Month: October 2024

Eco Baltia has completed the acquisition of the hazardous waste collection and processing company Eko Osta

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The largest environmental resource management and recycling company in the Baltics, JSC (AS) Eco Baltia, has finalized the acquisition of 100% of the capital shares of Latvia’s leading hazardous waste collection and processing company, Ltd. (SIA) Eko Osta, thereby expanding its range of environmental services.

Eco Baltia Chairman of the Board, Māris Simanovičs, stated: “The inclusion of a hazardous waste collection and processing company in the Eco Baltia group is a significant step towards expanding our range of services and realizing our development strategy by incorporating more types of waste into our management portfolio for recycling. The acquisition of Eko Osta opens new possibilities for the country to ensure a more effective waste management cycle in segments where meeting regulatory standards has previously been challenging. We are pleased with this transaction, which will enable us to provide an even broader and higher-quality service range to Eco Baltia group clients.”

Eko Osta specializes in waste management and recycling, collection, transportation, purification, and processing of oil-contaminated water, environmental remediation, and quality monitoring. Additionally, the company handles waste generated by ships, including the treatment of oil waste collected in the ports of Riga, Skulte, Salacgrīva, Engure, Lielupe, and Mērsrags. As part of the waste management services provided by Eko Osta, various types of hazardous waste are collected, transported, and managed.

The acquisition was carried out through Oil Recovery, a subsidiary of the Eco Baltia Group company Latvijas Zaļais punkts.

Following the transaction, Eko Osta has become one of the environmental management sector companies within the Eco Baltia group, specializing in hazardous and environmentally harmful waste management. No changes are planned for the existing contracts and collaborations with clients, partners, and employees of both parties.

31.10.2024.

One of the largest PET bottle processing plants in Northern Europe has been opened in Latvia

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On October 23, the new factory of AS “ITERUM” (formerly “PET Baltija”) was opened in Olaine – one of the largest in Northern Europe with a planned processing capacity of 80,000 tons per year, or about 30% more than it was possible to provide at the company’s previous production facility in Jelgava. “ITERUM” has invested more than 10 million euros in the creation of the new factory, while the total investment reaches more than 35 million euros.

Taking into account the goals of climate neutrality and the “Green Deal” set by the European Union (EU), the role of waste recycling will significantly increase in its member states in the coming years. While the leading countries of the EU – Germany, Slovenia, Austria, the Netherlands, etc. – is able to recycle an average of 65% of generated waste, Latvia reaches less than 50%*.

Jānis Irbe, parliamentary secretary of the Ministry of Climate and Energy: “In the implementation of circular economy principles, first of all, we are talking about the production of high-quality and long-lasting goods. Secondly, also about the use of raw materials obtained in the waste recycling process in its production. The circular economy model for the economy comes with challenges, but also opportunities to turn waste into raw materials that are in demand in the market. In the circular economy, the product’s harm to the environment and also to human health is reduced throughout the product’s life cycle – from the extraction of raw materials to production, packaging and transportation, all the way to the consumer. Not forgetting about waste recycling. The new production plant is a vivid example of how to turn waste into a valuable resource in the circular economy. The circular economy must become the basis of the European economy.”

Continuing to expand the full-cycle circulation of waste in Latvia and beyond, the PET bottle recycling company “ITERUM” of the largest environmental resource management and recycling company group in the Baltics “Eco Baltia” opens a new factory in Olaine. The newly opened factory will be one of the largest and most modern PET processing plants in Northern Europe and one of the largest industrial buildings in Latvia, with a total indoor area of ​​approximately 30,000 square meters and an outdoor area of ​​approximately 40,000 square meters.

JSC “Eco Baltia” board chairman Māris Simanovičs: “The creation of the new “ITERUM” factory is one of the most ambitious development projects of “Eco Baltia” in recent years, the main goal of which is to increase the production capacity of PET granules and provide the necessary conditions for further development, strengthening our market share on the European market. In recent years, we have implemented a rapid course of development of “Eco Baltia” companies in the Baltics and beyond, and along with organic growth, we have acquired several companies to expand our range of services. The new factory of “ITERUM” will be a significant step forward in the group’s growth, providing three times more production capacity than ten years ago and 30% more than was possible at the production facility in Jelgava. This will allow us to significantly increase the fulfillment of the goals set by the EU.”

The project complies with the highest energy efficiency indicators. The building complies with the sustainable construction standard BREEM®, it will fully use energy obtained from renewable resources. Wastewater treatment equipment, unique in Latvia, has been installed in the factory, which allows to significantly reduce the consumption of chemicals in the process of wastewater treatment. An efficient air recuperation system has been created, which also provides that the excess thermal energy generated in the PET melting process will be used for heating the building. The new factory will have more than 250 jobs, with a special focus on employee well-being and the sustainability of the working environment.

Jūlija Zandersone, the chairman of the board of JSC “ITERUM”, says that sustainability is one of the main pillars of the factory’s operation, while at the same time prioritizing the quality of the final product, which the Latvian manufacturer can offer on the international market: “Almost 100% of our production is exported. The main sales countries are Lithuania, Germany, Finland, Poland and other regions of the world. Although Latvia is territorially small compared to other European countries, we can be proud that in terms of PET processing with high-quality production, we are able to reach up to 5% of this market share. We believe that the new “ITERUM” factory is a new step for the further development of PET recycling, aiming to increase its market share even more.”

The “Eco Baltia” project was implemented with the support of “INVL Baltic Sea Growth Fund” and in cooperation with domestic industrial park developer SIA “Piche”. In turn, equipment suppliers are among the distributors of the most modern solutions, one of which is the Austrian manufacturer “Starlinger”. In Europe, equipment of this level has been installed in only two production plants, but in the world – ten. Thus, the plant will also be technologically one of the most modern PET processing plants in Europe and the world.

*The latest “Statista” data on the amount of recycled waste in 2022 in the countries of the European Union.

23.10.2024.

Ecoservice, a Lithuanian company owned by Eco Baltia, sues Compensa for more than a year’s delay in paying compensation

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Ecoservice, the Lithuanian environmental services company of Eco Baltia, the largest environmental resource management and recycling group in the Baltics has brought an action before the Riga City court demanding the insurance company Compensa Vienna Insurance Group ADB, Latvian branch, to fulfil its obligations and to pay out the insurance indemnity for the damage suffered by Ecoservice as a result of a fire. The fire that broke out on 5 August 2023 in the company’s waste sorting centre caused widespread damage, destroying the buildings, the waste sorting equipment and part of the inventory.

Ecoservice’s application submitted to the court states that the Latvian branch of Compensa unreasonably delays the decision on the insurance claim. More than a year after the accident, the insurance company not only does not take a decision on whether the accident should be declared insured, but also does not take a decision on whether to pay the full or partial indemnity.

In this claim, Ecoservice seeks a payment of €7.4 million in insurance indemnity and interest for late payment. The company is also finalising the calculation of the losses it suffered when it had to partially suspend its operations after the fire. This amount will be added to the claim when it becomes clear. This could increase the claimed amount to more than €10 million.

Compensa’s conclusions are not forthcoming

“The fire happened last year, but Compensa has not yet decided whether to recognise it as an insured event, even though the Department of Environmental Protection and the Department of Fire Protection and Rescue carried out investigations and established the essential circumstances, so the situation is more than clear. Despite our sorting centre being insured, Compensa’s unreasonable delays have prevented us from restoring our previous operational capacity. This creates serious challenges because, despite the insurer’s refusal to pay the insurance indemnity, our waste management obligations remained the same after the fire. We must fulfil our obligations, otherwise there could be serious environmental consequences”, comments Jurgita Nacevičienė, Manager of Ecoservice.

According to her, the company is currently forced to rebuild capacity with its own funds. This makes it more difficult to operate and hampers development, as it has to redirect part of its own working capital, as well as money planned for strategic business development projects. It is estimated that the ongoing reconstruction of the sorting centre will require a total of EUR 18 million.

Māris Simanovičs, chairman of the board of AS “Eco Baltia”, points out that the stability of the company is based on timely decision-making: “Any changes can have a significant impact on the future development of the company, especially when it comes to restoring operations after an accident. In view of this, we take the firm decision to insure such risks in advance and expect insurers to honour their commitments. This was highlighted by the summer storms and subsequent floods which affected many people and businesses. Insurers must fulfil their obligations within the legal framework by paying compensation without undue delay, regardless of the amount.”

A pre-trial investigation is ongoing

After the fire, Ecoservice found the right solutions and was able to quickly restore its operations. This led to a significant reduction in the fire loss and thus in the final insurance indemnity amount, as the company had also insured for business interruption.

According to Nacevičienė, Ecoservice ensured close cooperation with the insurer from the very first days of the fire, and all the necessary materials available to the company were promptly provided to the insurer. Compensa seems to be intentionally dragging out the process by quoting aspects with little relevance for the insurance case as an excuse not to adopt the decision on whether Ecoservice is entitled to receive the insurance indemnity.

First, the insurer questioned the legality of the awning hangar, even though it had insured the hangar and received the insurance premium payment for it. Then, the insurer mentioned potential nonconformities regarding the height of the waste pile in the yard and the amount of waste stored there, although the competent authorities have expressly stated that no violations were found.

After, it was an excuse about inability to adopt decision while a pre-trial criminal investigation related to the fire is not concluded, although it has a completely different scope and targets.

Ecoservice has been waiting for more than a year for a decision from the insurer and cannot delay any longer. Especially since meetings with the insurer’s representatives no longer allow for positive and constructive cooperation with Compensa.

As the insurance contract was concluded with Compensa’s branch in Latvia, after reaching an impasse in the negotiations with the insurer, Ecoservice filed the claim to the Riga City Court.