Month: July 2023

In order to promote faster development of polyethylene terephthalate (PET) bottle recycling and facilitate an increase in production capacity, Kaspars Ezernieks has joined the management team of the PET bottle recycling company, JSC PET Baltija, which is part of the largest and fastest-growing environmental resource management and recycling group of companies in the Baltics, JSC Eco Baltia. He has taken on the role of Board Member and CEO.

As a Board Member and CEO of the JSC PET Baltija, K. Ezernieks will be responsible for the operational activities of the company in accordance with the Group’s strategic objectives. Mr Ezernieks will also take care of successful relocation of the existing PET Baltija’s production facility to the new premises in Olaine, implementation of the LEAN culture and the execution of plans, as well as other responsibilities for the company’s operations and development. Previously, K. Ezernieks spent thirteen years in executive positions, including at the company Stora Enso, a leading renewable products packaging, biomaterials, wood construction, and paper manufacturer and supplier, where he held the position of Director at the Latvian-based manufacturing facility in Launkalne.

Mr Māris Simanovičs, Chairman of the Board of Eco Baltia: “PET Baltija has experienced rapid growth in recent years. Despite the challenges on the international market related to the global geopolitical situation, PET Baltija achieved the highest turnover last year.  Last year, we launched one of the most influential investment projects in the company’s history, aimed at increasing PET pellet production capacity. The project involves work on gradual relocation of the current plant in Jelgava to a building currently under construction in Olaine, which will be one of the largest indoor production facilities in Latvia and PET bottle recycling plants in Northern Europe. The next steps in the company’s development, especially in these challenging times, require additional competences and approaches in various business processes, so we see the accession of the PET Baltija’s management as a huge gain on the way of achievement of our goals.”

As far as the development of the JSC PET Baltija is concerned, this year, we are planning to invest in improvement of the company’s processes and increase of efficiency, including new technologies, as well as improvement of the existing technologies, which will provide a possibility to recycle an even higher proportion of recyclable PET materials, with the largest possible share being returned to the re-circulation. This year, the company will also continue its work on the implementation of quality standards to ensure and certify food-grade material, as well contribute to increasing production volume by providing the right quality and quantity of recycled raw materials to meet the needs of potential customers.

“Since our entry the company has not only doubled in size, but became truly international. We strongly believe that the key to unlocking the full potential of the company is strong management which can devote full attention, on the one hand to strategical growth and development to continue its development and staying competitive and on the other to managing day to day operational activities to excel at efficiency and client satisfaction. Kaspars joining the team will allow to separate the strategical and operational management in the team with the goal to achieve sustainable future growth,” says Deimante Korsakaite, Partner at INVL Baltic Sea Growth Fund, Chairperson of the Supervisory Board of the JSC PET Baltija and Member of the Supervisory Board of the JSC Eco Baltia.

Thanks to efficiency and productivity improvements, active work in export markets and higher selling prices of finished products in the first half of 2022,  the net turnover of the PET recycling company JSC PET Baltija increased by 56% compared to 2021 reaching EUR 78.9 million euro last year. While the situation on the export markets was favourable in the first half of last year, allowing the company to increase turnover and production capacity, a strong drop in both demand and prices was expressly obvious since autumn, which has not prevented the company from closing the year with the best turnover indicators ever.

In general, in 2022, the JSC PET Baltija has strengthened its positions as the largest PET recycler in the Baltics with stable and growing market shares in Europe. According to the company’s estimates, it already has a market share of around 4% in the European PET recycling market.

“With almost 100% of our production exported, our performance in 2022 was significantly affected by developments in international markets. When Russia started invasion of Ukraine, the JSC PET Baltija immediately ceased cooperation with Russian and Belarusian partners and customers. Although these markets accounted for a small part of the company’s operations, thanks to timely risk management, we were able to quickly replace the flows of goods coming from these countries and find customers for the finished products in Western Europe. Thus, impact on turnover and other indicators was successfully amortised. Overall, we have continued steady development last year, focusing on increasing production capacity and improving efficiency. The main investments have been made in the purchase of new production equipment and the improvement of technological processes in the plants”, says Salvis Lapiņš, Chairman of the Board of the JSC PET Baltija.

In 2022, the JSC PET Baltija recycled 46,126 tonnes of PET bottles. This is slightly less than in 2021, when the company recycled the all-time largest amount of PET bottles – 49,726 tonnes. Decrease in the volume of raw materials recycled is partly attributable to the installation of a sorting machine for the separation of bottle labels last spring, ensuring greater efficiency in the PET flake production process. There is also a slight decrease in output of finished products, namely, a total of 54,106 tonnes were produced in 2022, compared to 54,319 tonnes in 2021. Changes in output are attributable to drop in demand and prices of finished products in the second half of 2022, when the market was strongly affected by the energy price crisis and supply risks, recession risks and rising inflation.

On 1 February last year, a deposit system for beverage packaging was introduced in Latvia. The JSC PET Baltija is a shareholder of the LLC “Depozīta Iepakojuma Operators” enduring recycling of all the PET bottles transferred within the Latvian deposit system. In effort to promote the circular economy and efficient use of resources, last year, the JSC PET Baltija ensured recycling of 2,727 tonnes of PET bottles, which were handed over to the Latvian deposit system.

Continuing its strategic development and expansion of production capacity, especially in the segment of recycled materials of food-grade packaging, in mid-2022, the company started development a project for the construction of a new production facility in Olaine in cooperation with the industrial buildings builder and developer LLC Piche. Equipment for the new production unit intended for the production of food-grade packaging PET pellets has also been ordered. The project is scheduled for implementation in several phases. The total area of the building will be approximately 26,250 m²and it will be one of the largest industrial buildings in Latvia. Investments of the JSC PET Baltija in the new equipment will total more than 10 million euro.

Within the framework of its international expansion, in September 2022, the JSC PET Baltija acquired TESIL Fibres, the leading Czech producer of polyester fibres, which also uses recycled PET flakes in production, thus ensuring also production of the final product – polyester fibre – within the Eco Baltia Group.

Work on our strategic development will continue also this year, strengthening our competitiveness in international markets and, where possible, expanding our position as a processing company at European level. In the course of future development, it is planned to invest in improving the company’s processes and increasing efficiency, including new technologies, as well as in upgrading existing technologies, which will enable an even higher proportion of purchased recycled polymer materials to be recycled, with the maximum amount of these materials being returned to the re-circulation.

This year, the company will also continue work on the implementation of quality standards to ensure and certify food-grade material, as well as to increase production volumes by providing the right quality and quantity of recycled raw materials to meet the needs of potential customers.

Saulius Budrevičius, the longstanding CEO of Lithuania’s prominent environmental management company, “Ecoservice”, has assumed a position on the board of board members at JSC “Eco Baltia”. As the largest and rapidly expanding group specializing in environmental resource management and recycling in the Baltics, “Eco Baltia” continues its dynamic growth under the stewardship of the board members, including Chairman of the Board Māris Simanovičs, and board members Santa Spūle and Sigita Namatēva. This strategic addition of S. Budrevičius to the board further bolsters the company’s accelerated expansion not only in the Baltics but also throughout Europe.

Māris Simanovičs, Chairman of the Board of JSC “Eco Baltia”, informs: ” Despite the prevailing challenges in the global secondary raw material market in recent years, we have made remarkable strides in the development of the “Eco Baltia” company group, even surpassing historical records by achieving the highest consolidated revenue figures last year. Significant investments are planned for the development of the group in the environmental management and recycling sectors this year and in the upcoming years. Moreover, we are actively assessing potential mergers and acquisitions of new companies in wider global markets. This juncture underscores the increased significance of professionals with international expertise in our organization. Consequently, we have forged an agreement with an esteemed industry expert who has demonstrated exceptional accomplishments in establishing and advancing a prominent environmental management company in Lithuania. This collaboration aims to drive the comprehensive development of the “Eco Baltia” group. “

Within the board of JSC “Eco Baltia”, S. Budrevičius will be responsible for research and development, as well as the implementation of various investment projects. Currently, S. Budrevičius also holds positions on the board of the subsidiary company LLC “Eco Baltia vide” and UAB “Ecoservice” as part of JSC “Eco Baltia” group. Prior to joining the company group, he gained over 15 years of experience as the CEO of “Ecoservice” in Lithuania and was a co-owner of UAB “Ecoservice.”

As a member of the board of JSC “Eco Baltia”, S. Budrevičius assumes the responsibility for overseeing research and development initiatives, as well as the successful implementation of various investment projects. Notably, S. Budrevičius also holds positions on the board of the subsidiary company LLC “Eco Baltia vide” and UAB “Ecoservice”, both integral parts of the JSC “Eco Baltia” group. Prior to joining the company group, S. Budrevičius amassed over 15 years of invaluable experience as the CEO of “Ecoservice” in Lithuania and served as a co-owner of UAB “Ecoservice”.

Saulius Budrevičius, board member of JSC “Eco Baltia”, stated: “ Already two years ago, when “Eco Baltia” acquired the leading Lithuanian company “Ecoservice,” we saw great potential for the development of these companies both in the domestic market and on an international scale. Through my years of experience, particularly in the establishment and expansion of an environmental management company in Lithuania, I have gained comprehensive expertise in diverse business operations. I am delighted to join “Eco Baltia” and eagerly look forward to leveraging my experience in driving the successful execution of new development projects and exploring untapped markets.”

The main goals of the Eco Baltia group in the upcoming years are related to the implementation of existing and new investment projects. In 2023, Eco Baltia continues to invest in the recycling and environmental management sectors, as well as plans to gradually start production in the new “PET Baltija” plant in Olaine, tripling the PET production capacity while reducing the increasing energy and labour costs. In the ongoing year, the group remains dedicated to fostering inter-company collaboration through the introduction of novel services and enhancing full-cycle waste management processes. Furthermore, investments will be allocated towards enhancing the qualifications of employees, improving working conditions, prioritizing occupational safety, and promoting employee well-being. Additionally, the group is committed to implementing sustainable practices and adhering to socially responsible and governance policies, thereby ensuring a comprehensive approach to corporate responsibility within the company.

Vytautas Plunksnis, Partner of INVL Baltic Sea Growth Fund and Chairman of the Eco Baltia Board, commented: “Since INVL Baltic Sea Growth Fund invested in Eco Baltia in 2020, we have witnessed the remarkable strides in company’s. This progress has been achieved through a combination of organic growth and strategic acquisitions, such as the inclusion of “Ecoservice” in Lithuania and “Tesil Fibres” in the Czech Republic. Strengthening market positions in the Baltics and further European regions, there is already a significant benefit from close cooperation, knowledge sharing, and exchange of expertise among all “Eco Baltia” group companies. The addition of international expertise to the “Eco Baltia” board is the next step in pursuing new development goals and further accelerating the company’s global growth.“