Vapo Oy expands its heating business in Estonia
Vapo Oy’s subsidiary AS Tootsi Turvas and the municipality of Ridala have signed an agreement by which AS Tootsi Turvas acquired the entire share capital of AS Uuemõisa Teenus, a heating production and distribution company owned by the municipality. The annual heating sales of the acquired entity amount to approx. 8 GWh. The heating plant uses locally sourced peat and wood as its fuel. The majority of the district heating network included in the acquisition has been renovated.
AS Tootsi Turvas was established in 1919. Its main products are energy peat, agricultural peat, wood fuels and heating. AS Tootsi Turvas currently supplies heating from eight heating plants and maintains five district heating networks in Estonia.
According to Matti Puuronen, Chairman of the Board of Directors of AS Tootsi Turvas, the company’s goal is to grow its business based on local fuels. The acquisition of AS Uuemõisa Teenus is a good fit with this strategy; the heating plant is in good condition and has sufficient capacity to cover the needs of new customers. “We are well positioned to expand our business to include new customer groups, as our competitiveness is based on our own local fuels”, Puuronen says.
Matti Puuronen, Chairman of the Board of Directors, AS Tootsi Turvas, tel. +372 5124 119