In Brief - 2003-02-06

Parnu courts Ireland's Ryanair

Estonia's Parnu Airport has sent Ryanair, the Ireland-based discount carrier which has shown interest in the Baltic market, a proposal to start using its services, the daily SL Ohtuleht reported. There has been no response from Ireland yet.

"I sent Ryanair a proposal to start using our services if it launches flights to Estonia. I described our situation, our advantages and shortcomings," Parnu Airport sales director Tiit Paananen said. Paananen said the advantages of the airport, just two kilometers away from the country's summer capital, were its good location and low load.

Toomas Peterson, general director of the Estonian Aviation Administration, said he could not say whether Parnu Airport could daily serve big passenger liners. "But I know that Parnu has really turned to Ryanair. To be able to say whether they are suitable, it is necessary to know the technical characteristics of the aircraft, the weather and many other things." (Baltic News Service)

Cesu to double the suds

Latvia's Cesu Alus brewery has mounted six new Finnish beer brewing tanks which should allow the company to double beer production.

The new equipment, bought by the Finnish controlled brewery, is part of this year's investment plan for Cesu, which expects investments of 1 million euros by March this year. The company said that the new tanks should be running by April, the beginning of the new beer season.

Cesu Alus previously had an output capacity of 10 million liters per year, while this year the brewery plans to boost sales by 90 percent to 19 million liters. The company said that output capacity had been increased following last year's bitter experience when the company was unable keep up with demand. (BNS)

Lithuanian beer forever

Ragutis, one of Lithuania's largest breweries controlled by Finland's Olvi, posted revenues of 61.2 million litas (17.7 million euros) for 2002, a rise of 27.6 percent from the 2001 figure.

Audrius Miksys, managing director of Ragutis, said the turnover growth was fueled by a number of factors, including the company's own efforts and the overall situation on the country's beer market. "A successful introduction of the Horn brand onto the market had the biggest impact," Miksys said. "It is obvious that the new product has worked out well. Horn Premium was granted the AgroBalt 2002 and Lithuania's Product of the Year awards last year," he added.

The company will be seeking to strengthen its position on the cider and beer markets this year and expects to raise its annual turnover by 15.7 percent to 70.8 million litas. (BNS)

Norma to cut 60 jobs

The Estonian labor inspectorate has given permission to the car safety components maker AS Norma to terminate contracts with 60 employees.

Citing a significant reduction in output, the Tallinn-based company that is majority-owned by Sweden's Autoliv sought permission for collective cancellation of employment contracts. The labor inspectorate granted its consent and approval for termination of employment contracts with 60 employees. The planned downsizing affects 6 percent of the total number of positions, according to Norma officials.

In addition, the company will make a proposal to its employees to enter into an agreement on reducing the working time from eight hours to six hours per working day during February and March 2003.

The company said that the depression in Russia's automotive industry was having a direct impact on the sales volumes. According to plans disclosed by AvtoVAZ, the output of vehicles in the first-quarter of 2003 will decrease approximately by 40 percent compared with the same period last year. (BNS)

Merks sees turnover plunge

The Latvian construction company Merks reported its unaudited turnover in 2002 as 4.1 million lats (6.5 million euros), a 33 percent drop from 2001.

In 2001 Merks achieved a net turnover of 6.2 million lats and earned a profit of 27,100 lats. Merks said falling sales were due to the company having started on construction contracts which will be completed only this year. In 2003 Merks expects annual turnover of 17 million lats.

The company said the forecast was realistic because it has already seen a turnover of 1.8 million lats this January alone. The largest on Merks' projects under construction are the office center Saules Akmens in Riga that would serve as the central office for Hansabanka and a supermarket for Rimi Latvia food store chain, as well as the Marasciems village of private cottages on the outskirts of the Latvian capital. In two years a total of 78 cottages are to be built in Marasciems. (BNS)

Snaige still cranking out fridges

Lithuania's Snaige announced preliminary sales of 18.5 million litas (5.3 million euros) for January, up 18.5 percent from the same period last year.

Romualdas Raudonis, managing director of Snaige, said the monthly results had not only exceeded the figure in the same period last year but also beat the turnover target set in the business plan for 2003. "When we were setting the target we found the trends on Western markets poorer than they actually were. We encountered a favorable situation on the market, particularly in Germany, where we took part in a number of promotional events. Moreover, we increased sales in Ukraine," Raudonis said.

Exports accounted for 95 percent to 96 percent of the company's total output in January. (BNS)