Covid-19, Crisis, Industry, Lithuania, Markets and Companies, Woodwork

International Internet Magazine. Baltic States news & analytics Monday, 01.06.2020, 18:27

Covid-19: Lithuania's VMG temporarily suspends production

BC, Vilnius , 07.04.2020.Print version
- Vakaru Medienos Grupe (VMG), one of the largest wood processing and furniture production groups in the Baltic states, said on Monday it was temporarily suspending production, according the news website information reports LETA/BNS.

"Taking into account the fact that the majority of countries are under continuous quarantine or are introducing it and continue to close shops, shopping and entertainment centers, excluding food shops, pharmacies and shops selling other essential goods, we are forced to reduce or temporarily suspend our production," Gerda Sesplaukyte, spokeswoman for VMG, told the news website.

In her words, the group is suspending furniture production for one week and that production of particle boards will be suspended for two weeks.

Sigitas Paulauskas, a shareholder of VMG, told the Verslo Zinios business daily earlier this month that the company has no plans to suspend investment, adding that the group's enterprises that suspended their operation will lose 10-15% of their turnover and 5% of their profit.

BNS reminds that VMG completed the construction of a particle board production facility, worth around 140 million euros, in the Akmene Free Economic Zone late last year.

The VMG group's consolidated revenue in Lithuania rose 4 percent to 163.6 million euros in 2018, and its net profit grew 7 percent to 18.7 million euros.

Cyprus-based VMG Holdings owns 100

The VMG group includes Klaipedos Mediena, Sakuona, VMG Technics, and is also the operator of the Akmene FEZ. The group also has enterprises in Belarus VMG Industry Group, VMG Industry, Swoods export and VMG WoodArt.

The VMG group's consolidated revenue in Lithuania rose 4% to 163.6 mln euros in 2018, and its net profit grew 7% to 18.7 mln euros.

Cyprus-based VMG Holdings owns 100% of VMG.

Search site