“Žalvaris”, the largest industrial waste management company in Lithuania, belonging to the “GreenGroup”, a leading circular economy enabler in Central Europe, has announced signing the acquisition contract with the wood pellet producer “Granulita”. Subject to clearance from the Competition Council of the Republic of Lithuania, the transaction is expected to be completed by the end of the second quarter of this year.

Overall, “Granulita” production amounts to 100,000 tonnes of wood pellets annually. The company’s high-quality products are intended for industrial use and fuel production for power plants supplying green electricity and heat. The acquisition will provide “Žalvaris” with more sustainable options for managing raw wood recovered from waste, creating new sources of revenue and contributing to the growth of the “GreenGroup” as a whole.

“Žalvaris” has been providing wood waste management as one of its comprehensive services to customers for some time now, treating various types of wood waste and preparing it as a secondary raw material for production, composting and fuel. In 2023, the company managed 63,000 tonnes of industrial waste, including 6% of wood waste.

“Wood as a raw material is used in a wide range of industrial sectors, including furniture manufacturing, construction, and primary wood processing, thus generating the highest amounts of this waste. The acquisition of the wood processing plant will allow us to direct our wood waste management operations into two processing flows: generating secondary raw material on the first one and generating the raw material suitable for the production of high-quality certified wood products on the second one,” says Vitoldas Sapožnikovas, the CEO of “Žalvaris”.

According to Mr Sapožnikovas, the market demand for wood waste management, including wooden packaging, waste from the furniture industry and forest waste, is high and constantly growing, which reflects the need for specialised services from industry players and therefore encourages the expansion of existing capacities and the search for sustainable solutions for waste recycling.

The new acquisition aligns with the growth strategy of the “GreenGroup”, the corporate group which “Žalvaris” joined in 2023. The strategy is based on promoting circularity in the industry and focusing on strengthening the position of the “GreenGroup” as a leading circular economy enabler in Central and Eastern Europe.

Meanwhile, “Žalvaris” already owns a wood waste management company “Žalvaris Wood” and the company “Žalvaris Autoscrap” that manages end-of-life vehicles.

The “Granulita” management team will continue to work in the “GreenGroup” after the transaction and aim to maintain the company’s current course of action and growth. It is planned that “Granulita” will remain an independent company within the “Žalvaris” group of companies, further expanding its product range and seeking synergies with the “GreenGroup” affiliates.

“Žalvaris” intends to acquire 100% of the shares in “Granulita”. The parties agreed not to disclose the transaction value and other details.

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UAB Žalvaris:

“Žalvaris” is one of Lithuania’s largest and long-established automotive and industrial waste management companies and the leader of this sector in the Baltic States. The company owns ten waste collection and management branches and serves over 4,000 customers throughout Lithuania. “Žalvaris” employs 150 people, including 60 specialists in various fields and 11 employees providing environmental documentation, auditing, waste accounting and consulting services.

UAB Granulita:

“Granulita” has been active in the green energy sector for over 15 years, producing wood pellets used as biofuel in urban boiler houses, private households and thermal power plants. The company annually supplies around 100,000 tonnes of top-quality products to European Union consumers. It operates from two production bases in Anykščiai and Vainiūnai, with a turnover of over EUR 30 million in 2022. “Granulita” currently employs over 70 people.

„GreenGroup“:

“GreenGroup“ is a leading regional integrated recycling group and circular economy enabler with over 20 years of activity. “GreenGroup” is a leading European market player in PET recycling and production of r-PET and polyester staple fibre and a key player in polyolefin recycling, electronics recycling, glass waste recycling and industrial waste management. In Lithuania, the “GreenGroup” companies include the waste management company “Žalvaris” and two plastic waste recycling companies: “Ecso” and “GreenTech Baltic”.