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The environmental management company Eco Baltia vide LTD (SIA) closed last year with a turnover of EUR 49.32 million, which is 44% more than in 2021. The increase in turnover was mainly driven by the development of new environmental management services and an increase in recycling sorting capacity. The company has invested heavily in expanding its range of services and improving its sorting and recycling infrastructure.

At the end of 2022, Eco Baltia vide LTD (SIA) provided municipal and sorted waste services in 17 regions of Latvia. As the company’s main activity is sorting and recycling of secondary raw materials, last year almost a third or more than 30% of the waste managed was reused or recycled. In line with the company’s development and sustainability strategy, this volume is increased every year. 

The company has also invested substantially in its development. EUR 1.8 million were invested in the renovation and extension of the fleet, while EUR 1.13 million were invested in the creation of a specialised construction waste sorting yard, where investments will continue later this year. At the end of last year, a decision was also taken to develop a new waste sorting plant in the Pierīga region, with a total investment of around EUR 11 million. More than half of these are for the purchase of equipment.

In 2022 the company’s Eco Baltia vide LTD (SIA) profit was down by 8%, to EUR 5.5 million, partly due to last year’s reorganisation, when several other subsidiaries of the Group, Eco Baltia JSC (AS), were merged into the company.

“Despite the extremely high inflation, last year we continued to implement our development strategy by developing availability of secondary raw materials, sorting infrastructure, and increasing our competence in management, sorting and recycling of secondary raw materials. We are committed to developing a wide range of environmental management services and investing in new ones. One of our most successful innovations in the market is the rental and servicing of portable toilets under the Tōcha brand, but we have also been actively working on developing a sorting infrastructure and launching new services,” says Jānis Aizbalts, Chairman of the Board of Eco Baltia vide LTD (SIA).

In 2022, Eco Baltia vide LTD (SIA) in cooperation with Latvijas Zaļais punkts LTD (SIA) expanded the infrastructure for separate collection of textiles, providing 170 containers in 30 municipalities in the first months of 2023. Given the relatively high costs of textile management and sorting, as well as the fact that Latvia still does not have a producer responsibility system (PRS) for textiles, in autumn 2022 a decision was taken to stop sorting textiles in the Tukums branch and to provide the entire sorting process in the sorting centre of the cooperation partners in Riga. This has made logistics more efficient and cost-effective, so that we can continue to invest in infrastructure development and access to the textile sorting service for citizens. Last year, a total of 1,568 tonnes of textiles were placed in the textile sorting containers provided and managed by the company, 98% of which were reused or recycled.  

Last year, cooperation was also developed with UAB Ecoservice, a subsidiary in Lithuania, which acquired UAB Mano Aplinka Plius, a liquid waste management company. It provides services such as oil and fuel tank cleaning, oil and other natural waste management and collection equipment maintenance, sewage disposal, pipeline flushing and emergency response to various liquid waste spills. With the acquisition of UAB Mano Aplinka plius, additional investments in sewage management, road cleaning and maintenance services, as well as recycling technologies are planned for this year in both Lithuania and Latvia.

The development of the construction waste sorting site is also continuing this year. Construction waste sorting will also be developed in the branch in Liepāja and in Lithuania, where the subsidiary UAB Ecoservice has set up a new line for sorting construction waste. The new waste sorting plant project will also be continued and the plant is expected to be operational in the first half of 2024, sorting waste from the Pierīga region managed by the company. 

Another priority for this year is the development of a Sustainability Strategy, including for subsidiaries in Latvia and Lithuania, taking into account the UN Sustainable Development Goals.

In 2023, the company will continue to boost productivity. The working environment and safety will remain a priority, and we plan to invest in both improving common areas and employee satisfaction.

PET Baltija, one of the largest PolyEthylene Terephthalate (“PET”) recyclers in Northern Europe and part of Eco Baltia, the largest waste management and recycling group in the Baltics, today announces the investment of over €10 million as part of the development of a new PET recycling plant in Olaine, Latvia.

This joint project is being delivered by Eco Baltia, which is backed by the INVL Baltic Sea Growth Fund, in collaboration with PICHE, a leading industrial park developer in Latvia. The total investment exceeds €35 million.

The plant will be one of the largest and most modern PET recycling factories in Europe and one of the largest industrial buildings in Latvia. Its total indoor area, including production facilities, well-equipped office space and various shared facilities, will reach a total of ~30,000 square meters. The outdoor area will also cover ~40,000 square meters. As part of the project, PET Baltija’s existing Latvian factory in Jelgava will be relocated to the new production facility in Olaine over time.

Māris Simanovičs, Chairman of the Board at Eco Baltia, commented:
“In recent years, we have pursued a rapid development strategy for the Eco Baltia group in the Baltics and beyond. In addition to its organic growth, we have also acquired several companies to ensure the production of the best possible final product in PET recycling as well as expanding our offering for environmental management.”

Simanovičs, continued:
“Thisdevelopment of a new PET Baltija factory is one of the most ambitious business expansion projects by Eco Baltia in recent years. The main objective is to increase the food grade rPET pellets production capacity and provide the necessary conditions for the company’s further development, as well as to strengthen our market share within the European market. This will undoubtedly create additional value for our customers and partners respectively, as well as provide better working conditions for our employees.”

With the factory currently under construction, the plant’s initial phase was celebrated in early May. This marked the installation of the first production equipment located within one of the completed production areas.

Salvis Lapiņš, Chairman of the Board at PET Baltija, added:
“This year, the company celebrated its 20th anniversary, having demonstrated that Latvian companies can be significant players in the recycling industry on the European stage. More recently, we are progressing the development of a new factory that will ultimately allow us to more than triple our food grade rPET pellets production capability while also improving efficiency, productivity and set new standards in PET recycling technologies.”

The supplier of the recycling equipment is Starlinger, an Austrian manufacturer and one of the world’s leading developers and manufacturers of recycling technologies. In Europe, only two production plants currently have Starlinger equipment of this level already installed, while globally there are only ten examples. Therefore, the PET Baltija factory will also technologically be one of the most modern PET recycling factories in Europe and in the world more broadly.

Deimantė Korsakaitė, Executive Partner at INVL Baltic Sea Growth Fund and Chairman of the Supervisory Board at PET Baltija, commented:
“As part of our strategy, we aim for significant expansion and development of our portfolio companies to become bigger, more efficient and better developed in all aspects, including a better workplace for employees. This step is significant and will move an already international company to its next stage of development. It will progress PET Baltija further forward on the map, as not only a regional but also a European level, for the most modern and efficient recyclers contributing to world’s sustainability drive.”
The new PET Baltija’s recycling factory and industrial park is developed by the leading industrial building developer in Latvia, PICHE.

According to PICHE CEO Pēteris Senkāns, the PET recycling plant is one of the company’s largest and most complex projects of the year.

Senkāns commented:
“Like other industrial parks developed by PICHE, this project also adheres to the highest of energy efficiency standards. We are pleased that our extensive experience and competence were chosen for the implementation of this project, allowing the construction of a modern industrial building that meets the current requirements for the construction industry.”

Following the sustainability strategies of Eco Baltia and PET Baltija, which aim to reduce resource consumption and promote a circular economy, the building will comply with the BREEM® sustainable construction standard and will be fully powered by renewable energy.

The factory will also have unique wastewater treatment equipment which will also significantly reduce the consumption of chemical substances in the wastewater treatment process. In addition, the factory will have a highest of standards air recuperation system which will reuse excess heat energy generated during the PET melting for heating of the building. In accordance with the ESG strategy, significant attention is being paid to employee well-being and working conditions, in order to provide the highest of work safety standards, ergonomic and comfortable workspaces, as well as shared and recreational spaces.

PET Baltija’s relocation is planned in several stages, gradually shifting all PET Baltija production from Jelgava to the new factory in Olaine by the end of Q1’2024. The total number of jobs at the new factory will then exceed 250.

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.