Globe Newswire

Lithuania’s Grigiskes subsidiary Klaipedos Kartonas starts up new 17.5 MW biofuel boiler

By Thu, May 22, 2014

VILNIUS, Lithuania, May 22, 2014 (Globe Newswire) -Klaipedos Kartonas AB, a subsidiary of GRIGISKES AB, has successfully completed the construction of a new biofuel boiler and began to operate it. This modern 17.5 MW boiler will enable the company to have an up to 100 per cent supply of green energy produced by burning wood waste bought by the company. "In addition price of heat produced by burning wood waste is nearly twice lower than in case of using natural gas. It is particularly important for Klaipedos Kartonas AB, which is being modernized and sales expanding company," says Gintautas Pangonis, President and Chairman of the Management Board of GRIGISKES Group.

As it was published, the project was implemented with the support of Cohesion Fund up to LTL 6.0 million (EUR 1.7 million), project No.VP3-3.4-ŪM-02-K-02-003. After the positive assessment of the prospects the construction of a new biofuel boiler received a bank loan up to LTL 11 million (EUR 3.2 million). A part of the subsidiary's working capital was also used to finance the project.

This was not the first, but the biggest investment project, implemented by Klaipedos Kartonas AB in less than 4.5 years, when it was purchased by GRIGISKES AB. "At this project we will not stop. This project is a solid foundation and, I'd say, a source of financing for future investments in subsidiary's equipment's modernizations and renovations, which would allow to reduce costs and expand production capacity, " - said Mr. Gintautas Pangonis.

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