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Grigiskes to Install New Paper Machine in Lithuania
March 14, 2013 - Lithuanian paper producer Grigiskes AB said that it intends to install a paper machine at its mill in Vilnius, Lithuania. This will be the third stage of the company's investment program previously announced in April 2011 by the company's President, Gintautas Pangonis. As part of the third stage, Grigiskes and SEB bank AB on Feb. 20 signed a loan agreement for LTL 35 million (EUR 10.1 million). In 2012, Grigiskes completed the first stage of the investment program by investing LTL 20.5 million (EUR 5.9 million) to rebuild and put into operation a new corrugated cardboard production line. The second stage included an investment of LTL 12.5 million (EUR 3.6 million) to increase the output of the paper mill with the addition of four new paper processing production lines. The loan signed on Feb. 20 will be used to purchase a new paper machine, Grigiskes said. The machine installation project will take two years and will involve more than LTL 53 million (EUR 15.3 million), the company said. Start-up of the new machine is expected by the end of 2014. In a statement, Grigiskes said: “This paper manufacturing machine will be the most modern and will permit the company to adapt more quickly to the ever-fluctuating needs of the market, to satisfy clients' requirements more satisfactorily, to produce a product of even higher quality and to expand the product range. “There is no doubt that these investments will help the company strengthen its position in the European market and will make it possible for it to compete successfully with other manufacturers of paper products. “It is foreseen that the production capabilities of the newest paper manufacturing machine will be double those that currently exist; and the new paper manufacturing machine will replace the two machines with the lowest output of the three paper manufacturing machines that are currently operating.” Grigiskes forecasts that after implementing the above-mentioned investment program by the end of 2014, sales of its products will double in the following two years, and sales within Grigiskes' group of companies may reach LTL 500 million (EUR 145 million). For further information, visit: www.grigiskes.lt. SOURCE: Grigiskes AB |