Trending now
15min be reklamos
Published 2021 10 27, 15:20

SBA furniture companies grew by 17% this year, energy and commodity price shock presents a challenge

The SBA Group’s furniture manufacturing companies sold 257.6 million euros’ worth of production over the first nine months of this year. This is a 17% increase over the same period last year, which saw products sold for 220 million euros.
SBA gamykla ties Klaipėda
SBA furniture factory / J. Andriejauskaitės / 15min nuotr.

"Thanks to the focus of our team and the close cooperation with our business partners, we are overcoming the challenges in global markets – the raw material price corrections and disrupted logistics chains. However, the business will not be calmer in the near future. The difficult labour market situation and the energy price shock are adding to the never-ending current challenges. The latter is expected to lead to another wave of raw material price increases. We try to anticipate and manage these risks as far as possible, and we are working on specific plans to minimise the impact on business. Recognising that these bumps in the road are not permanent, we continue to make strategic investments and develop new projects to increase our competitiveness in the global market," says Egidijus Valentinavičius, Vice President of SBA.

Egidijus Valentinavičius SBA photo
Egidijus Valentinavičius SBA photo

The companies managed by SBA Home are working at full capacity. This year, Klaipėdos Baldai sold production worth 62.7 million euros over the first nine months of this year, which is a 9% increase year on year. Visagino Linija saw its sales grow by a tenth over the year, reaching 59 million euros. The Šilutė region-based Germanika sold furniture worth 50 million euros, a 29% increase year on year. Šilutės Baldai saw sales increase by 19%, reaching 33 million euros. The Belarus-based Mebelain grew by 40%, reaching 32 million euros.

The soft furniture manufacturer Kauno Baldai sold production worth 20.5 million euros this year, an increase of a third year on year.

“The main focus is currently on strategic projects, which will increase the SBA companies’ competitiveness on the global market. These are the ongoing construction works of the new manufacturing complex at the SBA Industry Innovation Valley and the conversion of Kauno Baldai’s buildings,” E. Valentinavičius states. Equipment is currently being transported and installed at Inno Line, which is being developed near Klaipėda. A total investment of around €100 million will be made in several phases, with pilot production expected to start early next year. In Kaunas, Žemieji Šančiai, the frame of the new Kauno Baldai building is already going up. The value of this project is around EUR 20 million.

The SBA Group launched its ambitious expansion strategy this year, which will see no less than 300 million euros invested over the span of three years, creating 800 new jobs. The group is not only performing organic expansion and greenfield investments – but it is also seeking potential businesses for acquisition in Lithuania and abroad.

The SBA Group is one of Lithuania’s largest business groups. It operates in the furniture manufacturing, textile and real estate sectors. The group employs around 5,500 staff and exports its products to 50 countries worldwide, with its sales for 2020 reaching 342.5 million euros.

Report mistake

Successfully sent

Thank you