Information about property
AN INVITING OFFER FOR INVESTMENT
2010
AN INFORMATION IS DEDICATED FOR
- Existing and future suppliers of IKEA who are
planning the furniture business development
purchasing completely developed production unit and
raw material preparation shop (hereafter you will find
concerned information)
- IKEA Logistics operator for establishment of
warehousing facilities/Logistic centre in order to collect
goods from suppliers based in Lithuania and Baltic
States in such way optimizing transport costs (hereafter
you will find concerned information)
Contact person:
Mr. Rimas Varanauskas
Cell phone: +370 698 21852
E-mail: rimas@bbg.lt
BRIEF INTRODUCTION OF PRIDUCTION UNIT
Production unit its operation started in1996 by owning of Danish promoter. It had
brand-new technological machinery installed, however its business was unsuccessful.
In December UAB “Baltijos baldu grupe” (BBG) has acquired this production site and
today BBG owns 100% shares.
In period of 2001-2008 production unit has been specialized in manufacturing of solid
pine tables and it was the biggest tables producer in Baltic. In 2006 m., after
investments of 2,2 mln.LTL were done into purchase of modern machinery, production
unit undoubtedly became not only as the biggest but also leading-edge supplier of such
type of product.
In 2005-2008 apart solid pine furniture production the production unit run production of
birch products as well. For that purpose in 2005 it was opened its branch where raw
material and components for birch products have been produced. The sawmill was
established in Eisiskes (Salcininkai district). It is furnished by 4 modern dry kilns with
capacity up to 320 m3 wood.
In the middle of 2009 the production unit stepped in new product segment- bunk beds
and beds for adults. Such diversification of specialization was decided after detailed
market research what shows topical demand of consumers. During half year of 2009
there was made a huge input in search of new customers.
Besides last mentioned key ranges (tables and bunk beds & beds) the production unit
is able to manufacture various chests, robes, shelves, etc. Such variety of product
possibilities is based on available production facilities what allows easy to come over
from one group of products to another one.
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INFRASTRUCTURE
Production unit operates in Vievis, Elektrenai municipality, which successfully takes
advantage of idea of bicity of Vilnius and Kaunas. In 2006 m. Elektrenai municipality
approved functional zoning plan what removed barriers to change land use. As a
result of this, Lithuanian business and industry investors turned their eyes towards
Vievis and territories going in the direction of Elektrenai by high way Vilnius-Kaunas.
Currently there are actually no free land near Vievis and Elektrenai.
Vievis is situated from both sides of high way Vilnius-Klaipeda as well as by
important railway Vilnius-Kaunas.
In the end of 2007 there was built new modern logistic centre in Vievis, by the high
way Vilnius-Klaipeda.
 Area – 17 017 m² in the ground floor and 2 512,5 m² in the attic
 Storage height – 10,5 m
 Ramps’ number – 20 .
 Ventilation and heating system
 Automatic fire-fighting system with smoke and heat detectors and sprinklers
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PRODUCTION UNIT’S REAL ESTATE PROFILE
GEOGRAFICAL LOCATION
The production unit is ~ 4 km away from high way Vilnius-Klaipeda. The factory is
located distantly from key residential areas, in the industrial area.
Object consists from three adjacent lands and as a basic is production and
warehousing building with area of 11’036’48 m2, near which is as follows:
- parking lot with blacktop;
- wide access roads;
- nearby (outside production site’s territory) is railway’s branch.
DESCRIPTION OF PLOTS AND OBJECTS BEING IN THEM
Plot unique No. 7980-0001-0052
Statybininku str. 9, Vievis
Area 1’2683 ha, land is relatively flat terrain, access roads, loading-unloading
grounds, car parking are with blacktop.
Legal basis for the use: Land lease agreement No 419 dated1997-12-19
Lease: from 1997-12-19 until 2096-12-19.
Legally land use: for another special purpose.
The existing land use: the law as intended
Engineering networks: the site has a water supply, sewerage, electricity and
communication networks
Buildings being in the plot
Furniture production department 7P1b unique Nr. 7997-3018-0010
Construction year 1973, renovation year 1998 m.
Completed 100%
Main constructions. Foundation – concrete, walls – concrete slabs and brick-built
plytų, dividing walls- gypsum boards, overlay-reinforced concrete, roof- superposed
structures with web-coated surface, windows – wooden double / plastic.
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Total building area 11’036’48 m2
Internal finishing: administrative facilities has floors from laminated parquet or
carpeting, walls and ceilings are painted. Sanitary rooms’ flooring and walls are from
tiles, ceiling is painted. Production facilities’ floor is from concrete or ceramic tiled;
walls painted; ceiling both painted and suspended.
Three-dimensional planning: Building’s holding structure – frame from reinforced
concrete, step between the outer columns – 6 m x 12 m, step between the inner
columns-12 m. x 18 m. Building is one storey, inside part of area has overlay. There
are equipped administrative domestic premises in the second floor. Their height is 3
m. At one end of the building is separate part of the premises, they are equipped
with the production - back rooms, their height is 2.7 m.
(see enclosed building’s plan)
Engineering equipment: 1680 KW electricity, water supply, sewerage, telecoms,
security and fire alarm.
Local boiler. Two Biofuel boilers with a capacity of 0.6 and 0.3 megawatts
Fire-fighting capacity: two water tanks x 500 m3, fire station with two electric pumps
x 100 kw
Compressed air transport capacity: three bags that filter -210 thous.m3 air per hour;
two cyclones x 20 thous.m3 air per hour
Finished goods warehouse 16F1b unique No. 7997-3018-0020
Construction year 1975.
Incomplete
Main constructions. Foundation-concrete, walls-only columns from reinforced
concrete, flooring-concrete.
Total building area 607’50 m2
Plot unique No. 7980-0001-0051
Statybininku str. 6, Vievis
Area 0’2554 ha, there are built fire pump-house and two fire tanks in the site
Legal basis for the use: Land lease agreement No. 419 dated 1997-12-19
Lease: from 1997-12-19 until 2096-12-19.
Legally land use: for another special purpose.
The existing land use: the law as intended
Page  6
Buildings being in the plot
Second lift station 13H1p unique No. 7997-4016-9019
Construction year 1984.
Completed 100%
Main constructions. Foundation –concrete strips, walls – masonry, roof –
superposed structures with web-coated surface, windows-wooden single, outer
door-wooden
.Total building area 48’75 m2
Reservoir 14H1b No. 7997-4016-9024
Construction area 1974.
Completed 100%
Main constructions. Foundation – monolithic concrete, walls – concrete.
Total building area 128’52 m2
Reservoir 15H1b No. 7997-4016-9038
Construction area 1974.
Completed 100%
Main constructions. Foundation – monolithic concrete, walls – concrete.
Total building area 128’52 m2
Plot unique No. 4400-0881-7907
Statybininku str. 1, Vievis
Area 1’2336 ha, there is building with concrete flooring and columns built from
reinforced concrete in it.
Legal basis for the use: Land lease agreement No. 64dated 2004-12-21
Lease: from 2004-12-21 until 2054-12-21.
Legally land use: industrial and warehousing facilities area.
The existing land use: the law as intended
Page  7
Buildings being in the plot
Finished goods warehouse 1F1b unique No. 7997-3017-9354
Construction year 1975.
Incomplete
Ownership of the building 6594/10000 (3406/10000 UAB „Torlina“)
Main constructions. Foundation – concrete, walls – only columns from reinforced
concrete, flooring – concrete.
Built-up area 8136’07 m2
Total land at Vievis 3.3928 ha
DEVELOPMENT OPPORTUNITIES
It is possible to carry construction of the buildings 16F1b and 1F1b
Currently there are only foundation, columns from reinforced concrete and concrete
base (floor)
.
BRIEF INTRODUCTION OF PRODUCTION UNIT’S BRANCH IN
EISISKES
Total area of the territory - 2,95 hectares; land is leased from the state.
Hard surface area- 1’800 m2
Buildings are renovated in 2006.
Territory is fenced.
GOEGRAFICAL LOCATION
Connections:
45 km to Vilniaus
30 km to Varėna
35 km to Salcininkai
7 km to Belarus borderline
Page  8
PRODUCTION FACILITIES:
Saw mill
Production department of dried components
Tool sharpening and metalworking bar
Compressor room
Thermal unit
Material warehouse
Components warehouse
Administrative premises
Domestic premises
Dry kilns RAVITEKA 80m3
1’440 m2
1’332 m2
180 m2
36 m2
10 m2
99 m2
422 m2
318 m2
234 m2
4 vnt.
ENGINEERING EQUIPMENT:
Electricity 650KW
Local water supply
Local sewerage
No gas
Solid fuel boiler with power of 1,5 megawatts
Sawdust extraction systems
POSSIBLE TO CARRY OUT ACTIVITIES IN PRODUCTION UNIT:
- Glueboard & components production
- Furniture production
- Windows and doors production
- Frame house production
- Storage facilities/Logistic centre
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BRIEF DESCRIPTION OF PRODUCTION UNIT’S MATERIAL FACILITIES
TECHNOLOGY AND MANUFACTURING CAPACITY
Currently the production unit could develop solid pine furniture production using two
separate technological flows. It is the production of parts made from both glueboard and
solid planks.
Production waste (sawdust, wood shavings, etc.) is reprocessed into 100% of organic
and environmentally friendly product – briquettes that are designed for industrial and
domestic solid fuel boilers.
Currently the production unit working under two shifts regime is able to produce per
month the following:
furniture totally
tables
bunk beds & beds
glueboard
briquettes
4-5 MLN LTL
20’000 pcs.
15’000 pcs.
1’000 m3
400 tonnes
TECNOLOGICAL EQUIPMENTS
EQUIPMENT
PURPOSE
Average monthly
capacity operating in two
shifts
OPTIKAT ir PAUL
Planks cutting
~ 4000 m3 planks
HIDROMAT
Planer for lamellas production
~ 2000 m3 lamellas
WEINING
Planer for production of parts from
solid plank
~ 2000 m3 parts
KOLESO
Press for glueboard production (3
pcs.)
~ 1000 m3 glueboard
COSTA
Glueboard calibration line (2
machines) per one operation cycle
calibrates the glueboard from both
sides up to desired thickness
Glueboard calibration
line
Glueboard calibration line (by
perimeter) with integrated drilling
machines per one opeartion cyscle
gives to detail desired edge profile
and drilling.
Page  10
ROVER CNC routers
Machines are used for
performance of complex
operations (3 pcs.)
EQUIPMENT
PURPOSE
Average monthly
capacity operating in
two shifts
Specialized table legs sanding
machine;
Specialized legs turning lathe
VITAM. GOMAD,
BIESE
Drilling machine for the parts
made of solid pine planks
Edge lacquering line
Legs lacquering line
UV line
Line gives a high surface
resistance for finished surfaces
Oiling line
Line makes three operations:
sanding, staining and oiling
Automatic sprayer
For finishing of curved
elements, solid parts as well as
components with different
fillings
Packing transporter
Beiquettes
production press
Page  11
For sawdust processing into
wooden briquettes (2 pcs.)
~ 400 tonnes
PRODUCTION FLASHES FROM MAIN PRODUCTION UNIT
Page  12
BRANCH IN EISISKES
Page  13
INTERNAL ADVANTAGES FOR INVESTMENT INTO PRODUCTION UNIT
- Completely developed production unit for pine furniture manufacturing
- all necessary technological equipments in good technical condition
- professional management and high skilled workforce
- strong long-term relationship with raw material suppliers
- knowledge and experience of doing business with IKEA
- Beneficial infrastructure/geographical location
- Right construction type of buildings
- production on the line; dividing into separate small premises is eliminated
- sufficient height in case of running the warehousing business
EXTERNAL ADVANTAGES FOR INVESTMENT IN LITHUANIA
Lithuanian economical background and relevant conditions for developing business are being
on the upgrade comparing with 2009.
Projections of Lithuanian Economic Indicators acc to Survey of Lithuanian Economy
conducted by LFMI in January, 2010
The survey indicates that market participants are more optimistic now than they were in
September 2009. However, the optimism is very modest. Market participants predict that the
Lithuanian economy will continue to contract in 2010, with unemployment being on the rise: in
2009 it was 13,6 percent while project for 2010 is 16,7 percent and respectively 15,5 and 14,7
percent in 2011 and 2012. This expression is advantageous for employers.
As the LFMI survey shows, average net earnings amounted to about 1,620 Litas per month in
2009, a nearly 10-percent slide compared to 2008. Market participants believe that average net
earnings will continue to drop, by 6.5 percent, totaling 1,514 Litas per month in 2010.
According to the LFMI survey, the price of borrowing will go down in 2010 compared to 2009.
Market participants think that interest on loans in Litas was between 8.5 and 9 percent in 2009
while there is forecast from 7,1 to 7,5 percent in 2010
According to the survey, the year 2010 will be more auspicious to companies than the previous
year. Market participants believe that the profit margin and the return on equity averaged 2 and
4 percent respectively in 2009. They expect that both the profit margin and the return on equity
will increase and average 3 and 5.2 percent respectively in 2010
As the survey demonstrates, exports will continue to grow at a higher rate compared to
imports. Market participants forecast that imports will grow by nearly 2 percent in 2010 and
exports will edge up by 5.3 percent. A negative GDP forecast and the projected five-percent
export growth indicate that market participants anticipate a faster recovery of foreign markets
compared to the Lithuanian market and see exports as the course for the recuperation of the
Lithuanian economy.
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