Grigiskes AB
Notification on material event GRIGISKES AB: plans for the year 2013

Vilnius, Lithuania, 2013-01-11 09:05 CET (GLOBE NEWSWIRE) -- The Board meeting on January 10, 2013 approved budget for the year 2013.

It is planned that the Group which consists of companies GRIGISKES AB, Baltwood UAB, Klaipedos kartonas AB, Klaipeda Recycling UAB, Mena Pak OAO and Klaipeda recycling UAB in the year 2013 will reach a turnover of LTL 330 Mio. (EUR 95.6 Mio), which is by LTL 40 Mio (EUR 11.6 Mio) or 13.8% over the expected turnover of 2012. The Group's profit before taxes will reach LTL 13.4 Mio (EUR 3.9 Mio) and will be by LTL 3% higher than it is expected for the year 2012.

It is also planned that GRIGISKES AB in the year 2013 will reach a turnover of LTL 148 Mio (EUR 42.8 Mio) and will be higher by LTL 37 Mio (EUR 10.7 Mio) than it is expected for the year 2012. The company will earn a profit before taxes of LTL 7 Mio (EUR 2 Mio) which will be by LTL 2.5 Mio (EUR 0.7 Mio) less than it is expected for the year 2012.

The activity of the year 2013 will be focused on the development of the hygienic paper and corrugated cardboard and related products sales in Lithuania and foreign markets. In planning the activities for the year 2013 tendencies of the marked were evaluated.

Also, there is no doubt that the achievement of approved objectives will supported by the implementation of the program of investments to development of the base of production. In the year 2012 the new corrugated cardboard production plant, sheet towel and paper handkerchiefs production lines started to work. Currently new paper processing line starts to work too.In total investments in the mentioned objects will amount LTL 33 Mio (EUR 9.6 Mio). 

In order to expand sales and increase the competitiveness of the products in 2013 the Group will continue its investment program. As it is already mentioned in previous reports on the material event, the Group will invest LTL 30 Mio (EUR 8.7 Mio) to two biofuel boilers building in Vilnius and Klaipeda. LTL 11.95 Mio (EUR 3.5 Mio) of this amount will be the Cohesion Fund support.

In addition to that in 2013 it is expected to launch a new investment project of paper machine No. 6.

These forecasts are not audited.

         Gintautas Pangonis
         President of GRIGISKES AB
         (+370-5) 243 58 01



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