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Lithuania Business News: Archive 2003-

WEEK 26.2007

Saturday, 30th of June

Delays in flights
A Boeing plane owned by the Latvian airline Airbaltic on Thursday failed to take off from Milan for a scheduled flight to Vilnius due to a technical problem. Aura Pavariniene, a passenger of the Milan-Vilnius flight, said that the flight had been delayed several times. The pilots eventually informed the passengers that they could not start one of the engines, said Pavariniene, who is deputy director of Sostines Namai, a Vilnius-based company. Rosita Sakalauskaite, Airbaltic's marketing and public relations coordinator, confirmed that the Milan-Vilnius flight had been delayed due to technical reasons. "A technical failure in the Boeing 737-500 aircraft was detected," she said. The flight to Vilnius was scheduled to leave before 7 pm on Thursday. Sakalauskaite said that the airline had taken care of all the passengers of the delayed flight.
Lietuvos Rytas

Changes in economic life
According to the interview with the Social Care and Work Minister Vilija Blinkeviciute, this mid summer is full of novelties. The minimum wage has been raised for working people, pensions increased for pensioners, while mothers and fathers, who raise children, will receive bigger payments. Each Lithuanian resident should be aware of such significant changes; therefore a couple Lithuanian dailies interviewed Lithuanian Social Care and Work Minister.
Lietuvos Rytas, Respublika

Deposits in rubles
Lithuanian residents, who did not arrange their documents on time, still have a chance to receive compensations for deposits in rubles. The Seimas did not reject the amendment, which claimed that residents still had rights to gain the compensations for deposits until July 1 2008, on Thursday. The amendments will be discussed by the Parliamentarians in autumn and the main committee will be made not by the Finance Committee but by the Human Rights Committee.
Kauno Diena

Friday, 29th of June

Lithuania appeals against the European Commision
Lithuania is appealing against the European Commission over the fine of LTL 10.987 million that was imposed on it this April for keeping excess stock of agricultural products. The decision to appeal towards the court of European Communities to reduce the amount of the fine or to lift the penalty whatsoever was made by the Lithuanian government on Wednesday. This will be Lithuania's first direct claim at European judicial institutions, the European Law Department under the Justice Ministry has reported.
Lietuvos Zinios

Unjustified fine for Mazeikiu Nafta
The Vilnius Regional Administrative Court has waived off as unjustified a LTL 32 million fine, imposed on Mazeikiu Nafta (Mazeikiai Oil), the sole Baltic oil refining and transportation complex controlled by Poland's PKN Orlen, for alleged abuse of dominance on the market. The court had acknowledged that the company had not breached the Law on Competition, Rosvaldas Gorbaciovas, Mazeikiu Nafta's spokesman, said.
Lietuvos Rytas, Respublika

Siauliu Bankas issues new shares
Lithuania's Securities Commission has approved a LTL 40 million par value share issue prospectus of Siauliu Bankas, the fast growing commercial bank. The bank would make a separate announcement about the launch of the issue, the watchdog said. The new share issue will be the largest ever in the bank's history. Siauliu Bankas seeks to raise LTL 92 million via the offering. The issue will be paid up with additional contributions of existing shareholders. Shares will be distributed in two stages of 15days.
Verslo Zinios

Thursday, 28th of June

Plans to shut down Ignalina Nuclear Power Plant
A three-party consortium will develop a LTL 12.02 million system to shut Lithuania's Ignalina Nuclear Power Plant (INPP) down. INPP signed a relevant agreement with Lithuania's IT developer Sintagma, audit company Ernst&Young Baltic and Germany's Energiewerke Nord on May 31. The consortium, which beat three other bidders in a respective tender, will have to fulfil the order in a year's time. The consortium might outsource up to 42 percent of the project (in terms of value) to subcontractors, the names of which have not been revealed as yet.
Lietuvos Zinios, Verslo Zinios

New leader in Mazeikiu Nafta
Marek Mroczkowski, vice-president of PKN Orlen, will join Mazeikiu Nafta (Mazeikiai Oil), the sole Baltic oil refining and transportation complex controlled by the Polish oil concern, as new CEO on July 2. The board of Mazeikiu Nafta should approve Mroczkowski as new CEO of the company later on Wednesday, Piotr Kownacki, Mazeikiu Nafta's chairman, said after the meeting with Lithuania's Prime Minister Gediminas Kirkilas. Mroczkowski would replace Paul Nelson English, who has been targeted by Lithuania's prosecutors suspecting him of negligence, which could be the reason of fire that ravaged the refinery last October.
Lietuvos Zinios, Respublika, Kauno Diena, Lietuvos Rytas, Verslo Zinios

New shopping centre reconstructions
Paul Oberschneider, the founder and former majority shareholder of the international real estate company Ober-Haus, has teamed up with Lithuania's Vilniaus Prekyba for the construction of a new shopping center in the Estonian town of Parnu. The project will be implemented by Oberschneider's property development company Hauser-Oberschneider, Ober-Haus said. It also said that Hauser-Oberschneider, along with Citigroup Property Investors, has purchased 18 hectares of land in Vilnius, on which they plan to construct 2,000 new apartments.
Lietuvos Zinios

Wednesday, 27th of June

Palanga’s Airport launches major reconstructions
Lithuania's International Airport of Palanga has launched the reconstruction of its passenger terminal, which is expected to eat up LTL 15 million in investments. Upgrade should be completed before Lithuania's accession to the Schengen area, the Transport Ministry said in a statement. The passenger terminal of Palanga Airport would be provided with fully equipped border checkpoint workplaces, mandatory surveillance and inspection devices, document inspection and examination devices, detectors and explosives detection equipment. On top of that, the airport would upgrade its runways and install flight control radar.
Kauno Diena, Lietuvos Zinios, Lietuvos Rytas

Vilniaus Mesa factory is being closed in Lithuania
Atria Group, Finland's largest meat processor, said on Tuesday that it would close down its factory in Vilnius, Vilniaus Mesa (Vilnius Meat), and concentrate its Baltic production operations in the Valga factory in Estonia. The factory in Vilnius will be closed on August 31 2007 at the latest. Atria's operation in Lithuania has been unprofitable and the market share is too small, approximately 3 percent, the group said in a statement Vilniaus Mesa's employees, who number 139, will be given notice of the closure. The factory will cease production by the end of August. It will deliver orders made before the end of June. Atria also said that it would look for a buyer of the buildings and land owned by Vilniaus Mesa. The closure of Vilnius Mesa will cost the group an estimated EUR 2 million.
Lietuvos Zinios, Lietuvos Rytas

Beer production in Lithuania
The Lithuanian beer market grew by 3.1 percent in the first five months of this year from a year earlier to 10.012 million dekalitres, the Lithuanian Brewers' Association reported. In May alone, the market rose by 9.07 percent year-on-year to 2.765 million dekalitres. Svyturys-Utenos Alus, which is controlled by the Nordic group Baltic Beverages Holding (BBH), raised its domestic beer sales for the five months by 6.6 percent to 4.929 million dekalitres. Its share of the beer market went up to 49.23 percent from 47.59 percent a year ago.
Lietuvos Rytas

Tuesday, 26th of June

USA attitude towards Lithuania
According to the experts in the USA, the business conditions in Lithuania look alright. However, they are not as good so that the American companies could hurry to invest near the Baltic Sea. The businesspeople are looking all around the world presently, to find the suitable country for their investments. The daily Lietuvos Rytas had an interview with the vice president of the biggest American Business Organization – the USA Trade Chamber – Daniel W. Christman. The businessman and the journalist discussed why Lithuania attracted so little investors and what should it do to improve its condition.
Lietuvos Rytas

Vilniaus Baldai is leading in furniture manufacture
Vilniaus Baldai (Vilnius Furniture), one of Lithuania's leading furniture manufacturers, posted a net profit of LTL 0.428 million for the first five months of this year, up 70.5 percent in the same period a year ago. EBITDA rose by 7.3 percent over the reporting period to LTL 5.9 million. In May alone, the company's net profit jumped by 24.4 percent. EBITDA was up 15.4 percent to LTL 1.5 million.
Verslo Zinios

Apranga submits an application for bonds
On June 21, Apranga submitted an application to Vilnius Stock Exchange for listing of LTL 20 million-bond issue on Debt Securities List of VSE. The new bonds refinance previous bond emission of the same value. Apranga plans to earn LTL 415 million of revenues this year; which would be by 38.7 percent more than last year. It also plans to gain LTL 31 million of pre tax profit, which would be by 50 percent more than last year.
Verslo Zinios

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