NIB and Luminor finance Pienas LT production expansion
Pienas LT, one of the largest dairy cooperatives in the Baltic states, is expanding the capacity of its milk protein production facility located in the Kaunas Free Economic Zone (FEZ). Pienas LT plans to invest EUR 50 million to modernise and expand production. The Nordic Investment Bank (NIB) will finance EUR 20 million of the investments, while more than EUR 30 million in financing will be provided by Luminor Bank.
After the modernisation and expansion of the Pienas LT plant, the production capacity is set to double from 650 tonnes to 1,300 tonnes of milk per day. More than 150 new jobs will also be created.
The investment project will introduce new production lines and modern technologies, expand the fleet of dairy storage tanks and milk trucks as well as improve the competences of employees. The expansion will also increase productivity by reducing energy costs and improving logistics. Pienas LT expansion project will run from Q2 2024 to Q4 2025.
"This investment is an important step towards achieving our objectives, growing the cooperative and realising our strategic plans. The expansion will allow us not only to increase our milk processing capacity but also to further develop our basket of premium products for new export markets. Investments in modernisation and sustainable development will help us to strengthen our position in foreign markets and contribute to increasing the competitiveness of the Lithuanian dairy industry in other countries," says Audrius Skučas, CEO of Pienas LT.
"The development of the cooperative is an important message to all Lithuanian milk producers. Soon, with the expansion of production capacity, we will be able to invite new members to join and become one of the managers of a modern, high-tech company. We are seeing our own member farms increasing their milk production, and we are seeing strong interest from other dairy producers to become members, so we are truly "forced to invest in expansion". We are the only dairy processing company in Lithuania where the economic benefits generated by the company are shared by all members of the cooperative, as well as providing various benefits directly to members, organising various community-building events and other activities," says Petras Viršilas, Chairman of the Board of Pienas LT.
NIB will contribute EUR 20 million for the expansion.
"Our financing supports an important industry in Lithuania. The expansion will allow us to increase the scale of raw milk processing, and to produce more efficiently and in larger volumes higher value-added products, which is essential to remain competitive in a fast-growing sector," says Vilius Girkontas, Senior Banker and Country Lead for Lithuania at NIB.
NIB is co-financing the Pienas LT project with Luminor Bank, which is providing EUR 24 million for the operation and development of the agricultural cooperative and EUR 6 million to finance its working capital needs.
“Pienas LT regularly demonstrates sustainable performance and ambitious development plans, and we are confident in its market prospects. We are constantly striving to contribute to the modernisation of business in Lithuania and we are confident that the financing provided for the modernisation and expansion of the Pienas LT plant will allow the cooperative to gain additional scale and an even greater competitive advantage, and will lay the foundation for the organisation's further growth," says Vytis Žegužauskas, Head of Corporate Banking Lithuania at Luminor.
About Pienas LT:
Pienas LT is one of the largest dairy cooperatives in the Baltic states and the largest milk processing company in Lithuania, established in 2009. The company is a cooperative of nearly 300 members and specialises in the production of premium quality milk ingredients (milk proteins) and exports its products to more than 46 countries worldwide. The company estimates that its production accounts for around 8% of the total European Union milk protein market. The cooperative aims to increase its share of the Lithuanian milk market from the current 20 % to 30-35 % and to maintain its strong position in the European market.
About NIB:
NIB is an international financial institution with eight member countries - Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The bank finances private and public projects in the Member States and beyond. Standard & Poor's and Moody's have given NIB the highest possible AAA/Aaa credit rating. Read more about NIB in Lithuania.
About Luminor:
Luminor is the leading independent bank in the Baltics and the third largest financial services provider in the region. We serve the financial needs of individuals, families and businesses. Like our home markets - Estonia, Latvia and Lithuania - we are young, dynamic and forward-looking.
For more information, please contact
Pienas LT:
Asta Kamandulienė, CFO at Pienas LT, at +370 655 40595, asta.kamanduliene@pienaslt.eu
NIB:
Vilius Girkontas, Senior Banker, Country Lead for Lithuania, at +358 10 618 0240, vilius.girkontas@nib.int
Luminor:
Indrė Baltrušaitienė, Head of Communications at Luminor, at +370 676 45334, indre.baltrusaitiene@luminorgroup.com
Tags: