Photo of Judita Grigelytė (VŽ).
On Friday, the shareholders of the wood fiber board, cardboard and toilet paper production group Grigeo approved the name change to Grigeo Group. The group is changing its name for the purpose of more efficient business management and development, the company announced through the Nasdaq Vilnius Stock Exchange.
Tomas Jozonis, head of Grigeo, previously said that by changing the name, the company aims to strengthen its position in the production of hygienic paper and ensure even more efficient company operations.
It is planned to divide the group’s activities, forming a new segment of hygienic paper next to the segments of packaging and wood fiber boards.
The company will transfer the hygiene paper business to the subsidiary company Grigeo Tissue – it will be managed together with the hygiene paper factory in Poland purchased at the end of March. The production of this paper in Lithuania will continue to take place in Grigiškės.
The name of “Grigeo investment management” is changed to “Grigeo Paper Packaging”.
According to the company, the name change will continue to maintain centralized oversight and control.
Currently, the group has more than 1,000 employees.
Describing the situation in the paper sector, T. Jozonis says that although the volume of production of toilet paper both in Lithuania and in Europe is increasing every year: 4-5% in Eastern Europe, 1-3% in Western European countries, but the income in this segment has been severely diluted in recent years by raw materials and energy. prices.
And the biggest negative impact due to the general economic situation was felt by manufacturers of corrugated cardboard and packaging. Their sales volume reduced the indicators of the entire sector.
“As the volumes of furniture and manufacturing industry decreased, both in our region and globally, the demand for raw materials for corrugated cardboard and its products decreased. We felt it too”, the group leader does not hide.
However, he assures that general trends do not change this, as paper-cardboard packaging is sustainable, recyclable. They are chosen not only by those engaged in e-commerce, but also by producers in traditional industrial sectors. Therefore, in the long term, the demand for cardboard packaging will grow both in Europe and in the world.
“The last year is more of an exception, which is related to the fall in consumption and general economic trends,” adds the head of the group.
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Theme “Industry”
