The effects of the pandemic on the continuity of production, the growing attention to raw material recycling, and the changing import conditions. These are the issues that many businesses working in the manufacturing segment are facing right now. Tomas Krejaras, Chief Executive Office of Achempak, UAB, Lithuania’s largest big bag manufacturer, is sharing his thoughts on the challenges of this year and the market trends.
In the words of Mr Krejaras, Nordic and Western European countries are becoming more and more agitated over meeting with the demands of circuit economy, and their focus on raw material recycling is growing by the year.
‘Consumers are becoming more and more concerned that the packaging is made from raw materials that could be recycled after first use. The amount of interest in packaging from recycled materials is growing as well. It is a trend that will continue into the future. The tendencies in Lithuania are the same: we have been working with recyclable products and recycling our secondary raw materials for a long time. I think each and every one of us should pause to think about sustainability in daily life as well,’ Achempak’s, UAB CEO Tomas Krejaras said.
Speaking of the challenges in the sector of big bags, Mr Krejaras mentioned the changing import conditions and changes in raw material prices.
‘Our field will be affected to a significant degree by the changing conditions of imports from Asian countries, owing to the drop in navigational capacity. With the costs of transportation growing substantially, this could be a chance for local businesses. Also, the prices of raw materials climbing around the globe will inevitably have an effect on product prices. We have to review our processes and look for areas where we can boost our operating efficiency,’ Achempak’s CEO said.
The head of the company says that they intend to focus on quality a lot.
‘I think 2021 will be the year when production will have to rely not only on efficiency, but on higher quality as well. By offering a product of high quality to our clients, we can gain an edge over manufacturers from the East. The company will be making investments into quality control this year – we are planning to purchase lab equipment that we could use to ensure better control of the quality of PE film,’ the company’s CEO said.
The company also has plans to launch a big-bag rolling machine to allow clients to implement automated big bag packaging solutions. The CEO of the company says it is highly relevant for the major clients in Lithuania, and this solution has long been in application in Scandinavian countries.
In the words of Mr Krejaras, the outbreaks of COVID-19 in a large number of manufacturing companies curb the volumes of services and production capacities.
‘Ensuring the continuity of production and the safety of our personnel continues to be a top priority. Things are different with manufacturing: we cannot organise teleworking. We have to organise the operations in a way that different shifts do not meet, we need to disinfect the facilities and test the staff constantly. Last year, we made a lot of efforts to protect our employees, and these efforts will continue this year. The demand on the big bag market does not ebb, which makes ensuring an uninterrupted manufacturing process so important,’ the company’s CEO said.
A member of Koncernas Achemos Grupė, Achempak, UAB is the largest manufacturer of big bags for product packaging, transportation, and warehousing in the country. The company sells its products in Lithuania and exports them to Latvia, Estonia, France, the United Kingdom, and other European and Eastern countries.