Grigiškes has already secured LTL35m (€10m) in financing from Skandinaviska Enskilda Bankens (SEB). New tissue machine is expected to come online by the end of 2014.
Lithuanian tissue, hygiene paper products and corrugated packaging manufacturer Grigiškes AB plans to increase its tissue capacities. Grigiškes announced it has secured a LTL35m (€10m) loan from Skandinaviska Enskilda Bankens (SEB) and would invest the money in purchasing a new tissue machine. The company was currently negotiating with major European machine suppliers on the delivery of the new 25,000 tpy machine, but had not made final choice yet, Gintautas Pangonis managing director of Grigiškes explained.
Grigiškes employs 270 people and runs three machines with a maximum installed capacity of approximately 25,000 tpy of tissue. The new tissue machine is expected to come online by the end of next year and will reportedly replace the two smaller machines TM 2 and TM 3 with a total maximum capacity of 9,000 tpy.
Investing in additional tissue capacities should allow Grigiškes to keep pace with the growth in tissue and hygiene products demand in the region. Growth potential in the Baltic countries and in adjacent regions is big given that the annual per capita consumption is up to five times lower than in mature European markets, the company said. Apart from Lithuania, the main sales markets for Grigiškes’s tissue products are Latvia, Estonia and Denmark.
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