Month: March 2023

According to the unaudited consolidated annual report, the largest environmental management and recycling group in the Baltics, AS Eco Baltia, in 2022 achieved record-high consolidated net turnover to date, reaching €210.79mn. This represents a 75.7% increase compared to 2021, when consolidated net turnover was €120.0mn. Eco Baltia’s pro-forma revenues (which account for the full-year effect of the newly acquired companies within the financial year) reached €240mn, growing by 60% compared to €150.0mn pro-forma revenue in 2021. Growth in revenues is attributed to a combination of factors, including the acquisitions of Ecoservice in 2021 and TESIL Fibres in September 2022, favorable market conditions for PET and plastic recycling business segments in first half of 2022, stable and growing business in the environmental management segment and focus on productivity and efficiency.

In 2022, Group’s consolidated net profit was €7,31mn. Net profit in 2021 was €9,33mn. In reporting period consolidated EBITDA reached €25,47mn in comparison of €19,9mn in 2021.

Māris Simanovičs, Chairman of the Board at Eco Baltia, commented: “Despite the challenging geopolitical landscape that has impacted businesses worldwide, we achieved record-breaking results in 2022 with a consolidated revenue of €210,79mn and pro-forma revenue of €240mn. This dynamic growth was driven by our strategically implemented M&A deals, as well as strong performance in environmental management, PET and plastics recycling. Our dedication to the circular economy, productivity, and efficiency enabled us to navigate the challenges of the global and local business sentiment and rapid growth of production costs. In 2023, we will keep our commitment to invest in further development – both through M&A deals and capital investments in productivity, sustainability, and production capacity.”

In 2022, Eco Baltia’s companies in both business segments – PET and plastic recycling and environmental services – continued dynamic and vertically integrated growth in accordance with the long-term strategy. During the reporting period, Eco Baltia subsidiaries concluded several acquisitions to strengthen their positions in the international market and to expand services offered by the group’s companies. In 2022, Eco Baltia’s PET and plastic recycling segment companies generated €99,58mn consolidated net revenues, while environmental segment €111,21mn.

In September 2022, Eco Baltia’s subsidiary PET Baltija completed the acquisition of 100% of shares of a leading Czech polyester fiber producer, TESIL Fibres. Also, in September 2022, Eco Baltia’s environmental management company in Lithuania, Ecoservice, acquired 100% of shares of the liquid waste management company Mano Aplinka plius UAB. In January 2023, Latvian Eco Baltia vide completed the acquisition of the road and street maintenance company Pilsētas Eko Serviss.

PET Baltija continued its investments in production expansion set to more than triple the existing food-grade rPET capacities. Its new factory in Latvia, Olaine, is now under construction, and production is planned to gradually start in 2023. The plastic packaging recycling company Nordic Plast also continued organic growth in the reporting period, supported by investment in production capacity. In the beginning of 2023, Nordic Plast with €2.8mn investment completed the modernization project (installed new automated sorting line) to increase production capacity up to 29%.

In 2022, Eco Baltia’s environmental management segment demonstrated stable growth, expanding the business portfolio and services provided by the group’s companies. In the reporting period, Eco Baltia launched and introduced a new service to the market – portable toilets branded as Tōcha. Both in Latvia and Lithuania, the environmental management companies continued to invest in construction debris sorting and management fields. Ecoservice made around €0.7mn investments to broaden and improve the existing construction debris sorting field, while Eco Baltia started construction of a new site.

Considering the high inflation and energy costs in Latvia, to support and help employees during the heating season, when living costs increase significantly, Eco Baltia and its subsidiaries in Latvia introduced a special support program for employees in December 2022. The support program included financial support for all Latvia employees (~900) for three months (Dec 2022 – Feb 2023). Each employee received a total of 300 EUR (before tax), and the total investment in this program reached ~EUR 330,000.

In 2023 investments in the PET and plastics recycling sector and environmental management will be continued, to support further growth, efficiency and competitiveness of the Group’s companies. In 2023 its planned to gradually start production in the new factory of PET Baltija in Olaine. Company’s investment in the new equipment for the new facility will totally reach over 10 million euro.

In the end of 2022, Group has decided to develop a new waste sorting plant in Latvia, in the region of Pierīga. The project will be implemented by its subsidiary in Latvia, Eco Baltia vide. The total investment in the project will amount to approximately 11 million euros, with more than half of the funds intended for the purchase of equipment. Contracts with suppliers have already been concluded. It is planned that the plant will commence operations in the first half of 2024.

Improving working conditions, supporting its employees, ensuring the highest level of labor safety, and improving ESG and sustainability are among the group’s priorities in 2023. The Eco Baltia group, providing a complete waste management cycle, is already a climate-neutral company, meaning that its operations are able to compensate for the CO2 emissions it produces. However, to strengthen this position, one of the goals for 2023 is also to renew the Eco Baltia Sustainability Strategy in line with the United Nations Sustainable Development Goals and the goal of climate neutrality. Eco Baltia and its subsidiaries are working towards resource-efficient consumption, promoting circular economy, transitioning to more environmentally friendly transportation in waste management, increasing the proportion of recycled materials in production, reducing CO2 emissions, improving working environment and employee well-being, as well as introduce social initiatives that promote public awareness of responsible resource consumption and the need for waste sorting.

The largest environmental management and recycling group in the Baltics, AS Eco Baltia, has appointed Jiří Novák as the Managing Director for its subsidiary company in the Czech Republic, TESIL Fibres, starting from March 1^st this year. To strengthen corporate governance, changes have been made to the company’s Articles of Association to establish four-member Supervisory Board of TESIL Fibres.

The newly established Supervisory Board of TESIL Fibres includes Salvis Lapiņš as Chairman, Māris Simanovičs as Deputy Chairman, and Justas Bučelis and Matīss Leitis as members. All Supervisory Board members represent the shareholders of the company. S.Lapiņš is the Chairman of the Board at TESIL Fibres parent company PET Baltija, M.Simanovičs is the Chairman of the Board at Eco Baltia, J.Bučelis is Senior Associate at INVL Baltic Sea Growth Fund, while M.Leitis is the Board Member and CFO at PET Baltija.

“We are delighted to welcome Jiří Novák as the new CEO of TESIL Fibres. He brings with him impressive experience and expertise in manufacturing and business management, which will be invaluable to strengthen TESIL Fibres production capacity and expansion into new markets. Only six months ago PET Baltija completed acquisition of the TESIL Fibres and this was busy period for all the team to ensure smooth transition process. By strengthening the management team and corporate governance structure we aim to improve business performance in more strategic way to cope with market situation, as well as challenges coming together with our company growth ambitions and take advantage of opportunities arising from the shift toward a circular economy,” says Chairman of the Board at Eco Baltia and Deputy Chairman of the Supervisory Board at TESIL Fibres Māris Simanovičs.

J. Novák is experienced professional in manufacturing and engineering, having worked in various leadership roles for over 30 years. He holds a degree in Machine Building from the University of Mechanical and Electrical Engineering in Plzen, Czech Republic. Prior to joining TESIL Fibres, Novák served as the plant director at HOCHTIEF Plc from 2021 to 2023. Before that, he was the Managing Director and CEO at Linberg Ltd. from 2016 to 2021. He has also held senior management roles in MABA Prefa Ltd., MABA Eurobeton Ltd., ACO Industries Tábor Ltd. and at Jihotvar.

J. Novák said: “I am excited to join TESIL Fibres and Eco Baltia at such an exciting and challenging time. One of my key focusses will be to conclude the transition and integration process in Eco Baltia group and ensure that company achieves business goals, greater results and improves profitability. Likewise, the strategic task is to increase production of TESIL Fibres to full capacity and expand in the new markets to bring more value to our customers, employees, shareholders and also society.”

Changes in the TESIL Fibres management team are registered in the Czech Commercial Register on March 22.

Environmental management company Eco Baltia vide’s subsidiary in Lithuania, Ecoservice, has invested 700 000 EUR in a new and the first-of-its-kind construction waste sorting line in Lithuania. This will ensure that an even larger amount of construction waste can be reused and will also increase the overall capacity of construction waste sorting. While approximately 60% of the sorted construction waste could be returned to circulation before, with the new and partially automated equipment, this proportion will increase up to 82%.

“Considering the increasing volume of construction waste and the need to ensure their reuse, within the companies of Eco Baltia, we are purposefully developing construction waste sorting possibilities and new technological solutions. Ecoservice has already completed a modernization project for the existing construction waste sorting area, installing new and more efficient equipment that will double the company’s construction waste sorting capacity. Meanwhile, in Latvia, Eco Baltia vide is developing a completely new construction waste sorting area, so that we can expand our services in more sustainable construction waste management for Latvian clients,” says Jānis Aizbalts, Head of the Environmental Management Sector at Eco Baltia.

The new equipment installed by Ecoservice is semi-automated, ensuring maximum efficiency in sorting the most common types of construction waste: cement, sand, gravel, various films and cardboard, tiles, metal, wood waste, screws, drywall, etc. The new sorting line provides construction waste sorting in 13 different categories. Separated clean rubble and gravel can be used in road and sidewalk construction, wood materials can be used as secondary raw material in various furniture details production, while metal, plastic, cardboard and films can be recycled into new secondary raw materials.

“We estimate that the Ecoservice’s construction waste sorting capacity will double thanks to partial automation and the ability to sort wider types of materials. These investments will also significantly improve efficiency – both the speed and quality of the sorting process. Our goal is to use waste as resources as effectively as possible. Previously, 60-70% of construction waste was reused and recycled, but with the new sorting line, we will increase this indicator to up to 82%, leaving only a small amount of waste that for incineration,” explains Mindaugas Šeštokas, Head of Production at Ecoservice.