Author: Gunita Krilova

Eco Baltia intends to acquire up to 100%of JSC DAUGAVPILS SPECIALIZĒTAIS AUTOTRANSPORTA UZŅĒMUMS

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Eco Baltia, the largest environmental resource management and recycling group in the Baltics, has submitted a merger notification to the Competition Council of the Republic of Latvia (the “CC”) in order to obtain permission to acquire 56,2% of the shares of the Latvian road maintenance company JSC (AS) DAUGAVPILS SPECIALIZĒTAIS AUTOTRANSPORTA UZŅĒMUMS (“Daugavpils Spec. ATU”).   After the completion of the transaction, which is planned to be executed through Eco Baltia’s subsidiary, Eco Baltia vide, the group will hold 96.6% of the shares. However, group is interested to increase this stake up to 100%.

In Aprils of this year, Eco Baltia vide acquired 40.40% of the shares in Daugavpils Spec. ATU from the Daugavpils City Council and the Latvian State. The remaining shares are owned by private individuals.

Jānis Aizbalts, Chairman of the Management Board of Eco Baltia vide, commented:

“Considering our experience in road management gained over many years, we have experienced a breakthrough over last year and this year. Last year, we expanded Eco Baltia’s portfolio with the acquisition of Pilsētas Eko Serviss, a local road maintenance company in Riga which was added to Eco Baltia vide. This year we are further strengthening our presence in Daugavpils, Latvia’s second largest city. Our experience has resulted in an efficient and financially attractive assortment of services provided by the private sector.  It promotes healthy competition in the sector, improving service quality and introducing sustainable technological solutions.”

The same way as after the acquisition of the shares owned by the state and the local government, Daugavpils Spec. ATU will continue to provide its daily services as usual. No changes are planned to the existing cooperation agreements and arrangements for the customers, partners and employees of the parties involved in the transaction.

About JSC (AS) DAUGAVPILS SPECIALIZĒTAIS AUTOTRANANSPORTA UZŅĒMUMS

DAUGAVPILS SPECIALIZĒTAIS AUTOTRANANSPORTA UZŅĒMUMS was founded in January 1973. The company manages waste in municipalities in the Latgale region, provides street cleaning and maintenance services in Daugavpils and provides transport services. In 2023 “Daugavpils Spec. ATU” had an audited turnover of EUR 5,5 million. The company had 98 employees.

About LTD (SIA) Eco Baltia vide:

Eco Baltia vide is an environmental management company providing a wide range of environmental management services – municipal and sorted waste collection, packaging waste management, construction and bulky waste management, area cleaning and road management, as well as various seasonal services. In 2023, Eco Baltia vide closed the year with an unaudited turnover of almost EUR 54 million.

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.