E-Malt.com News article: 3140

LITHUANIA: Viking Malt, with its operative centre in Lahti, Finland, has officially opened its new malting in Panevezys, Lithuania on 26 August 2004. Current and future customers, raw material suppliers and representatives of authorities, all in all around 150 guests visited the ceremony.

In addition to the new maltings of 60.000 tonnes annual capacity, the investment includes
- modernization of barley intake
- new silo capacity for malting barley
- modernization of the existing silo for malt storage and malt deliveries
- possibility to easily increase capacity up to 120.000 tonnes

The value of the investment is around EUR 28 million.

With this new production unit, together with the almost finished construction of a second malting house in Halmstad, Sweden, Viking Malt will have a total annual malt capacity of 340.000 tonnes.

At the opening ceremony Mr Harald Relander, Chairman of the Board of Polttimo Companies stated: "With this new investment in Lithuania together with the capacity expansion in Halmstad Sweden, Viking Malt will be well equipped to supply customers with reliable malt in the years to come".

This investment is based on careful studies, including also other locations in the Baltic area. The location in Panevezys was chosen due to its several advantages:
- Lithuanian farmers can supply the raw material, malting barley, for the malt house and Panevezys is located in the heart of the best grain cultivation area in Lithuania. The total barley production in Lithuania is around 800.000 tons every year.
- The rail and road connections from Panevezys to the Lithuanian breweries and to other Baltic countries are very good.
- There is space enough on the site for additional expansions in the future.

The malting barley demand of the new malt house will be up to 80.000 tons per year, which is equivalent to a cultivation area of 20.000 - 25.000 hectares. It offers new opportunities for the local farmers to develop and market their crops. In addition, the procurement of barley and the deliveries of malt need transportation services for more than 140.000 tons/a.

The beer production and beer consumption in Lithuania have developed fast in recent years. The need for malt in Lithuania was last year more than 50.000 tons and is expected to grow even more in the future. The same applies to other Baltic countries and in the other neighbouring countries of Lithuania, where there is a deficit of locally produced malt, giving Viking Malt opportunities for export, which already has started successfully.

"With this new top-modern malting house we have reached one step of our goal being the reliable malt supplier of our customers. We aim at ease-of-doing business, meaning that we can offer our customers the raw material and service they need cost-effectively" says Mr Bengt Ohlsson, Managing Director of Viking Malt.


Background information

The ownership of Viking Malt Oy is divided between Polttimo Companies and its owners in Finland (62.5 %) and Svenska Lantmannen in Sweden (37.5 %).

Viking Malt has been present in Lithuania since 1997, in a joint venture owned malt house – today known as UAB Viking Malt (85.3 %), together with the largest brewery in Lithuania, Svyturys Utenos Alus (14.7 %).

26 August, 2004