In Brief - 2003-01-09

Norma in anticipation

Norma, the Estonian car safety equipment maker, has not yet decided possible shortening of working hours or a partly paid leave, relying on unofficial information from Russia. Export makes up 98 percent on Norma's output, and 52 percent of it goes to Russia.

According to company Chairman Peep Siimon, the whole picture is quite confusing at the moment, and Norma would make no decisions on the basis of rumors and was waiting for official information from its client, Russia's AvtoVAZ. Siimon added that preparations were now underway to put its conveyer belts into operation Jan. 8, and the company would then see how its sales would go and what plans it would make for the future.

Norma announced Dec. 17 that in connection with the crisis in the Russian automotive industry it would establish shorter working hours and a partly paid leave for its employees on Jan. 2 and 3 and Jan. 20 - 31. (Baltic News Service)

Aldaris posts record results

Latvia's top brewer Aldaris reported sales of 84.3 million liters of beverages in 2002, up 11 percent year-on-year, including an 18 percent rise in sales on the local market.

Regarding beer, the brewer sold 53.2 million liters last year, up 17 percent on the previous year, adding that these posts are unseen amounts in the company's history. The largest growth in beer sales last year was reported for Aldaris' brand beer, which makes up 26 percent of the company's beer output.

Mineral water bottled by the company was sold 11 percent more than the previous year and non-alcoholic beverages 15 percent more. (BNS)

Telephone competition on hold

The fixed-line services monopoly of Lietuvos Telekomas (Lithuanian Telecom) expired on Jan. 1, but it will be several months before more players enter the country's fixed-line market due to upcoming negotiations with Lietuvos Telekomas and legal procedures, the business newspaper Verslo Zinios reported.

Tele2 is so far the only mobile operator to have announced plans to launch fixed-line services by late March of this year. Nacionalinis Telekomunikaciju Tinklas, a local company grouping together cable televisions, had intended to offer Internet telephony services and become Lietuvos Telekomas' competitor on the fixed-line services market in January, but now the company is declining to name the exact date for launching its new services.

The Communications Regulatory Service has not received a single statement from the country's undertakings about the provision of fixed-line services. The regulatory authority has only received unofficial information from Tele2 and the little-known local company Linktelis. (BNS)

Baltic paper chase

AS Infotark, operator of the Estonia's Buromaailm (Office World) chain, bought 70 percent of shares in Lithuania's third biggest stationery stores chain, UAB Kela, the firm reported.

Before the deal, 45 percent of the Lithuanian firm belonged to Baltics Small Equity Fund, which sold its holding, and the rest to Lithuanian private shareholders. UAB Kela managing director keeps 30 percent of the shares. The parties have decided not to disclose the price of the deal.

Expansion to Lithuania is one of AS Infotark's plans to build up a Pan-Baltic service model with the aim of providing similar products at the same prices and the same level of service in all the three Baltic countries. AS Infotark has seven stores in Estonia and boasts a market share of 25 percent to 30 percent in Estonia. (BNS)

Rail car contracts signed

Two Latvian companies specializing in production and renovation of railway cars have reached an agreement with Russia's second largest railway company, Oktyabrskaya Zheleznaya Doroga, for some 5 million lats' (8.1 million euros) worth of rail car repairs.

Latvian companies Rigas Vagonbuves Rupnica and Lokomotive, along with OZD, will sign the tripartite contract in January, said RVR head Valerijs Igaunis. Under the contract, RVR and Lokomotive will have to repair a total of 204 railway cars for the Russian customer. It is not known yet how many cars will be handled by each of the companies, Igaunis said, adding that RVR and Lokomotive will probably split the contract close to fifty-fifty. (BNS)

Shippers might be sold this time

The Lithuanian State Property Fund said that investors are showing interest in the privatization of two shipping companies, Lietuvos Juru Laivininkyste and Klaipedos Transporto Laivynas.

"There is sufficient interest in the two shipping companies," Liutauras Radzevicius, head of the SPF transactions division, said Jan. 2. The property fund said public tender packages for the 66.66 percent stake in LJL were available for acquisition starting Jan. 3.

According to information that has not been officially confirmed, the SPF has already received some applications to buy tender packages for 80.89 percent of shares in KTL.

KTL's public tender packages are available for acquisition until Jan. 22 and LJL's public tender packages until Feb. 26. Bids for KTL will be accepted on Jan. 22 - 23, while bids for LJL will be accepted on Feb. 26 - 27.

Two earlier attempts to sell the state's holding in KTL were unsuccessful. (BNS)