Grigiskes - Notification on material event

Klaipedos kartonas AB, a subsidiary of GRIGISKES AB, invests in capacity expansion

Vilnius, Lithuania, 2015-07-10 07:58 CEST (GLOBE NEWSWIRE) -- Klaipedos
kartonas AB, a subsidiary of GRIGISKES AB, has started an essential project for
the modernisation of their paper production machine. The aim of the project is
to double the company's production capacity within 3-5 years. As specified in a
notice of GRIGISKES AB dated 04 June 2015 and commented on in a meeting with
investors on the same day, the strategy of the subsidiary is to implement this
project in three stages. 

Klaipedos kartonas AB and Voith Paper S.A., which belongs to the Voith GmbH
Company, have signed a supply agreement for new equipment amounting to EUR 9.3
mln and have started the first stage of the modernisation project for the paper
production machine. "We are going to invest EUR 13.6 mln in the project during this stage. The
working speed and volume of paper production are going to increase by 30% by
the end of the third quarter of 2016, after the new equipment is manufactured
and mounted. At the same time, the manufacturing production qualitative
parameters are going to be improved and the range is going to be expanded.
Taking into account the increasing demand for production, we hope that these
investments help the company strengthen its position within the international
markets", stated Gintautas Pangonis, the President of GRIGISKES AB and the
Chairman of the Board of Klaipedos kartonas AB. 

This year, Klaipedos kartonas AB will also invest into increasing the
production volume of paper honeycomb and, in October, plans to start a second
paper honeycomb production line. Investments planned: more than EUR 1.4 mln. 

It is expected that when the new line is started, the paper honeycomb
production capacity will increase by almost three times. 



Voith GmbH, established in 1867, is a leading company in the area of the paper
production machines worldwide with subdivisions in more than 50 countries
generating an annual turnover amounting to EUR 5.3 billion. 



Klaipedos kartonas AB, established in 1898, is one of the oldest companies in
Lithuania whose history is closely related to the history of Lithuanian
business. The company produces raw materials for the production of corrugated
cardboard - Testliner (cardboard of equal layers) and Fluting (paper to
corrugate). Beside this main activity, Klaipedos kartonas AB also produces
paper honeycomb that is used in the furniture industry, door production and so
on. The company expands its business year by year, and occupies a leading
position in the paper industry of the Baltic region. 


         Gintautas Pangonis
         President of GRIGISKES AB       (+370-5) 243 58 01