I nformation about property AN INVITING OFFER FOR INVESTMENT. 2010. AN INFORMATION IS DEDICATED FOR
Information about propertyANINVITING OFFER FOR INVESTMENT
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)
Mr. Rimas Varanauskas
Cell phone: +370 698 21852
BRIEF INTRODUCTIONOF PRIDUCTION UNITProduction unitits 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.
INFRASTRUCTUREProduction 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.
PRODUCTION UNIT’S REAL ESTATE PROFILEGEOGRAFICAL LOCATIONThe production unitis ~ 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 THEMPlot unique No. 7980-0001-0052Statybininku str. 9,VievisArea1’2683 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 plotFurniture production department 7P1b unique Nr. 7997-3018-0010Construction 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.
Total building area11’036’48m2Internal 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 innercolumns-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. 7997-3018-0020Construction year 1975.IncompleteMain constructions.Foundation-concrete, walls-only columns from reinforced concrete, flooring-concrete.Total building area 607’50 m2Plot unique No. 7980-0001-0051Statybininku str. 6, VievisArea 0’2554 ha,there are built fire pump-house and two fire tanks in the siteLegal 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
Buildings being in the plotSecond lift station 13H1p unique No. 7997-4016-9019Construction 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 area48’75 m2 Reservoir 14H1b No. 7997-4016-9024Construction area 1974.Completed 100%Main constructions. Foundation – monolithicconcrete, walls – concrete.Total building area128’52 m2 Reservoir 15H1b No. 7997-4016-9038Construction area 1974.Completed 100%Main constructions. Foundation – monolithicconcrete, walls – concrete.Total building area128’52 m2Plot unique No. 4400-0881-7907Statybininku str. 1, VievisArea1’2336 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
Buildings being in the plotFinished goods warehouse 1F1b unique No. 7997-3017-9354Construction year 1975.IncompleteOwnership 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 m2Total land at Vievis3.3928 haDEVELOPMENT OPPORTUNITIESIt is possible to carry construction of the buildings 16F1b and 1F1bCurrently there are only foundation, columns from reinforced concrete and concrete base (floor).BRIEF INTRODUCTION OF PRODUCTION UNIT’S BRANCH IN EISISKESTotal area of the territory - 2,95 hectares; land is leased from the state.Hard surface area- 1’800 m2Buildings are renovated in 2006.Territory is fenced.GOEGRAFICAL LOCATION
45 km to Vilniaus
30 km to Varėna
35 km toSalcininkai
7 km to Belarus borderline
Saw mill 1’440 m2Production department of dried components 1’332 m2Tool sharpening and metalworking bar180 m2Compressor room 36 m2Thermal unit10 m2Material warehouse99 m2Components warehouse422 m2 Administrative premises 318 m2Domestic premises 234 m2Dry kilns RAVITEKA 80m3 4 vnt.ENGINEERING EQUIPMENT:Electricity 650KWLocal water supplyLocal sewerageNo gasSolid fuel boiler withpowerof 1,5 megawattsSawdust 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
BRIEF DESCRIPTION OF PRODUCTION UNIT’S MATERIAL FACILITIESTECHNOLOGY AND MANUFACTURING CAPACITYCurrently 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 4-5 MLN LTLtables 20’000 pcs.bunk beds & beds 15’000 pcs.glueboard1’000 m3briquettes 400 tonnesTECNOLOGICAL EQUIPMENTS
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 INVESTMENTIN LITHUANIALithuanian 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, 2010The 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 2010According to the survey, the year 2010 will be more auspicious to companies than the previousyear. 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 2010As 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.