The Kreenholm textile plant in Estonian is planning to cut at least 900 jobs next year, it was reported.

It could result in as much as EEK40m (US$3.69m) in redundancy benefits, according to Baltic Business Daily.

Kreenholm, located in the Estonian city of Narva, will shut down its spinning and weaving units, together with auxiliary and administrative personnel, reported the news service.

However, it is expected that redundancy payments will be partly funded by the state and even after the job cuts Kreenholm will still have a workforce well above 1,000.