The well-established company produces particleboards and flat-pack furniture and counts IKEA among its customers.
The loan will assist the company in modernising its production capacity. Vilniaus Baldai will build a new state-of-the-art manufacturing plant to replace its current facilities and consolidate its operations in one location. It will also lead to a significant reduction of carbon dioxide emissions, energy consumption and solid waste production.
The new facility has been designed in line with the industry’s best standards and practices and in close cooperation with IKEA, the company’s main customer for more than two decades. It will allow Vilniaus Baldai to increase capacity, product quality and meet clients’ growing demand.
Matti Hyyrynen, EBRD Head of the Baltics, said of the transaction: “We are always happy to support the expansion of thriving businesses such as Vilnaius Baldai. The company’s focus on efficiency improvements will contribute to the reduction of environmental damage while also allowing them to grow. Supporting the development of the green economy in the Baltic states is a key priority for the EBRD, and we are happy to partner with Citadele in the pursuit of this goal.”
Vilniaus Baldai offers a wide product range from simple to complex and multifunctional furniture, with a speciality focus on children’s furniture. For IKEA it has been producing lightweight particleboard furniture since 1997.
