AB Linas Agro Group sold UAB Lignineko.
AB Linas Agro run by AB Linas Agro Group sold 100 percent cent shares of UAB Lignineko to UAB ECT Trading for 4,550,074 litas.
Before that, in January, UAB Fossio was separated from UAB Lignineko together with half of lignin raw material accumulation in Zabieliskis village in Kedainiai region, having about 400 thousand cubic metres of lignin. UAB Lignineko owns the other half of the lignin stock.
“Having acquired UAB Lignineko in spring 2010 for nearly 2 million litas we planned marketing of lignin as a raw material for biofuel. However, while performing tests of lignin usage we realized that its use is not limited to energy. Lignin is an excellent raw material for production of plant substrates, also has other application areas. During several years we have been exploring the possible usage areas of lignin and the potential profitability of each business. We found that all these businesses are too small for our Group as generate less than 1 percent of the total income, also is not related to our other activities. Therefore, we decided to sell a half of lignin accumulation to UAB ECT Trading to ensure the investment pay off”, says Finance Director of AB Linas Agro Group Tomas Tumėnas .
The other half of lignin accumulation along with UAB Fossio remains the property of the Group.