Lithuania’s Norfos Mažmena set to build vegetable processing plant in Belarus

The facility was being designed for the meantime and the company planned to invest in it approximately 5 million euros, Norfos Mažmena chairman Dainius Dundilis told BNS.

“Approximately 5 million euros, but manufacturing installations have not been purchased yet, so it is difficult to tell precisely. The precise amount will be clear when we have the equipment,” he said.

The company had chosen to build a plant in Belarus, at a distance of approximately 140 kilometers form Vilnius, due to cheaper energy resources and good economic conditions, Dundulis said.

“Energy comprises between 30 and 50 percent of costs in vegetable processing and energy in Belarus is three times cheaper, roughly speaking,” he said adding that the representatives of Belarus’ authorities welcomed the investments.

“The authorities of Vileyka always ask us whether there are any setbacks for construction and declare their support,” Dundulis said.

The company plans to export the bulk of the facility’s output to Eastern European markets.

Norfa’s chain plans to open up to ten new or upgraded stores this year.

Norfos Mazmena posted 1.283 billion litas (EUR 371.9m, ex VAT) in turnover for 2011, up 2.2 percent from the year-earlier figure of 1.256 billion litas. With VAT included, its sales rose by 2.5 percent, to 1.549 billion litas.