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RETAL Baltic Saw 35% Growth in Income, Plans to Invest 10 million
RETAL Baltic, an HDPE cap and food-grade APET film manufacturer, operating out of the Klaipeda FEZ, recorded a 35% growth in income last year, totalling 48 million EUR. The company plans to invest 10 million EUR into expanding its manufacturing capabilities this year, increasing manufacturing capacity by 40% and allowing for the optimization of logistical processes.
Viktorija Jureviciute, the General Manager of RETAL Baltic, says that the majority of the credit for the achievements recorded throughout the past year belongs to the company’s process optimization efforts and the 40% growth in HDPE cap manufacturing capabilities.
“The results we saw in 2018 were caused by supply chain optimization, as well as manufacturing capacity growth, which improved our reliability as a supplier, heavily contributing to the rise of our market share numbers,” states V. Jureviciute.
RETAL Baltic expects 52 million EUR in income, with the number expected to grow further in 2020, after the planned expansion project is complete.
Throughout 2018, the company manufactured 23,000 tonnes of product or 27% more than the previous year. The majority of all products manufactured by RETAL Baltic were exported to Germany (16%), Switzerland, and other EU states (31%), with the total income from exports standing at 44 million EUR.
This year, RETAL Baltic is investing in growing their manufacturing capacity for both products it makes, as well as new warehousing and office spaces. The overall investment will be valued at 10 million EUR. According to V. Jureviciute, the expansion should allow the company to offer a wider assortment of environment-friendly packaging solutions, as 90% of the materials used for APET film manufacturing will come from recycled sources, while the HDPE caps will be lighter. With sufficient warehousing space, the company will also be able to optimize its logistics and warehousing processes even further.
“Step by step, we are expanding on our scientific research as well. In the period from 2016 to 2018, we have invested 916,000 EUR into a laboratory for scientific research and quality control, which has been certified by one of the leading beverage manufacturers in the world. We have bought a bottling process testing machine, which allows us to test new bottle cap designs by imitating the industrial capping process. We have further plans for 2020 in this field. We are looking to invest in new laboratory equipment. This will allow us to strengthen our market position when it comes to creating new products, while also improving the quality of our already existing offerings even more,” says V. Jureviciute.
RETAL Baltic started its operations in Klaipeda, back in 2004. Since then, the company’s employee list has grown from 20 to 180 people, with the company’s average annual income growth reaching 22%. RETAL Baltic pays special attention to product development and improvement, so the company’s highly qualified staff are currently actively working in local and international projects for R&D and manufacturing development.
Eimantas Kiudulas, the CEO of Klaipeda FEZ, says that Retal Baltic is a great example of the importance of R&D and the fruits it provides.
“Retal Baltic keeps researching, innovating and delivering sustainable solutions that the market needs. Therefore company’s growth and further ambitions don’t come as a surprise. I am also delighted that Retal Baltic keeps expanding and embarking on new projects at our zone for more than 15 years,” E. Kiudulas says.
RETAL Baltic is owned by the international PET packaging manufacturing group RETAL. The group was founded in 1994 and currently controls 17 factories in 10 countries, exporting its products to 60 countries all over the world.
Out of the 1,500 RETAL employees worldwide, more than 600 work in Lithuania. The group recorded income of 1.2 billion EUR in 2018, with 60% (723 million EUR) being generated in Lithuania, by Neo Group, RETAL Lithuania, and RETAL Baltic. The RETAL Group is based in Limassol, Cyprus, with Cypriot citizen Anatoly Martynov, the majority owner of the group, acts as its President.