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PakMarkas: the packaging markets of Lithuania and Latvia are mending

In 2010 sales of the PakMarkas Company, which offers packing and marking solutions, in Lithuania increased by 8.25% and reached 49.84 million litas. In 2009 the turnover was 46.04 million litas. The profit from label production rose by 21%, and the profit from selling gears and automation elements rose by 20%. The increase in both output and sales was encouraged by export. In comparison to 2009, when the profit for exported goods was 11.39 million litas, in 2010 the export volume grew by 36.4% and accrued to 15.54 million litas.

“Last year the situation returned to its previous state, and the profit began to rise again,” said Virginijus Gumbaragis, the Director General of the PakMarkas, UAB. According to him, in 2010 the need for packages for luxurious purposes decreased, but the demand for daily use products rose, thus, the sale of labels and standard packing materials went smoothly and gradually. Furthermore, it is possible to notice the rapidly growing demand for such packing method as product packing in a protective atmosphere (modified atmosphere packaging).

“We have noticed that last year the Lithuanian companies were not inclined to make long-term investments in new packaging lines and innovative packaging solutions, but the beginning of this year is quite optimistic: the engineering area is revived, the companies carry out new projects and plan investments again,” said Gumbaragis while mentioning the main market tendencies.

The results of the subdivision in Latvia reveal that the packaging market in the neighbouring country is also mending. Last year the sales of the PakMarkas, SIA in Latvia increased by 12.37% to 9.05 million litas. The consolidated profit of PakMarkas in Lithuania and Latvia in 2010 grew by 8.17% and reached 53.06 million litas.

Established in 1994, the company PakMarkas, which specializes in production of self-adhesive labels, printing of packages, and selling packing and marking equipment and its spare parts, spreads its activity in Lithuania and Latvia. In 2005 the company became the member of the international initiative Global Compact of the socially responsible companies, with obligation to perform its activities in accordance with human rights, employee rights and environment protection principles and do not contribute to the spread of corruption. In 2009 PakMarkas, UAB was acknowledged as the Employer of the Year in the category of small and medium-sized businesses by the Ministry of Social Security and Labour, the Ministry of the Economy and the Ministry of the Environment of the Republic of Lithuania under the United Nations Development Programme in Lithuania.