Klaipeda-based company Lavango Engineering LT, which manufactures food industry equipment for international markets, calculates that the sales revenue of the first quarter of this year is almost equal to the sales of all of last year. The amount of transactions realized at the beginning of the year reaches 86 percent. the value of all transactions in the previous year.
The company said the food industry’s need to rapidly modernize, optimize production and reduce the risks associated with staff shortages was the biggest impact.
Following the turmoil in the market, the Lavango Group of Companies, which owns Lavango Engineering LT, announced that it will double its production capacity in the first quarter. The group is expanding production facilities in Klaipeda.
“It should not be mistaken to think that such growth is fixed because it has experienced a recession in the past. These results are truly impressive, not only compared to last year, but also to previous years. Sales in the first quarter of this year 180 percent. higher than last year and 140 percent. better than the results of 2019 “, – the report quotes Yevgeny Sakovsky, the head of Lavango Engineering LT.
According to him, the rapid robotization and automation of food companies has been observed for several years, and the pandemic was an even greater boost.
“Food companies are currently solving two puzzles: firstly, production efficiency, and secondly, the minimization of human risks. The latter, by the way, has become more important than ever before with the news of virus outbreaks in factories, ”says the head of the company.
He also notes that the need for modernization has changed recently – factories are looking for system solutions, so the need to upgrade only a single device is less and less heard. Mr Sakovsky speculates that this is not only due to the need to optimize production, but also to the stable economic situation of the sector, which makes it seem that investments in major modernization of production lines are being made at the right time.
“In response to new global challenges, the food industry market is transforming itself – seeking more automation, optimization solutions to increase productivity and reduce dependence on people’s workforce,” says Sakovsky.
It is estimated that automation in the food industry allows up to 60 percent. to reduce the number of employees in production and robotization to 90%.
Mr. Sakovsky says that now in this market there are the most opportunities for those equipment manufacturers who are able to develop complex, individualized full production cycle solutions.
The majority – 90 percent. – Lavango, which exports goods and services to twenty markets in Europe and Asia, is entering new markets in France and Germany this year and says that it does not rule out the possibility of supplementing its list of export countries already during the summer.
“We are feeling the turmoil in Europe from the abundance of inquiries from new markets. We see that during a pandemic, it is easier to reach market players with whom it used to be very difficult to make contact remotely, and we are now seeing an accelerated response time. In addition, we are seeing a trend for European equipment manufacturers to increasingly turn to European suppliers. This is partly due to a lack of service, disrupted delivery times for components from China, with which many manufacturers have cooperated. Now, European producers prefer to talk to their neighbors, “notes Sakovsky.
At the beginning of the year, 30 percent. Lavango, which forecasts growth in 2021, says that the results of the first quarter of this year suggest that sales will grow occasionally this year.
The Lavango Group of Companies, consisting of Lavango Engineering LT, Lavango Engineering BY (Belarus) and Lavango Ehf (Iceland), has been manufacturing conveyors, screw systems, lifting mechanisms, robotic packaging, refrigeration and refrigeration equipment for more than 14 years. heat treatment plants and other equipment for the food industry. The Lithuanian capital company, which has two production units in Europe, supplies its solutions to twenty markets in Europe and Asia. Exports account for 90%. turnover. The company’s customers include international corporations such as Unilever, Mars, the world’s largest producer of surimi products, Viciunai Group, and many others. Lavango currently has over 80 employees.