In Brief - 2003-03-13

Lithuanian railroad profits soar

Lietuvos Gelezinkeliai (Lithuanian Railways) reported an unaudited pretax profit of 22 million litas (6.3 million euros) for 2002, more than an eightfold increase from the previous year, while the company's revenues grew by 24.9 percent to 757.8 million litas.

"The good results for 2002 were due largely to a rational use of resources," Jonas Birziskis, CEO of Lietuvos Gelezinkeliai, said in a news conference.

According to unaudited data, the rail company posted a profit of 178 million litas from freight transportation, but suffered a loss of 90 million litas from passenger carriage. Also, a revaluation of fixed assets pushed down the company's 2002 earnings figure by 68.8 million litas and increased the costs by the same amount.

Lietuvos Gelezinkeliai recorded a 25.6 percent increase in freight traffic in 2002, to 36.6 million tons, the highest annual level over the past 8 years. (Baltic News Service)

Swedfund back in Latvia

Swedfund, a venture capital investment fund managed by the Swedish Trade Council, announced it is launching a new series of investments in Latvia.

Stig Friberg, the Swedish trade commissioner to Latvia who will manage Swedfund's operations in the Baltic country, said, "The climate for investments in Latvia has continued to improve during the last years." For this reason the fund will look at projects requiring investments of 5 million - 50 million Swedish kroner (5.4 million euros) that require a minimum of five years.

"The intention is to provide technological and industrial transfer of know-how to the Latvian company," said Friberg. "In order to do that you need at least five years of close cooperation."

Friberg said that while investing in projects it was important for Swedfund to have a strategic and financial partner share the risk.

In 1995 Swedfund invested 21.5 million kroner in AirBaltic, which was subsequently sold to SAS for a profit of 25.5 million kroner.

Swedfund is 100 percent owned by the Swedish government and has been operating for more than 20 years. (The Baltic Times)

Sporting goods firm to lay off less

AS Viisnurk, the Estonian sports goods and wooden products maker, has revised its plan to lay off 106 workers at its ski factory and will dismiss no more than 50 people thanks to improved market conditions.

In remarks to the regional Parnu Postimees newspaper, CFO Andrus Aljas said that orders for next season were coming in at a good rate. The Parnu-based company has concluded deals with such major brands as Rossignol, Exel and Skilom and is now in the process of signing the agreements.

Also, the production and sale of hockey sticks is increasing as planned, said Aljas. "The [lay-off] notices many people at the ski factory received in January have been recalled," he said.

As the company has wound down manufacturing of older skis, production can now be arranged in a more rational and simple way, said Skilom. (BNS)

Holidaying down on the farm

Rural tourism in Lithuania attracted 11,200 holiday makers in the first two months of this year, a rise of 19 percent over the same time a year earlier.

In February of 2003, the number of rural tourists grew by nearly 18 percent year-on-year to 6,100, according to the Lithuanian Rural Tourism Association.

Farmsteads in the Aukstaitija region attracted the largest number of holiday makers (4,600) in the two months, followed by the Zemaitija (4,100) and Dzukija (2,500) regions.

At the international fair of tourism, sports and recreation Vivattur 2003, which will take place March 14 - 16, the association is to present a new rural tourism and crafts information and booking system. In late March, representatives of the association will present Lithuania's rural recreation in Russia. (BNS)

New office park for Riga

England's company Newdale Developments plans to set up a bureau, logistics, production and other commercial activities complex in Marupe county near Riga and Riga International Airport, with total investments in the project estimated at 35 million euros.

John Birchmore from Newdale Developments told a news conference the company has already closed a contract on the lease of a 10-hectare plot for the construction of the business, technology and distribution complex Baltijas Biznesa Parks. He said preparatory works were under way and construction of the first building is planned soon. All in all the project will involve construction of 10 buildings.

John Christmas, owner of Gudrais Gulbis, the firm that will develop the complex and survey potential clients, said completion of the park could be expected in two years if demand is high. (BNS)

Giant drying drum built

Tallinn-based Dvigatel Teno has made the largest product in recent years - a drum for drying sawdust with a length of more than 32 meters and a diameter of 6 meters that weighs 268 tons.

It took the firm about three months to make and assemble the drum, which is a part of a timber processing facility that Finland's Metso Corporation is building in Sweden, Dvigatel Teno reported. Sales director Kristo Anton said that the drum would have to be dismantled into nine pieces for delivery, which will be then taken by trucks to a Sweden-bound ship.

Dvigatel Teno exports more than 90 percent of output, with Scandinavian countries serving as its main buyers. (BNS)