GRIGISKES AB has signed a financing contract for a new paper manufacturing machine

Vilnius, Lithuania, 2013-02-21 07:35 CET (GLOBE NEWSWIRE) – On 20th February 2013, GRIGISKES AB and SEB bank AB signed a loan supply contract for LTL 35 Mio (EUR 10.1 Mio). This begins the third stage of the investment program announced in April 2011, the company’s President Gintautas Pangonis announced.

As announced in earlier reports about material event, in 2012 GRIGISKES AB completed the first stage of the investment program when it invested LTL 20.5 Mio (EUR 5.9 Mio) and built and put into operation a new corrugated cardboard production unit equipped with modern production lines. The second stage consisted of an investment of another LTL 12.5 Mio (EUR 3.6 Mio) to increase the output of the paper production unit by the addition of four new paper processing production lines.

The loan to be obtained as a result of the financing contract signed yesterday will be used to purchase a new paper manufacturing machine. This investment project will take two years and will involve more than LTL 53 Mio (EUR 15.3 Mio). It is planned to have the new production line operating by the end of 2014. GRIGISKES AB intends to purchase a new, up-to-date, European paper manufacturing machine. 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 AB plans that at the end of 2014 when it has implemented the above-mentioned investment program, sales of the company’s products will double in the following two years. It is hoped that the growing sales figures of the group of companies will reach LTL 500 Mio (EUR 145 Mio).

ENVIRONMENTAL PROTECTION INVESTMENTS AT AB GRIGIŠKĖS

In  2011-2012, AB Grigiškės (Vilniaus St. 10, Grigiškės, Vilnius City Municipality) implemented the project “Implementation of Air Purification Facilities in the Paper Production Department of AB Grigiškės”. Its total value was LTL 506,022. The Lithuanian Environmental Investment Fund (LEIF) made a grant to the project of LTL 326,560 as part of the “Projects Related to the Implementation of Air Purification Facilities” measure.

The company installed a “Moldow” air-purifier produced by the Danish company, Moldow A/S, to reduce the volume of particulate matter discharged into the environment in the process of paper manufacturing. A modern sleeve filter equipped with an automatic regenerative filter system allows significant reduction of particle pollution in the paper manufacturing department and in the air released into the environment. The device’s filtering efficiency is greater than 95%. The “Moldow” air-purifier, which returns cleaned air back to the premises and so saves energy intended for heating, can be operated in either winter or summer mode.

The project has enabled the company to reduce the environmental impact of its business by decreasing particle pollution and increasing the efficiency of thermal energy use. AB Grigiškės is aiming to further reduce its environmental impact by investing in new equipment to modernise its production that will save electrical energy, thermal energy and natural resources.

AB GRIGIŠKĖS has successfully implemented the “Looking for Business Partners of AB Grigiškės in Foreign Markets" project.

On 17 October 2012, AB Grigiškės completed the "Looking for Business Partners for AB Grigiškės in Foreign Markets" project as part of the “Economic Growth” Operational Programme (the New Opportunities measure, Priority 2, Increasing Business Efficiency and Improving the Business Environment), which has seen the company taking part in two trade fairs and being awarded three certificates. On 5 May 2012, the company signed Project Financing and Administration Agreement No S-VP2-2.1-ŪM-04-K-03-083, which is the vehicle that allocates funds from the European Regional Development Fund (ERDF) and the national budget of the Republic of Lithuania for the project. The implementation of the project required LTL 81,543.00, including LTL 44,848.00 allocated from EU funds. 

On 2 October 2012, UAB Baltwood, a subsidiary of the AB Grigiškės group of companies, signed an agreement with the operator of the energy-resources exchange, UAB Baltpool, and will now participate in the biofuel exchange.

UAB Baltwood was among the first companies aiming to trade on the biofuel exchange, which was opened on 1 October 2012.

According to Mr Gintautas Pangonis, President of AB Grigiškės, “We are interested in purchasing biofuel on the exchange, as this allows diversification of resources by attracting new suppliers and at the same time increases competitiveness. This would provide more favourable purchase prices and conditions. Quite recently, a biofuel-fired boiler house has been built and installed on the AB Grigiškės site. Heat generated in the boiler house is used in the technological processes and may also be eventually supplied to consumers of heating energy.”

GRIGISKES AB manufactured sanitary paper products were awarded the EU Eco-label Flower

On August 3, sanitary paper products manufactured by GRIGISKES AB were awarded the EU Eco-label Flower. GRIGISKES AB is the first company in Lithuania to be awarded this label by the Environmental Protection Agency. The EU eco-label is awarded to goods and services meeting the environmental demands for EU eco-labelling scheme.

To produce its eco-products, GRIGISKES AB uses processed pulp or sustainably managed forest fibre thus saving electricity, using sustainable resources and reducing environment pollution. These products contain no harmful substances, are less polluting the environment and are not dangerous to health.

The EU Eco-label will provide an opportunity to better meet the needs of business partners. Also, the company will increase its competitiveness on the Lithuanian and international markets, in particular in the Scandinavian countries, where environmental protection and promotion of organic products are given a major focus. It will significantly enhance the company's opportunities for participation in green procurement (procurement, where the contracting authority includes one or more environmental criteria in its public tender conditions, choosing goods, services and work not only by their price and quality but also lower environmental impact in a single, several or all phases of the product lifecycle, thus promoting the development of more environmentally friendly products).With the EU eco-label, the company can participate in international tendering procedures, offering paper products with private label and presenting its products on major European trade networks. Until now, exports to the Scandinavian and other European countries were very limited, precisely because the company did not have the EU Eco-label.

This label is important on the Lithuanian market as well. The Lithuanian Government decree obliging budgetary institutions to significantly increase their volumes of green procurements became effective in January 2012. This year, green procurement will have to total at least 25 percent, in 2014 no less than 30 percent and in 2015 no less than 35 percent of the overall procurement amount, by volumes and by value.

GRIGISKES AB continues successful implementation of World Class maintenance system.
Vilnius, Lithuania

GRIGISKES AB successfully accomplished proactive reliability maintenance project now providing opportunity further to improve the reliability and efficiency of existing production assets. Project implementation started on the 18th of February, 2011 when GRIGISKES AB and SKF Lietuva UAB signed a proactive reliability maintenance service agreement. Within a period of one year professionals of SKF group carryed out agreed obligations and delivered World Class maintenace experience to GRIGISKES AB technicians with the unique opportunity for company’s rapid improvement.

During project implementation an innovative GRIGISKES AB maintenance strategy was developed. The aim of teh strategy is influence to potencial failures of existing production assets which are critical to safety, environment and economics sense. This system allows plan preventive and diagnostic maintenance tasks in order to reduce cost and improve output. Proactive equipment-reliability -oriented activities keep improving the processes of maintenance of equipment and increase efficiency of existing production equipment.

To support the maintenance strategy, GRIGISKES AB also implemented an extensive computerized maintenance management system, which helps to optimise all maintenance activities and procesess. Development of key performance indicators system guide to straight indentification and prediction of equipment failures with decision making in maintenace areas, production planning and order fulfillment in time.

GRIGISKES AB will continue implementing Word Class maintenance in subsidiaries to fulfill the ambition to reach hight quality services, flexibility execution of client orders and become an important player in the market.

On 2 January 2012, in the implementation of the decision of the Company’s Board adopted on 1 December 2011, AB GRIGIŠKĖS transferred one of the segments of its activities, wood fibre board manufacturing, to its wholly-owned subsidiary UAB Baltwood.

The Board of AB GRIGIŠKĖS adopted this decision in order to improve the efficiency of production processes, optimise the processes of the procurement of main feedstocks, product supply, production, and logistics as well as to reduce costs and improve the profitability of its activity segments.

After the transfer of a part of its activities to the subsidiary, the public limited liability company GRIGIŠKĖS will continue to carry out activities related to the production of hygiene paper products and corrugated cardboard packaging, while UAB Baltwood, where qualified employees currently working in the public limited liability company GRIGIŠKĖS and related to the transferred part of activities will continue to work, will carry out activities related to wood processing.

Grite Family, a product of AB Grigiškės, awarded with the GOLD medal category in the contest “Lithuania’s Product of the Year 2011”

Sanitary tissue Grite Family was awarded with a gold medal among the awards of the contest “Lithuania’s Product of the Year 2011” held on 16 December 2011 in the category of wood processing, furniture, and paper industry.

82 companies operating in 15 industries of the country were nominated in the contest “Lithuania’s Product of the Year 2011”, which is regarded by the business community as the most important national contest. A commission formed by experts of two levels and representing various industries and business segments, having summarised expert opinions, decided to award 83 gold and 15 silver medals to selected products and services.

Upgraded, with natural whiteness, especially soft and durable, three-layer sanitary tissue Grite Family (4 rolls in a package) was launched on the Lithuanian market in August 2008. 8-roll Grite Family packages were introduced to consumers in June 2009. According to the data of market research conducted in October 2010 – October 2011, Grite Family is the leader of the three-layer sanitary paper segment holding a 21.6 % share of this market.

Products are made of sorted processed fibre with exclusive, unparalleled, twig-shaped embossed imprinting. Grite Family rolls are noted for high paper weight and, therefore, are sufficient for a longer time. Grite Family – for the whole family!

16 June 2011 - Biofuel boiler house officially launched in AB “Grigiškės”

AB “Grigiškės” designed and constructed a new 18 MW biofuel-fired steam boiler house. The new biofuel boiler house was constructed and installed within one year from contract signing by General Contractor UAB “Enerstena”. Equipment supplier was the Swedish company Järnforsen Energi System AB.

“We started this project in order to reach larger competitiveness of production and reduce business risk due to constantly and unpredictably rising gas prices. The new biofuel boiler house produces energy from renewable energy sources, i.e. biofuel. Part of biofuel is waste of our own production. We believe it to be a very successful investment, which will reduce the cost of our production”, said AB “Grigiškės” Managing Director Gintautas Pangonis.

In 2008 AB “Grigiškės” submitted the application to PI “Lithuanian Business Support Agency” in order to receive support according to the European Union structural support project “Modernization of Heat Sector through Wider Use of Renewable Energy Resources”. On 31 August 2009 AB “Grigiškės” signed the trilateral funding contract with the Ministry of Economy of the Republic of Lithuania and PI “Lithuanian Business Support Agency”. Construction works were started in summer 2010 and supply of the first heat for production was started already in February 2011.

Total project value amounts to around 19 million LTL, from them 8.86 million LTL comes from the European Union Structural Funds and the state support of the Republic of Lithuania.

Upon implementation of the new project, the company will reduce the cost of heat needed for production process. Twice cheaper biofuel from the wood, comparing to the gas imported from Russia will be used for steam production.

On 16 June 2011 the ribbon to officially open the 18 MW biofuel boiler house was cut during the celebration in the territory of AB “Grigiškės” and the boiler-house was extemporaneously “turned on”. Employees of the company and representatives of organizations that have participated in the project joined the celebration. After the official part the tour of the biofuel boiler house was organized for the guests.

On 5 May 2011. Toilet paper Grite FAMILY 8 – successful 2010 new product in Estonia

Traditionally each year, international market analysis and research company „Nielsen“ selected best new launch products of 2010 in fast moving consumer goods sector.

Hygienic toilet paper Grite Family 8, produced by AB „Grigiškės” was named as most successful new product of 2010 in the paper products group in Estonia.

During evaluation of most successful new launched products were analyzed average monthly sales data during 2010 and conducted online survey of users of the products about the products they most frequently use and are most likely to buy.

AC Nielsen best new launch product certificate

Toilet paper Grite Family 8 Natural white color, extra soft, three plies toilet paper, Grite Family 8 rolls is produced from sorted recycled fiber. Grite Family rolls have more paper weight (0,826 kg±5% netto paper weight per pack), and are more sufficient and lasting for longer period of time.    Grite Family – for all family!

On 20 January 2011 GRIGIŠKĖS AB was acknowledged as the company that made the greatest progress in the three Baltic States in the area of relationships with investors

On 20 January 2011 NASDAQ OMX Baltic securities exchanges in Vilnius, Tallinn and Riga announced the results of the Baltic securities market awards. These annual awards have been organized for already five years. 56 companies in the trading lists of the Baltic Countries exchanges and the members of all three exchanges were evaluated.

On 20 January 2011 Grigiškės AB was awarded as the company that made the greatest progress in the three Baltic States in the area of relationships with investors. The Company’s progress in this area has grown up by 33% during the year. According to Henrik Elfving, the President of NASDAQ OMX Baltic States securities market, in 2010 even 25 companies from the Baltic States improved their relationships with investors and the progress made by Grigiškės AB was the greatest.

'We are very pleased that the competent commission, formed from the representatives of Lithuanian, Latvian and Estonian securities market, evaluated the progress of Grigiškės AB. We really took pleasure in standing on the stage and taking the prize. However, we should also say that this evaluation was not unexpected to us, because during the entire year we worked arduously in order to improve our relationships with investors. We also promise to keep close relationships with the investors in the future and to timely provide qualitative information to the current and potential investors’, said the Company’s Director General Gintautas Pangonis.

Grigiškės AB is one of the few companies that purchase the market formation service to its shares. Since August 2009 the purchased service is intended to increase the shares liquidity and it shows that the Company takes care of the interests of its small shareholders.

Starting from July 2010 the shares of Grigiškės AB have been transferred from the additional list of NASDAQ OMX Vilnius to the Official list.

Grigiškės AB product Grite Orchidea Gold was awarded GOLD medal category in the competition “Lithuanian Product of the Year 2010”

On 30 November 2010 the meeting of the annual competition “Lithuanian Product of the Year 2010” took place at the Lithuanian Confederation of Industrialists, during which the commission of experts awarded GOLD medal to Grigiškės AB toilet paper Grite Orchidea Gold.

The especially soft toilet paper Grite Orchidea Gold of the highest quality, 3-ply, is distinguished by its embossed orange spray form and the stylish package of original design.

Grigiškės AB is constantly developing and improving the manufactured production. Grite Orchidea Gold products are manufactured with modern, fully automated line. The new Lithuanian production of good quality is penetrating to European market and proclaiming Grite’s name. This year during 11 months in Lithuania 6.13 million rolls of Grite Orchidea Gold toilet paper were sold. This is by 57% more than during the same period in 2009.

According to the data of market researches in 2009-2010, the share of Grite Orchidea Gold in Lithuania in its quantitative expression increased from 3.5 to 5%, in Latvia from 9 to 13%. In 2010 Grite Orchidea Gold had around 7% of the entire toilet paper market in the Baltic States. In total over 30 million rolls of the toilet paper Grite Orchidea Gold has been sold.

In July 2010 Grigiškės AB was granted the FSC production chain certificate

In June 2010 BM TRADA Certification division BM TRADA Lietuva UAB performed Grigiškės AB audit, during which it audited the conformities of the wood fiber hardboard to the special requirements of the FSC (Forest Stewardship Council) standards. In July 2010 Grigiškės AB was granted the FSC production chain certificate. This certificate ensures that the wood, acquired from the responsibly managed forests with the harmonized environmental management, social welfare and long-term economic benefit, is used for manufacture of products.

On 3 March 2010 Grigiškės AB acquired AGR Prekyba UAB

On 1 March 2010 GRIGIŠKĖS AB and HANNER AB signed the memorandum on conclusion of the shares purchase-sale transaction. Under this transaction HANNER AB sold and GRIGIŠKĖS AB purchased 100% of AGR Prekyba UAB shares. AGR Prekyba UAB owns 100% of shares of the company AVESKO UAB. The latter owns 96.18% of shares of KLAIPĖDOS KARTONAS AB.

The aim of this transaction is to develop GRIGIŠKĖS AB business of corrugated board and its products.

2007 11 22 - Interim results for October 2007

In October the Group which consists of JSC Grigiskes and daughter enterprise Baltwood LTD reached a turnover of LTL 14.23 mln. (EUR 4.12 mln.) which is by 32.24 % more than for October in 2006 when the turnover was LTL 10.76 mln. (EUR 3.12 mln.) and earned a profit of LTL 1,1 mln. (EUR 0,32 mln.) and it is 57.14 % more than it was in October 2006. Over ten months this year the Group’s turnover outmeasured LTL 119 mln. (EUR 34.5 mln.), comparing with the same period 2006 the sales increased in 20.98 %. Over ten months 2007 the Group earned a profit of LTL 5.98 mln. (EUR 1.73 mln.).