Grigiškės becomes Grigeo

Grigiškės becomes Grigeo

2015 10 01

The history of our group of companies dates back to 1823. Step by step, consistently moving towards our vision, we have become a group of companies covering almost the entire production cycle: starting with waste paper collection and processing, wood processing, our own biofuel production, and ending with the manufacture and sales of high-quality products (tissue paper, containerboard, honeycomb, corrugated cardboard and packaging, and solid fibreboard). Over the years, the group has actively invested in the expansion and modernization of equipment, strengthened its position in foreign markets (over 70% of the group’s products were exported in the first half of this year) and has become a serious player in the paper and wood industry not only in Lithuania, but also in the Baltic countries and throughout Europe, therefore, changing the group’s name and further development is a natural step in its growth.

The group’s company names were officially changed to:

Grigeo Grigiškės AB, Grigeo Baltwood UAB, Grigeo Recycling UAB – since 16 October 2015.

Grigeo Klaipėdos Kartonas AB – since 20 October 2015.

The name of Mena Pak PAT, Ukraine should be changed in the beginning of 2016.

The demand for tissue paper has continued to grow rapidly, particularly in the Baltic countries. Due to the changing consumer habits in these countries, it has been forecasted that the consumption of tissue paper will grow by one third in the next five years. Meanwhile, the growing demand for corrugated cardboard and its packaging is directly related to the growth of industry, as well as changing attitudes towards environmental packaging. Because of the increasing cost of manufacturing in China, there has been a trend in industries coming back to Europe. Companies moving their production to European countries are looking for inexpensive packaging in geographically close markets. Industrial production is also growing in Lithuania. According to information from the EU’s Eurostat statistics office, the scale of industrial products in Lithuania grew by 0.5 per cent in July 2015, and by 5.9 per cent over the year. Naturally, the growth in production has increased the demand for packaging boxes. It should be noted that factories and companies increasingly often need green solutions, raising the demand for paper honeycomb. Due to its attractive price and low weight, it is widely used in the furniture and construction industries. The replacement of styrofoam with paper honeycomb to protect products against impact is another trend that is becoming more common.

Aware of the growing demand for production, and development opportunities both in Lithuania and abroad, the group had to take action to increase its production capacity, which is not possible without equipment modernization. This year, a new production unit for raw tissue paper stock was launched. On 28 September 2015, the company signed its 6th financing agreement with Nordea Bank AB for the construction of a building for the new tissue paper conversion line, including installation of the line. These investments will total 29 million euro and will enable the expansion of the tissue paper range and production quantities, plus the ability to enter into contracts with new distributors and supermarkets across Europe. Investments are also being made in the packaging business and increasing the volume of cardboard paper honeycomb production – these areas accounted for 17.5 million euro of investment.

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