Snaige AB - Notification on material event

Closure of Kaliningrad factory will ease AB „Snaige“ business situation

On 12 of August 2009 AB „Snaige“ board of directors has decided to close down
its refrigerators manufacturing factory in Kaliningrad, Russia. Manufacturing
activity at this factory has been suspended since 2 March 2009. 
According to managing director of AB „Snaigė“ Gediminas Čeika, after
devaluation of Russian rubble manufacturing at this country has become highly
unprofitable. „Despite being very hard, decision to close down Kaliningrad
factory was inevitable“ - stated G. Čeika. -„We do not see any positive changes
in the Russian market and even after manufacturing suspension the company is
each month incurring loss due to Kaliningrad factory. Such financial burden
during the times of economical downturn is too heavy, as a result, the decision
to close down the factory was taken“. 
The company plans to sell Kaliningrad factory premises. Refrigerator
manufacturing equipment will be transported and used in the main and stably
working factory in Alytus. 
The company will incur 70 m.LTL losses due to failed investments in
Kaliningrad. However, after selling Kaliningrad factory premises the company
will raise additional financial reserve. Currently AB „Snaige“ has more orders
for new refrigerators than it is able to produce, however, it is unable to
increase production due to lack of working capital. 
According to G. Čeika, AB „Snaige“ does not rule out possibility to sell
refrigerators in Russia. „Economic instability and recession will not go on
forever, after reversion of current business situation we will look for ways to
recover trading relations in Russian market“ - said G. Čeika. 


More information:
Gediminas Čeika
Managing Director of “Snaigė“ AB
Phone +370-315-56206 
www.snaige.lt