Feb. 21, 2013
(Globe Newswire) -
On 20th February 2013, GRIGISKES AB and SEB bank AB signed a loan supply contract for LTL 35 Mio (EUR 10.1 Mio). This begins the third stage of the investment program announced in April 2011, the company's President Gintautas Pangonis announced.
As announced in earlier reports about material event, in 2012 GRIGISKES AB completed the first stage of the investment program when it invested LTL 20.5 Mio (EUR 5.9 Mio) and built and put into operation a new corrugated cardboard production unit equipped with modern production lines. The second stage consisted of an investment of another LTL 12.5 Mio (EUR 3.6 Mio) to increase the output of the paper production unit by the addition of four new paper processing production lines.
The loan to be obtained as a result of the financing contract signed yesterday will be used to purchase a new paper manufacturing machine. This investment project will take two years and will involve more than LTL 53 Mio (EUR 15.3 Mio). It is planned to have the new production line operating by the end of 2014. GRIGISKES AB intends to purchase a new, up-to-date, European paper manufacturing machine. This paper manufacturing machine will be the most modern and will permit the company to adapt more quickly to the ever-fluctuating needs of the market, to satisfy clients' requirements more satisfactorily, to produce a product of even higher quality and to expand the product range. There is no doubt that these investments will help the company strengthen its position in the European market and will make it possible for it to compete successfully with other manufacturers of paper products. It is foreseen that the production capabilities of the newest paper manufacturing machine will be double those that currently exist; and the new paper manufacturing machine will replace the two machines with the lowest output of the three paper manufacturing machines that are currently operating.
GRIGISKES AB plans that at the end of 2014 when it has implemented the above-mentioned investment program, sales of the company's products will double in the following two years. It is hoped that the growing sales figures of the group of companies will reach LTL 500 Mio (EUR 145 Mio).