State Investment Management Agency grants funding to Utenos Trikotažas
SBA Group company Utenos Trikotažas and the State Investment Management Agency (VIVA), which manages the Business Assistance Fund, have signed a financing agreement worth EUR 2.8 million. The fund will purchase the company’s bonds for EUR 2.3 million and will provide another EUR 500 thousand in the form of a loan. The financing is for a period of 6 years.
“Recently, we have experienced positive changes in the textile export markets – contract manufacturing is growing, and Utenos Trikotažas is working at full capacity. However, like most industrial sectors we are challenged by the effect of the cost of raw materials, labour and energy costs on our performance. The ongoing global pandemic inevitably has its effects too. The agreement with VIVA will help ensure the sustainable development and expansion of the company.”Petras Jašinskas, head of Utenos Trikotažas.
“The financing will allow us to balance the company’s financial flows in a short period of time and continue investments in a planned and uninterrupted manner, and it will ensure greater stability in planning future development prospects. The financing has been granted for a period of 6 years, but the company will have the opportunity to repay the borrowed funds earlier,” said Dainius Vilčinskas, director-general of VIVA.
According to Mr Jašinskas, the next strategic step is to rebalance the assortment of both fabrics and production Utenos Trikotažas is offering to the market, focusing exclusively on innovative complex products of higher added value. To achieve this, the company’s functions have been reorganised with development and innovation-oriented teams focused on efficient work.
“Our competitive advantage is our strong track record in global textile innovation, and we are committed to growing our technology and innovation department and its competencies, expanding our team and strengthen our leadership in the production of exclusive textiles. This requires maximum focus and speed, which the funding will help us regain,” adds Mr Jašinskas.
In the first 9 months of 2021, Utenos Trikotažas sold orders and provided services valued at 19.9 million euros, which is 8.4 % more than during the same period in 2020, when the company’s sales amounted to 18.3 million euros.