Panevezys, Lithuania, 2014-06-20 08:00 CEST (GLOBE NEWSWIRE) --
AB Linas Agro run by AB Linas Agro Group has sold property belonging to UAB Fossio - a part of lignin accumulation, real estate and equipment - to UAB Alternatyvus Biokuras for LTL 6.15 million.
In January, lignin raw material accumulation in Zabieliskis village in Kedainiai region was split into two parts, and UAB Fossio has been separated from the company UAB Lignineko together with 400 thousand cubic meters of lignin, some real estate and equipment. In May UAB Lignineko with approximately the same assets was sold to the company UAB ECT Trading. The Group looked for another buyer for the other part of lignin accumulation.
Lignin is a raw material for biofuels, but also has other application areas.
“Having acquired UAB Lignineko in May 2010 for nearly 2 million litas we planned marketing of lignin as a raw material for biofuel, installed lignin drying equipment.
In order to obtain a higher added value, we tested other lignin usage options, like production of plant substrates as lignin is a perfect base for plant substrates.
However, we decided that the sale of substrates is too small business for our Group. Therefore, we looked for potential buyers for lignin accumulation, and even divided the lignin stock into two parts and basically prepared the ground for smaller businesses. Total investment in the project was LTL 8.4 million and earnings gained were LTL 14.45 million, therefore total return of the investment was 72 percent and annual - 18 percent", says Finance Director of AB Linas Agro Group Tomas Tumėnas.
UAB Fossio itself remains the property of the Group.
About AB Linas Agro Group
AB Linas Agro Group is an agribusiness parent company engaged in the production and trade of grains, oilseeds, feedstuff, poultry and poultry products, also agricultural inputs. It controls companies in Lithuania, Latvia, Estonia and Denmark. The group consists of international agricultural production trading company in Lithuania AB Linas Agro, grain storage company UAB Linas Agro Grūdų centras KŪB (controlling grain storages in Joniškis, Kėdainiai, Kupiškis, Pasvalys, Šakiai district, Šiauliai and Vilkaviškis), Latvian trading company SIA Linas Agro, international trading company Linas Agro A/S in Denmark, group of companies ŽŪB Landvesta, managing agricultural land, holding of agricultural companies UAB Linas Agro Konsultacijos, agricultural inputs supplier UAB Dotnuvos Projektai, logistic company UAB Jungtinė Ekspedicija, poultry companies AS Putnu Fabrika Kekava and SIA Lielzeltini, also other companies. The financial year of the Group begins on 1 July. The total headcount of the Group exceeds 2,200 employees. Consolidated revenue of AB Linas Agro Group of nine months of 2013/2014 financial year ended March 2013 totalled LTL 1,581 million, EBITDA – LTL 75 million.
From 17 February 2010 AB Linas Agro Group is included in the main list of companies of NASDAQ OMX Vilnius stock exchange.
Finance Director of AB Linas Agro Group
Mob. + 370 682 36 616