Spaudos centras
Spaudos centras
VAKARŲ MEDIENOS GRUPĖ (VMG), a wood processing and furniture manufacturing company that has established its leadership in the Baltic States, is embarking on a historic transformation into an international investment VMG Group, which will continue to develop its activities in six strategic directions. The management of the new Group was transferred from Cyprus to Lithuania.
According to Sigitas Paulauskas, the sole shareholder of the VMG Group, the Group will invest only in sustainable, environmentally friendly areas in the Baltic States, Poland and other European Union countries and plans ambitious growth in cooperation with international and Lithuanian investors.
Sales will exceed one billion
The sales of the new VMG Group are expected to almost triple by 2025 and exceed EUR 1.1 billion.
“After 18 years of successful development of the woodworking and furniture industry by the Baltic market leaders we are now ready to apply our experience in other areas as well, further developing a sustainable, environmentally friendly business. There is no doubt that the formation of a new business group of a unique scale will create high added value not only for investors but also for the whole state and its citizens”, says Sigitas Paulauskas.
According to him, business development is planned not only by developing the current activities of the VMG of producing sustainable timber products but also in five other directions: Renewable energy, green packaging solutions, industrial innovations and technologies, construction of engineering timber structures, as well as infrastructure and real estate.
Reduction of environmental impacts
According to Mr Paulauskas, sustainable investments by the VMG will significantly reduce the environmental impact.
“Business must take responsibility for the environment in which we all live. Therefore, we are ready to take the lead and offer consumers and other businesses modern green solutions and products”, says the investor.
Investment in the development of the renewable energy park alone is expected to reach around EUR 50 million by 2023. Over the next five years, investments in the development of infrastructure and real estate solutions that reduce the impact on the environment will amount to over EUR 25 million, while investments in the development of the production of green engineering timber structures will amount to over EUR 100 million.
Management transferred to Lithuania
The new VMG Group will be managed through the investment management company VMGcorp registered in Vilnius.
“When planning the strategic development of our activities, we decided to concentrate our business management in Lithuania. This will undoubtedly give a significant boost not only to the development of our business but also to other business sectors, the entire labour market, strengthen the economic situation of the state and all its citizens, as well as improve the attractiveness of the country’s investment environment for other investors”, says Mr Paulauskas.
Until now, the VAKARŲ MEDIENOS GRUPĖ was managed by the company VMG Holdings established in Cyprus. From now on, this company will be responsible only for those businesses that are being developed in Cyprus and countries outside the European Union.
Creating added value
Currently, the VMG Group consists of 25 enterprises employing more than 4.5 thousand people. The products of companies are exported to more than 40 countries in the world. In 2019, the Group’s non-consolidated sales amounted to EUR 394 million and increased by 13% per year.
The Group is already making record-breaking investments in the Free Economic Zone of Akmenė.
In September this year, the VMG Group officially opened one of the most potent particleboard factories in Europe, which invested EUR 146 million and created 140 high value-added jobs.
The largest strategic project of the VMG Group is currently being developed in Akmenė – the cabinet furniture factory. It will invest up to EUR 76 million and create around 500 new jobs by 2022.
The Investor’s Forum Association recognized the VMG Group as an investor of the year in 2019, acknowledging the ‘sustainable and value-added investments for the country’s economy’.