AB Linas Agro Group sold the rest of lignin accumulation.
AB Linas Agro run by AB Linas Agro Group has sold property belonging to UAB Fossio – a part of lignin accumulation, real estate and equipment – to UAB Alternatyvus Biokuras for LTL 6.15 million.
In January, lignin raw material accumulation in Zabieliskis village in Kedainiai region was split into two parts, and UAB Fossio has been separated from the company UAB Lignineko together with 400 thousand cubic meters of lignin, some real estate and equipment. In May UAB Lignineko with approximately the same assets was sold to the company UAB ECT Trading. The Group looked for another buyer for the other part of lignin accumulation.
Lignin is a raw material for biofuels, but also has other application areas.
“Having acquired UAB Lignineko in May 2010 for nearly 2 million litas we planned marketing of lignin as a raw material for biofuel, installed lignin drying equipment.
In order to obtain a higher added value, we tested other lignin usage options, like production of plant substrates as lignin is a perfect base for plant substrates.
However, we decided that the sale of substrates is too small business for our Group. Therefore, we looked for potential buyers for lignin accumulation, and even divided the lignin stock into two parts and basically prepared the ground for smaller businesses. Total investment in the project was LTL 8.4 million and earnings gained were LTL 14.45 million, therefore total return of the investment was 72 percent and annual – 18 percent”, says Finance Director of AB Linas Agro Group Tomas Tumėnas.
UAB Fossio itself remains the property of the Group.