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2009-08-14 15:05:10 CEST 2009-08-14 15:06:10 CEST REGULATED INFORMATION Snaige AB - Notification on material eventClosure of Kaliningrad factory will ease AB „Snaige“ business situationOn 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 |
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