled workers.

Juri Kraft, founder of Sangar, told Tartu Postimees that everything started rattling after the termination of a contract by longtime major partner Eton AB last year. "Eton was a large stable buyer and things will become tough when that kind of a buyer disappears," Kraft said.

Last week, listed Estonian garment manufacturer and seller Baltika announced that it will discontinue production operations in Estonia. With that, the company is to lay off altogether 350 people at Lasnamae in Tallinn and in the northeastern city of Kohtla-Jarve this year.