Author: Gunita Krilova

Eco Baltia Group’s Lithuanian company, Ecoservice, opens the most advanced separately collected packaging sorting centre in the Baltics

---

Ecoservice, the largest environmental management company in Lithuania and part of the Eco Baltia Group, has officially opened the most advanced and largest separately collected packaging sorting centre in the Baltic region. With an investment of around EUR 18 million, the new facility features cutting-edge artificial intelligence solutions that can identify and sort 13 types of packaging, nearly doubling operational efficiency.

“This new centre embodies our commitment to waste management. We are not just sorting waste – we are building infrastructure to help Lithuania embrace the circular economy and create a more sustainable future for all. Our goal for the coming years is to increase the company’s efficiency and thereby contribute to its faster development in the Baltic market,” said Jurgita Nacevičienė, CEO of Ecoservice.

Luminor Bank provided EUR 12.6 million in financing for the implementation of this project. The rest is financed from the Eco Baltia Group’s own resources.

“This project is vital for enhancing Lithuania’s circular economy infrastructure, reducing waste and promoting recourse efficiency. By enabling the development of such technologically advanced facilities, we are actively participating in building more sustainable future for our communities”, said Vytis Žegužauskas, Head of Corporate banking at Luminor.

Development and new plant

Completed in just 18 months, the new sorting centre marks the largest investment in Ecoservice’s 30-year history. It was rebuilt on the site of the previous facility, which was destroyed by fire in 2023. The new plant is designed to process up to 12 tons of waste per hour and 300 tons per day, increasing operational efficiency by 1.5 times and significantly improving the quality of recyclable materials.

The facility is equipped with state-of-the-art technology, including nine AI-driven optical separators capable of identifying and sorting different materials with 85% accuracy, as well as four high-powered magnets for efficient metal detection. These enhancements are expected to increase the recovery of recyclable materials by 15–20% compared to the previous facility. To ensure safety, the centre now features the only certified thermal imaging fire detection system in the Baltics, exceeding current fire safety standards.

“This is the third Eco Baltia Group facility to open in the Baltics within just five months. Despite the challenges posed by the insurer Latvian branch of Compensa Vienna Insurance Group and its prolonged delays in fulfilling contractual obligations, we have achieved our business objectives. This success demonstrates Eco Baltia’s stability and ability to grow even in challenging circumstances. The new facility will enable us to make a significant contribution to the circular economy across Europe,” says Māris Simanovičs, Chairman of the Management Board of Eco Baltia.

Ecoservice tackles insurer Compensa’s defaults

Company reminds that on 5th August in 2023, a devastating fire broke out in the waste sorting plant in Vilnius. It caused extensive damage, destroying the building, waste sorting equipment, part of the inventory and partially shutting down the plant. Despite this catastrophic event, the Latvian branch of Compensa Vienna Insurance Group (part of Vienna Insurance Group), the company‘s insurer, has unacceptably delayed any decision on compensation for over a year and the half.

„Hiding behind endless bureaucracy, excessive document demands, and redundant expert reviews, Compensa has effectively abandoned its obligations. This has forced us to finance the entire reconstruction from our own resources and external funding. This is totally unacceptable and hampers not only the development of the company and the industry, but also the implementation of national waste reduction standards. We are grateful to Eco Baltia Group and Luminor Bank for supporting this crucial project, enabling us to resume operations altogether,“ said Nacevičiene.

Determined to hold Compensa accountable, Ecoservice filed a lawsuit with a total claim of €13.6 million. Ecoservice remains resolute in demanding full compensation and will pursue all legal avenues necessary to expose this disgraceful negligence.

Eco Baltia Group’s turnover reaches EUR 192.12 million in the first nine months of the year

---

The Eco Baltia Group, the leading environmental resource management and recycling group in the Baltics, continued its steady growth in the first nine months of the year. For the reporting period the group reported a net turnover of EUR 192.12 million, representing a 19.2% increase compared to the same period last year. This growth was mainly driven by acquisitions made in recent years, a strong performance in the environmental management sector and focused efforts to increase automation and productivity across the Group’s companies.

The Group’s profit before tax for the reporting period was EUR 9.6 million, compared to EUR 0.24 million in the same period last year. Meanwhile, consolidated EBITDA reached EUR 36.07 million in the first nine months, an increase of 87.6% compared to the same period last year.

Māris Simanovičs, Chairman of the Management Board of AS Eco Baltia, commented:
“This year, the environmental resource management and recycling sector faced both growth opportunities and challenges. However, the results achieved confirm the sustainability of our business model and our ability to adapt to these challenges. One of Eco Baltia’s priorities has been to expand its business and service portfolio. Furthermore, this year, we have emphasized long-term development through investments in the establishment of new, modern facilities, the ‘greening’ of our transport fleet, and the digitization and automation of processes. These investments will not only help maintain our leading position in the Baltics but also drive the group’s sustainable growth in international markets.”

Sectoral developments and strategic investments

In the first quarter of this year, Eco Baltia Group continued its development in both the waste management and recycling sectors. At the beginning of the year, the group acquired a 40.4% stake in DAUGAVPILS SPECIALIZĒTAIS AUTOTRANSPORTA UZŅĒMUMS (Daugavpils Spec. ATU), expanding its service coverage in Latvia. In addition, the Group’s subsidiary Eco Baltia vide, as part of an association of persons, was awarded a contract to provide road maintenance services in the Latgale suburb and Central district of Riga for the next seven years, with a total contract value of EUR 77.4 million (excluding VAT). During the reporting period, work began on the acquisition of Eko Osta, which was finalized in October this year. The activities continue on the acquisition of the major stake of shares of Daugavpils Spec. ATU, with a merger notification submitted to the Competition Council in December.

Eco Baltia Group has also carried out significant infrastructure development projects this year, including investments of EUR 2.3 million in construction of waste sorting and recycling facilities in Rumbula and Liepāja. In the third quarter, Eco Baltia vide completed a new state-of-the-art waste sorting facility, the Resource Management Centre, with an investment of over EUR 11.7 million. The plant was inaugurated in October. Shortly afterwards, ITERUM (former name PET Baltija) opened its new PET bottle recycling plant, one of the largest in Northern Europe. The total investment amounts to more than €35 million, of which more than €10 million is contributed by “ITERUM”.

In Lithuania, the group investing EUR 18 million in the reconstruction of a waste sorting center in Vilnius, strengthening the implementation of circular economy principles in the Baltic States.

Focus on sustainability and employee well-being

“This year we have placed a strong emphasis on implementing and integrating sustainability strategies across Eco Baltia companies and on employee wellbeing. We invest approximately EUR 1 million a year annually in employee well-being, which includes skills development, training, insurance in order to increase Eco Baltia employers brand awareness. At the same time, given the labour shortage, we are taking steps towards automation and digitalisation to increase the efficiency and competitiveness of daily operations,” said M. Simanovičs.

As Eco Baltia’s operations are aligned with the principles of the circular economy and incorporate various sustainable business practices, efforts continued during the reporting period to implement a consolidated ESG (Environmental, Social and Governance) strategy across the Group’s main subsidiaries. The company also focused on improving workplace safety and internal culture by strengthening LEAN practices, promoting employee well-being, encouraging personal growth and developing new skills.

Latvia’s leading hazardous and environmentally harmful waste collection and recycling company, Ltd. (SIA) Eko Osta, which was fully acquired this year by JSC (AS) Eco Baltia, has been merged with Oil Recovery as of December 28 following a reorganization and will continue operations under its new name.

The acquisition of Eko Osta in October of this year was carried out through Eco Baltia group’s subsidiary Latvijas Zaļais punkts and its affiliated company, Oil Recovery. In December, a reorganization was completed, merging Eko Osta and Oil Recovery into a single entity that will continue operations under the “Oil Recovery” brand. The newly unified company will maintain its existing services in hazardous and environmentally harmful waste management. No changes are planned for the existing cooperation agreements and commitments with clients and partners.

Jānis Aizbalts, Head of the Environmental Sector at Eco Baltia Group, stated:
“Environmental sustainability is a continuously evolving process. We strive to offer a broader and more diversified portfolio of waste management and recycling services. Integrating a hazardous and harmful waste management company into the Eco Baltia group has allowed us to significantly expand our service offering, particularly in areas that have previously been challenging to address on a national scale.”

Oil Recovery (formerly Eko Osta) specializes in hazardous and environmentally harmful waste management and recycling, including the collection, transportation, treatment, and recycling of oil-contaminated wastewater, as well as environmental remediation and quality monitoring. The company also manages ship-generated waste in key Latvian ports, including Riga, Skulte, Salacgrīva, Engure, Lielupe, Mērsrags, and Roja, specifically focusing on the treatment of oil-related waste. Additionally, Oil Recovery collaborates with producer responsibility systems in Latvia, ensuring compliance with national regulations for the collection and recycling of hazardous and environmentally harmful waste.

Nauris Bertmanis, Chief Executive Officer of Oil Recovery, states: “Our goal is to establish this company as a stable and sustainable leader in the industry. The first steps include rebranding to align the company’s identity more closely with the international market – a key focus of our long-term strategy. Building on the services previously provided by Eko Osta, we plan to significantly expand our activities in the management of polluted water and the recycling of used oils under the Oil Recovery brand. To achieve these goals, we expect to invest approximately €1 million over the next year.”

About Oil Recovery (formerly Eko Osta)

Oil Recovery (formerly Eko Osta) is a leading hazardous and environmentally harmful waste management and recycling company. Originally established as Eko Osta in 1999, the company was reorganized and renamed Oil Recovery in 2024 following its acquisition by Eco Baltia. The company employs over 50 professionals, and its 2023 revenue reached €7.8 million.