The board of ITAB Shop Concept has just approved the decision to expand ITAB Novena in Kaunas, and also decided to relocate some production operations from other plants the group runs to the new factory in Kaunas.

ITAB Novena currently manufactures shelving units, wire products and custom-made fittings, along with assembling rack systems, in its current 4,000-m² production facilities. The firm also owns 2,000 m² of warehousing facilities in Kaunas.

According to the approved development plan, a 10,000-m² building will be constructed next to the current factory. The new facility will be used to produce racks of rolled metal. Furthermore, a production line for shelves will be relocated from the group's factory in Sweden to the new plant in Kaunas.

The Swedish branch is focusing on the production of cash-register desks, so relocating the shelving production line to the Kaunas branch will enhance production capacity.

"It is the market, the growing trade sector, that dictates the need to develop," said Raimondas Katkevičius, general manager of ITAB Novena. "Since we have some available space owned by the company, we are seeking to use it as efficiently as possible. We will concentrate the production of shelves in a single location and will start not only assembling, but also producing, racks of rolled metal."

According to Mr Katkevičius, the construction time of the new facility will not exceed a year, and is expected to be less. ITAB Novena currently employs 300 technicians, and several dozen more will be recruited as part of the expansion project.

The new facilities will be part of ITAB Novena's sustained investment in its Kaunas operations. In response to increased demand, it has recently invested 4 million LTL in a new automated production line that cuts different pieces from steel sheets.

In view of the recovery in the trade sector at the moment, the Swedish company expects its Kaunas facilities to finish the year with a 30 % increase in revenue, which would mean a return to the level recorded in 2012 (LTL 31 million).

According to Mr Katkevičius, a major factor positively affecting performance indicators is the recovery in the domestic and foreign commercial sectors. ITAB Novena sells most of its shop fittings (about 65 %) in the local market and exports the rest to Europe, Russia, and Belarus.

"The Rimi trade network has been especially active in development this year in the Baltic States, and is a customer for our shop fixtures and fittings. Our sales of custom-made equipment to German traders have also far exceeded average levels," the manager of ITAB Novena said.

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