PET Baltija, one of the largest PolyEthylene Terephthalate (“PET”) recyclers in Northern Europe and part of Eco Baltia, the largest waste management and recycling group in the Baltics, today announces the investment of over €10 million as part of the development of a new PET recycling plant in Olaine, Latvia.
This joint project is being delivered by Eco Baltia, which is backed by the INVL Baltic Sea Growth Fund, in collaboration with Piche, a leading industrial park developer in Latvia. The total investment exceeds €35 million.
The plant will be one of the largest and most modern PET recycling factories in Europe and one of the largest industrial buildings in Latvia. Its total indoor area, including production facilities, well-equipped office space and various shared facilities, will reach a total of ~30,000 square meters. The outdoor area will also cover ~40,000 square meters. As part of the project, PET Baltija’s existing Latvian factory in Jelgava will be relocated to the new production facility in Olaine over time.
Māris Simanovičs, Chairman of the Board at Eco Baltia, commented:
“In recent years, we have pursued a rapid development strategy for the Eco Baltia group in the Baltics and beyond. In addition to its organic growth, we have also acquired several companies to ensure the production of the best possible final product in PET recycling as well as expanding our offering for environmental management.”
Simanovičs, continued:
“This development of a new PET Baltija factory is one of the most ambitious business expansion projects by Eco Baltia in recent years. The main objective is to increase the food grade rPET pellets production capacity and provide the necessary conditions for the company’s further development, as well as to strengthen our market share within the European market. This will undoubtedly create additional value for our customers and partners respectively, as well as provide better working conditions for our employees.”
With the factory currently under construction, the plant’s initial phase was celebrated in early May. This marked the installation of the first production equipment located within one of the completed production areas.
Salvis Lapiņš, Chairman of the Board at PET Baltija, added:
“This year, the company celebrated its 20th anniversary, having demonstrated that Latvian companies can be significant players in the recycling industry on the European stage. More recently, we are progressing the development of a new factory that will ultimately allow us to more than triple our food grade rPET pellets production capability while also improving efficiency, productivity and set new standards in PET recycling technologies.”
The supplier of the recycling equipment is Starlinger, an Austrian manufacturer and one of the world’s leading developers and manufacturers of recycling technologies. In Europe, only two production plants currently have Starlinger equipment of this level already installed, while globally there are only ten examples. Therefore, the PET Baltija factory will also technologically be one of the most modern PET recycling factories in Europe and in the world more broadly.
Deimantė Korsakaitė, Executive Partner at INVL Baltic Sea Growth Fund and Chairman of the Supervisory Board at PET Baltija, commented:
“As part of our strategy, we aim for significant expansion and development of our portfolio companies to become bigger, more efficient and better developed in all aspects, including a better workplace for employees. This step is significant and will move an already international company to its next stage of development. It will progress PET Baltija further forward on the map, as not only a regional but also a European level, for the most modern and efficient recyclers contributing to world’s sustainability drive.”
The new PET Baltija’s recycling factory and industrial park is developed by the leading industrial building developer in Latvia, Piche.
According to Piche CEO Pēteris Senkāns, the PET recycling plant is one of the company’s largest and most complex projects of the year.
Senkāns commented:
“Like other industrial parks developed by Piche, this project also adheres to the highest of energy efficiency standards. We are pleased that our extensive experience and competence were chosen for the implementation of this project, allowing the construction of a modern industrial building that meets the current requirements for the construction industry.”
Following the sustainability strategies of Eco Baltia and PET Baltija, which aim to reduce resource consumption and promote a circular economy, the building will comply with the BREEM® sustainable construction standard and will be fully powered by renewable energy.
The factory will also have unique wastewater treatment equipment which will also significantly reduce the consumption of chemical substances in the wastewater treatment process. In addition, the factory will have a highest of standards air recuperation system which will reuse excess heat energy generated during the PET melting for heating of the building. In accordance with the ESG strategy, significant attention is being paid to employee well-being and working conditions, in order to provide the highest of work safety standards, ergonomic and comfortable workspaces, as well as shared and recreational spaces.
PET Baltija’s relocation is planned in several stages, gradually shifting all PET Baltija production from Jelgava to the new factory in Olaine by the end of Q1’2024. The total number of jobs at the new factory will then exceed 250.
About PET Baltija
PET Baltija is one of the largest PET recyclers in Northern Europe and the largest PET recycler in the Baltic region operating in Latvia. It belongs to Eco Baltia, the largest environmental and waste management group in the Baltics. Eco Baltia provides full-cycle waste management solutions from waste collection and sorting to secondary raw material logistics, wholesale and raw material processing. PET Baltija implements the recycling of used polyethene terephthalate (PET) bottles and is the industry leader on the Baltic scale. The recycled product portfolio includes high-quality PET flakes and granules (including food packaging), of which nearly 100% are exported.
In 2022, Eco Baltia’s pro-forma revenues reached EUR 240 million, compared to EUR 150 million in 2021. In September 2022, Eco Baltia continued to expand, with AS PET Baltija acquiring TESIL Fibres, a leading Czech fibre producer, and Eco Baltia vide acquiring street and road maintenance company SIA Pilsētas Eko Serviss in January this year.
The Group employs more than 2,300 people in Latvia, Lithuania and the Czech Republic, and its largest companies are PET Baltija, Tesil Fibres, Nordic Plast, Eco Baltia vide, Ecoservice, Latvijas Zaļais punkts, JUMIS and SIA Pilsētas Eko Serviss.
The shareholders of Eco Baltia are INVL Baltic Sea Growth Fund through UAB BSGF Salvus (52.81%), the European Bank for Reconstruction and Development (30.51%) and the company’s management (16.68%).
About INVL Baltic Sea Growth Fund
With a size of EUR 165 million, the INVL Baltic Sea Growth Fund is a leading equity fund in the Baltics. The European Investment Fund (“EIF”) is its anchor investor.
The EIF, which is a part of the European Investment Bank, has committed EUR 30 million with the support of the European Fund for Strategic Investments (a key element of the Investment Plan for Europe, or ‘Junker Plan’) whilst also allocating resources from the Baltic Innovation Fund, a “fund of funds” initiative developed in cooperation with the governments of Lithuania, Latvia and Estonia. The initiative aims to increase capital investment in high-growth potential small and medium-sized enterprises in the Baltics.
The fund seeks to assemble a diversified portfolio of companies, targeting majority or significant minority stakes through investments ranging from of EUR 10 million to EUR 30 million. These companies must demonstrate high growth potential and an ability to succeed in conditions of increasing global competition and market volatility.
The fund is focused on the Baltic countries and neighbouring regions including Poland, the Nordics, and Central Europe. The fund has invested in seven companies to date, focusing on sectors including healthcare, medical rehabilitation, civil engineering, environmental management (plastic recycling and waste management), veterinary services, and the manufacturing of cosmetics and hygiene products.
The fund is managed by INVL, the leading Baltic investment management and life insurance group. The group’s companies manage pension and mutual funds, life insurance directions, individual portfolios, private equity as well as other alternative investments. More than 300,000 clients in Lithuania, Latvia and Estonia plus international investors have entrusted the group with the management of over EUR 1.9 billion of assets. With a track record spanning 30 years, the group has strong expertise and experience in managing private equity assets and building true market players that are leaders in their respective fields in the Baltic countries and across Central and Eastern Europe.
About Piche
Piche is a construction company with 18 years of experience in building industrial and residential buildings. Company gas completed more than 150 projects and employ a team of approximately 200 people. In 2021, the company had a turnover of 22.134 million euros and a profit of 5.828 million euros. The company was registered in 2005, and its owner is Pēteris Senkāns.
