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International Internet Magazine. Baltic States news & analytics Saturday, 15.08.2020, 11:40

VMG's new production facility in Akmene to launch production soon

BC, Tallinn/Vilnius, 29.07.2020.Print version
Vakaru Medienos Grupe (VMG), one of the largest wood processing and furniture production groups in the Baltic states, says its new production facility in the Akmene Free Economic Zone should start production this week. The company has invested 140 million euros into the new facility, informs LETA/BNS.

It was supposed to start production back in late April or early May but the coronavirus lockdown affected the plans as specialists from Germany's Siempelkamp could not come to Lithuania to complete the work.

Sigitas Paulauskas, VMG's major shareholder, says Siempelkamp's specialists have been working at the production facility for a month now.

"The plant should launch production this week, and the official opening will take place on September 10. I hope we will produce the first batch, everything is ready," Paulauskas told BNS.

Earlier this month, VMG borrowed 86 million euros from Swedbank, Citadele and the European Bank for Reconstruction and Development (EBRD) to finance its business expansion.

The construction of a furniture production facility has already started nearby and the company plans to invest around 60 million euros, Paulauskas said, adding that the corinavirus crisis has not affected the construction and it should come online in a year.

The group is now producing more than before the quarantine, and sales in exceed plans by 10 percent in June, the VMG shareholder said.

VMG posted 198 million euros in turnover last year, up 21 percent from 2018, and its net profit rose 6.5 percent to 19.97 million euros. The group had some 1,770 employees at the end of last year.

Cyprus-based VMG which Holdings Paulauskas controls owns 100 percent of VMG.

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