Snaige AB - Notification on material event

AB „Snaigė“ will reorganize manufacturing and will reduce operational costs

The only domestic refrigerators manufacturer in the Baltic states AB „Snaigė“
will implement radical means in order to increase efficiency of management of
the company and reduce manufacturing costs. 

According to the director general of AB „Snaigė“ Gediminas Čeika, these changes
are determined by the decreasing consumption of products in company‘s strategic
markets. 

„In the situation there the prices of raw materials, financial and energy
resources are constantly rising and consumption is falling, we have to admit
that profitability of company‘s operations can be achieved by radically
decreasing operational costs and optimizing manufacturing processes. We will
produce less, but more efficiently and more profitably“ - said Mr. Čeika. 

According to Mr. Čeika, operation expenses will be decreased not only by saving
and more strict control of company‘s spending, but also by decreasing number of
employees. The company plans to eliminate functions with are unnecessary and
not related to main operations of the company. The number of employees in the
Alytus factory will be decreased by approx. 300 and in Kaliningrad factory by
approx. 180. 

Mr. Čeika has stressed that AB „Snaigė“ will create all possible opportunities
to alleviate social consequences of the workforce cut. According to him, the
special work group will be formed in the company responsible for the issue. „
We will invite representatives of Lithuanian labor exchange and training
centers which will consult our employees. Also AB „Snaigė“ will inform other
companies of Alytus region about qualification and position of the fired
employees and will mediate in the process of re-hiring“, - said Mr. Čeika. 

6 October, 2008

Managing Director
Gediminas Ceika
+370 315 56205