“Grigeo Klaipda” stops production – Business information

Added a comment by Gintautos Pangonis, president of the Grigeo group

This was confirmed by Gintautas Pangonis, president of the Grigeo group. According to him, the activity has been stopped since the beginning of the week, because the electricity consumption in the production of paper has risen from 10% to 25% of the cost price of the product. Be the first to know about it in 15 minutes.

G. Pangonis V stated that most European paper manufacturers face this problem. According to him, the company has calculated what the price of electricity should be in order for production to pay off, but he refuses to name the exact amount.

I think we will be able to resume production in 2 weeks. mons will not be fired or allowed downtime, for now they will work and manage production events, some will go on vacation, he explained.

AB Grigeo, whose shares are listed on Nasdaq Vilnius, does not provide public information.

Production will not resume next week either, later decisions will be made after assessing electricity prices.

The further rise in electricity prices is less optimistic. Our expenditure on electricity is 1012%, which is really a lot, as G. Pangonis said earlier.

It appears that Grigeos, one of the largest groups of paper and wood industry companies in the Baltic states, increased its sales revenue by 38.1% in the first half of the year, but the profit before interest, taxes, depreciation and amortization (EBITDA) decreased by 1%.

The main profit of AB Grigeo before tax increased by 228% in the comparative period, to 14.5 million. Eur. G. Pangonis explained this change then with dividends that were paid to other group companies, between him and Grigeos Klaipdas.

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V reminds that the Klaipda district prosecutor handed over the criminal case regarding Kurimari to the court, in which charges were brought against the cardboard production company Grigeo Klaipda and fourteen current and former employees of the company. The trial should begin in September.

The accusations in the case are for abuse, falsification of documents and their disposal, as well as violation of environmental protection rules. G. Pangonis, Tomas Eikinas and three other previous managers of Grigeos Klaipdas are accused of abusing their official position while working in an organized group, systematically violating the rules of environmental protection established by legal acts and forging documents.

Those responsible may be sentenced to up to seven years in prison, while Grigeos Klaipda may be restricted in his activities, the company may be liquidated, and he may be fined up to 5 million. EUR fine.

And the Department of Environmental Protection is going to file a civil claim for the damage caused to the environment, which may amount to almost 48.3 million. Eur.