Leading European PET resin producer NEO Group has responded to growing regional PET demand with the inauguration of a new 160,000 tpa line at its Baltic plant at Klaipėda in Lithuania.
With the line's launch last month (June), overall output at NEO's port city site which operates two other PET units, will reach around 480,000tpa when the extra capacity is fully producing.
NEO Group's expansion project at the site in the city's Free Economic Zone (FEZ) will have proved a cost effective option, leaving the company Europe's second ranked and most competitive PET manufacturers.
New capacity will help reinforce Vilnius, Lithuania-based NEO Group's reputation “as a reliable international supplier”, according to group chairman Paulinius Ambrazaitis.
“The new production line will further strengthen our (leading) position and we will be ready to meet the ever growing needs of the EU market. Increased capacity will (also) help us expand the geography of our sales,” the chairman added.
NEO's latest €50m capacity project has led to the provision of a further 35 jobs at the plant along with additional indirect employment in the area.
Once the extra PET capacity is fully utilised, the group expects its annual revenue to exceed €500m, of which €400m will represent export sales.
At the sustainable Klaipėda production site, NEO Group's two polyol manufacturing lines are integrated, making use of waste from the PET output as raw material. In 2014, a bio-boiler unit went into operation which has helped it lower annual CO2 emissions by 30,000 tonnes.
NEO is investing in energy saving programmes allowing it to reduce electrical energy consumption by some 4 million kWs and water consumption by 20,000m3 per year, the firm in a statement this month announcing the expansion.
It is aiming to take advantage of the favourable investment climate to initiate further investment and development in Lithuania, NEO Group added.