The company said the move would allow it "to achieve a more downstream processing level and start making a basket of products with higher added value," in order to boost the company's competitiveness and improve its bottom line.
Gintaras Bertasius, general director said, “The project will enable the company to implement one of its strategic goals to achieve a more “downstream” processing level and start making a basket of products with higher added value.”
This is expected to boost competitiveness and improve the bottom line, he added.
Sales down in 2015
The project, which is scheduled to start in February and has an expected completion date of the first quarter of 2017, has an estimated cost of $28.4m (€26m). Vilkyskiu Pienine said the initiative would be partly self-financed, with the remainder through borrowed capital.
The consolidated sales of the company for December 2015 amounted to $7.5m (€6.9m) – a 10% decrease compared to December 2014. Unaudited sales of the company for period January to December 2015 amounted to $91.5m (€84.4m) – a 23% decline compared to the same period in 2014.