Ūkio Bankas to co-finance construction of new facilities of UAB Juodeliai

Ūkio bankas
Press Release
5 October 2012

UAB Juodeliai, a wood processing and export company currently working in Kalvarija and Kazlų Rūda, held a ceremony for the placement of a time capsule into the ground to mark the start of the construction of new sawn timber processing facilities in Radviliškis. This will be the most modern sawn timber processing facilities in the Baltic States. The greatest share of financing for the project, which has a total value of LTL 37.5 million, will be provided by Ūkio Bankas.

‘With a view to continuing the successful development of our company, we now need to build new production facilities because our current capacity has been used in full. The new facilities will enable us to expand our assortment of goods considerably and start offering new, high quality products. Our successful cooperation with Ūkio Bankas will enable our company to implement this project and become even more competitive not only in Lithuania but also on an international scale’, Juozupas Zimnickas, director general of UAB Juodeliai, said.

‘Ūkio Bankas decided to contribute to the financing of the new production facilities of UAB Juodeliai after considering the successful performance of the company and the economic prospects of this specific project. We believe that the new facilities will enable the company to continue to increase its production volumes and sales. We also see a positive social aspect to the project: new jobs will be created in Radviliškis, which will contribute to the improvement of the social environment and to the strengthening of the community in the region’, Gintaras Ugianskis, chairman of the board of Ūkio Bankas, said.

The specialisation of the new facilities will be the production of pallet wood. Plans are to employ 80 people at the facilities. The new facilities are expected to start production in 2014. This will be the most modern sawn timber processing facilities in the Baltic States, provided with a fully computerised wood-processing infrastructure. The project will be financed not only with the loan provided by Ūkio Bankas but also with support from European Union structural funds.

The pallet wood processing company is not only actively expanding to new markets (Scandinavia, Turkey, United Arab Emirates) but is also continues to increase exports to current clients. The main export markets for the company’s produce are Germany (up to 59% of the company’s produce), Belgium (10%), the Netherlands (9%), Poland (8%), and other countries (7%).

UAB Juodeliai has been operating since 1994 and is now one of the largest producers of pallet wood in the Baltic States. The company specialises in the production of high-quality wooden euro pallets, pallets for the chemical industry, and customised pallet wood. By-products such as firewood, sawdust, and wood slivers suitable for use as biofuel are also obtained during the production process. The company currently employs over 220 employees.

Ūkio Bankas was Lithuania’s first commercial bank and is in its third decade of providing reliable services via its own wide customer service network of over 60 branches throughout the country. Ūkio Bankas actively cooperates with businesses by offering them relevant financial solutions and proposals. The bank pays particular attention to small and medium-sized enterprises, as well as companies operating in the outlying regions of the country.

For further information please contact
Auksė Armonaitė Glodienė
AB Ūkio Bankas Public Relations Officer
Tel. 8 614 35021, fax (8 37) 32 31 88
E-mail a.armonaite@ub.lt

, , , , , ,