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Lavango is planning to double their income and build a second factory building
The Lavango group, which manufactures food processing and handling equipment, is planning to finish building its second manufacturing building next year and double its sales by 2023. The company was inspired to expand due to the business terms available at the Klaipeda FEZ and the convenient access to Scandinavian markets.
Lavango designs and manufactures stainless steel freezing and cooking equipment, as well as processing lines, together with providing all associated services. The company has partnerships with the biggest food industry manufacturers in the Baltics, Scandinavia, and other countries. Last year, Lavango acquired CTiProcess ApS, a Danish competitor, moving its entire operation to Klaipeda.
This is why Lavango expects to expand its manufacturing capacity in the upcoming years. Documentation for a second factory in the Klaipeda FEZ territory is being taken care of, the project is expected to be completed in 2021, which should double the company’s income by 2023.
“After the Danish acquisition, which came with a brand that is well-known in the food industry, we have also gained a lot of high added value when it comes to know-how, as well as intellectual property, patents, and a worldwide market share,” said Jevgenij Sakovskij, the CEO of Lavango Engineering LT. “We moved the Danish manufacturing operations to Lithuania, so we are planning to expand, both in scope and in staff. Also, we have recently updated Lavango’s branding. We believe that our new identity will allow us to stand out and strengthen our position in the competitive environment even more.”
This year, Lavango opened a new factory in Minsk, Belarus. The new object is planned to employ up to 25 people. A presence in the neighboring country should allow the company to expand its activity in the Commonwealth of Independent States more comfortably. Currently, the Baltics and Scandinavia each account for 45% of the company’s sales, with the CIS region being responsible for the last 10%.
According to J. Sakovskij, Klaipeda is the perfect spot to set up base while expanding both to the west and the east.
“I consider the Klaipeda FEZ to be the best business spots both from the operational and logistic perspectives,” said the CEO. “We find it comfortable to communicate with clients, partners, and our group from the FEZ. We can also easily transport to Scandinavia and the Baltics. We are in a constant stream of active communication with the FEZ management company, as well as staff from other FEZ companies, which was especially noticeable during the pandemic crisis.”
In 2019, the consolidated income from the entire Lavango Group was 5.2 million EUR, or 18% than the previous year. The company expects its income to grow by 20% annually, up to 2023.