JSC “Klaipėdos kartonas” which is managed by the investment company "Avestis" has started the production of a new product – cardboard honeycomb. Today the officially presented new line exceeds the demands of the domestic market, therefore the intensive negotiations with foreign buyers are held.
According to the chairman of administration of the "Klaipėdos kartonas", Šarūnas Kliokys, the totally new honeycomb line which can produce up to 14 million square meters of production, is a part of the approved company development strategy. The first such equipment in Baltic States will strengthen “Klaipėdos kartonas” position as a paper industry leader in the region.
"At this stage one of the company’s development priorities is to diversify production, introducing the production of new products", - emphasizes Š.Kliokys.
According to him, the company is more protected from price volatility, when producing more different production, and it is at the final stage of positively affecting the profit rate. In 2006 “Klaipėdos kartonas" invested in the production of the corrugated cardboard and its containers, by purchasing the holding of the "Mena Pak" company which operates in Ukraine. This year "Klaipėdos kartonas" plans to invest about 15 million Lt in the modernization of the production in Klaipėda and in the company in Ukraine.
The general director of the "Klaipėdos kartonas", Arūnas Pasvenskas says that the investment in the production of honeycomb which is widely used in the furniture and constructing industry was settled after the thorough analysis of the situation in the domestic market and signing the letters of intent with the potential buyers of the production. "Up to now local producers used to buy honeycomb from foreign suppliers, therefore “Klaipėdos kartonas”, by offering this product to the domestic market will have an advantage of lower transportation costs" - says A.Pasvenskas.
According to him, the equipment bought from USA producers is modern, the similar lines are installed in Belgium and Russia.The specialists of the "Klaipėdos kartonas" very quickly assimilated information about a new equipment helping the production representatives from USA, and after three days from the equipment’s presentation the experimental production batch was made. The new line was bought using the company’s own funds without having to loan from the bank.
It is expected that the assimilation of the new production will improve company’s financial profit rate which this year is better than it was expected in the beginning of the year. Over the first six months of this year "Klaipėdos kartonas" has sold production worth 58,9 million Lt. It is 21 per cent more than during the same period in 2006, when sales were seeking  48,6 million Lt. "Klaipėdos kartonas" exports 70 per cent of the production to foreign countries. .
"Our production grows steadily, however, such a large growth in turnover is also connected with the price increase" - states A.Pasvenskas.
According to him, three years ago the prices in paper industry reached its lower limit; in West Europe several cardboard factories were closed. This year the prices also increase because of the energy resources that became more expensive, and in Lithuania the increasement of  wage also makes an impact.  
If the situation remains stable, over the year the company’s sales can reach the limit of 120 million Lt. In 2006 the company’s turnover was 97 million Lt.
"This year we will continue the cardboard machine modernization in Klaipėda, therefore in October the machine will be stopped, also large investment projects are foreseen in Ukraine", - enumerates the plans the Head of the "Klaipėdos kartonas", A.Pasvenskas.
It is planned to install new cardboard mass water releasing equipment in Klaipėda, which not only allows improving the quality of the production, but also increases the effectiveness of the cardboard production machine. In autumn a new corrugated cardboard and its containers’ production lines (annual capacity will seek 50 million square meters over the year) will be installed and will start working in the company "Mena Pak". If needed, the capacity of corrugated cardboard and its containers production in Ukraine will be increased up to 100 million square meters over the year.
Edgaras Valeckas
The project director of the JSC "Press club"