Vilnius, Lithuania, 2013-02-11 15:00 CET (GLOBE NEWSWIRE) -- Vilnius, 11 February: In 2012, Vilniaus baldai AB, a company engaged in furniture production, made an investment in the amount of LTL 12.3 million into modernization of equipment and implementation of up-to-date technologies. The Company paid a lot of attention to modernization and maintenance of production equipment, optimization of technological processes and increase in work efficiency.

In January of this year, Vilniaus baldai AB completed installation works of new calibration and mortising line , the cost of which reached LTL 10 million, and started continuous production. Installation of this line was launched in November 2012.  The installation was made by the specialists from a German company Homag Group. The facility is intended for processing of furniture part edges and mortising. At present, the line is under testing and adjustment works are carried out and also qualified operators are being trained and prepared. At the end of February of this year, Vilniaus baldai AB intends to start mass production employing this equipment.

In 2012, Vilniaus baldai AB, invested LTL 12.3 million of its own funds into equipment modernization. According to Renatas Rimkūnas, a production manager at Vilniaus baldai AB, the Company is currently not increasing its production output, as it still updates old and technologically outdated equipment. In 2013, the Company intends to continue modernization of production equipment and plans to invest another LTL 15 million into new equipment from its own funds.

Vilniaus baldai AB produces and sells to Swedish concern IKEA more than thirty different products. In 2013, the Company‘s product portfolio will change substantially: a part of products, which have been produced so far, will not be produced at all, while at the same time a production of sixteen new products will be launched. Investments of Vilniaus baldai AB into modern equipment will allow implementation of modern technologies and ensure compliance with quality requirements. R. Rimkūnas, a production manager, maintains that The Company intends to launch manufacturing of new products in stages: children‘s furniture will be started to be produced at the end of March of this year, while the Company will be fully prepared for production of other new products by the end of 1st half of this year.

Currently, Vilniaus baldai AB, actively cooperates with IKEA concern regarding introduction of additional new products and their  manufacturing is planned to start in the autumn of this year.

Wide new product portfolio introduction into production within a short period of time shows IKEA trust in our Company, and shows a remarkable ability to compete for orders. Vilniaus baldai AB intends to pursue implementation of strategy that involves seeking improvement in production quality and work efficiency, rational use of resources and reduction in costs.

Vilniaus baldai AB exports all its production to the Swedish concern IKEA. Lithuanian investment company Invalda AB holds a controlling interest in Vilniaus baldai AB. The shares of Vilniaus baldai AB are listed on the Official Trading List of the NASDAQ OMX Vilnius Stock Exchange.

         Renatas Rimkūnas
         Vilniaus baldai AB, production manager,
         tel. (8-5) 2525700