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KLASCO's influence grows in Achema Group

Petras Vaida, BC, Vilnius, 25.02.2011.Print version
Due to a significant slowdown in fertilizer production in Achema company because of gas prices, the port companies gained greater importance in Achema Group, especially Klaipeda Stevedoring Company (KLASCO), which demonstrated good results in 2010, a sea news portal Jura reports.

During the year 2010, Achema Group received 87.5 million litas of unaudited net profit. Achema Group President Bronislovas Lubys acknowledged that in terms of the money earned, the economic center moves from Jonava to Klaipeda. First, this was a result of sharply increased gas prices. For this reason, last season Achema was working in full capacity only for a few months. This year's prospects are not promising either. Gas prices are predicted to rise sharply again. Achema exports more than 80% of produced nitrogen fertilizer through the port of Klaipeda, writes LETA/ELTA.

 

Lubys predicts that the handling of Achema fertilizer in KLASCO this year will be as limited as it was last year.

 

Nevertheless, Achema Group has planned to make 45 million litas of investments in KLASCO bulk fertilizer terminal. According to Lubys, design works of the terminal development will begin this year, but the actual construction will start in 2012.

 

The bulk fertilizer terminal is being developed in anticipation of further fruitful cooperation with the Belarusian producers of fertilizer.

 

"I am glad about our President Dalia Grybauskaite's position that one cannot put an equal sign between Belarus government, the people and economy. The European Union's sanctions against Belarus affected only the government but not the nation and the economy. Our partners in Belarus did not enter the lists and so, they will be able to come and talk to us", stressed Lubys, noting that what had happened did not cause drastic fear of future cooperation.

 

In his assessment, Belarus has a long-term potassium chloride production program. Fertilizer production business has persisted during the crisis in the Russian regions of Ural and Volga. Only the French fertilizer producers have not been able to fight off competition in Europe.

 

Achema Group has small fertilizer terminals in the European ports of Lübeck in Germany and Ghent in Belgium. According to Lubys, they do a good job and return the loans taken for constructions. They will be able to count their profits in a few years.

 

In January, when weather conditions were very bad, and KLASCO did not operate for 12 days, it was able to handle about one million tons of cargo.

 

In B. Lubys' assessment, KLASCO is able to handle about 1.3 million tons per month. It has been challenged to "climb over" to a permanent 17 million ton annual turnover in a decade.

 

Foundations for improved handling in the future are already being laid. It is not only fertilizer that is valued as a viable cargo.

 

"We have signed a beneficial contract for metal loading both to KLASCO and partners. There will be about 1.5 million tons of new cargo per year. We will widely develop the area of metal loading. We have a lot of cranes and we are going to buy some additional equipment", noted Lubys.

 

KLASCO loading opportunities will be significantly expanded in the general cargo, including metals, by started reconstruction of quays No. 7, 8 and 9.

 

This year, before the new harvest, KLASCO has to complete the extension of the grain terminal. The investment will be 20 million litas.

 

"Lithuania has been consistently increasing grain exports. Achema Group is also involved in grain marketing business. We are currently looking for partners to expand this business. Belarusians have also started looking for grain trade routes. We are expanding the grain terminal not in vain. In grain market, new issues constantly emerge and one has to be ready for it", explained the President of Achema Group.






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