2020-05-29

All SBA’s Furniture Companies Operate at Full Capacity

The companies of the biggest furniture sector in the Baltic States owned by SBA Group have fully resumed their operations and work at full capacity starting today. The scope of operations in some of the factories has already reached the pre-pandemic level.  

“All five of our furniture factories in Lithuania have turned on their production lines at full capacity and will continue working incessantly and in all shifts. Simultaneously more than three thousand employees of SBA’s furniture sector returned from furlough. The export markets in Asia and Europe gradually recover along with improving indicators of the pandemic and lifting restrictions applicable the phases of quarantine, thus we are shifting to the top gear a couple of weeks ahead of the plan. Considering the mood currently observed on the market, we hope to stay busy at least throughout the summer”, Egidijus Valentinavičius, the Vice-President of SBA said.

“Klaipėdos baldai” and “Visagino linija” have returned to the usual rhythm of work starting today. “Šilutės baldai” and “Germanika”, which operate in Šilutė, started continuous work last week, whereas “Kauno baldai”, the manufacturer of upholstered furniture, resumed production at the beginning of May.

Having fully stocked their warehouses, the majority of SBA’s companies operating in the furniture sector suspended their operations at the end of March and resumed work only intermittently. According to E. Valentinavičiaus, the last two months will affect the performance results of the furniture sector of the whole year; however, the prognoses for the second half of the year are moderately optimistic. Essentially the situation will depend on further control of the pandemic and successful prevention of new outbreaks and related restrictions. This applies not only to Lithuania due to the fact that even 95 percent of the products manufactured by SBA’s furniture sector are exported to the European, American, and Asian markets.

Currently, most of the orders at the four frame furniture factories managed by “SBA Furniture Company” have almost reached the pre-pandemic level by almost 100 percent, whereas production of some other groups of furniture already exceeds the normal level. There was a demand for some of the most popular products of “Kauno baldai”, the manufacturer of upholstered furniture, even during the peak of the pandemic, but it was decided to return to work upon accumulation of a larger number of orders enabling to engage in a maximum production scope rather than taking it one step at a time.

“The most important objective is the health and safety of our employees, thus we took it upon ourselves to implement lots of additional safety measures at all factories. In order to protect our employees, we take the temperature of the staff coming to work on several levels at all companies, all employees wear protective masks in addition to frequent disinfection of the premises and limited workshop meetings and gatherings”, E. Valentinavičius said.

SBAcompanies take the opportunity to introduce innovations and measures designed to improve production efficiency even during the quarantine: they design, develop, and install equipment on the production lines themselves. In April the Logistics Centre managed by “Innovo logistika” at SBA Technology and Innovation Park in Klaipėda District started operations in order to facilitate more efficient organisation of the supply chain for the furniture manufacturers to ensure faster delivery of the products to stores all over the world. Construction of a new plant of SBA set to specialise in production of components and blanks near the Logistics Centre is gaining momentum and it is expected to be finished this year already.

The sales of the companies in SBA’s furniture sector amounted to 319 million Euros last year.

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