Siauliu Stumbras change plans
6 February 2002
Leather processors Siauliu Stumbras have changed their investment plans and postponed production development amid tensions following the US terrorist attacks. The company's operations had already been impaired by livestock diseases that have affected the European leather industry, investing just Litas2 million (US$500,125) this year instead of the planned Litas5 million (US$1.25 million). Jonas Adomavicius, managing director, said the company's investment plans have been altered by the events that have shattered the global leather industry: the turmoil caused by livestock diseases spreading across Europe earlier this year; the prices of raw materials jumping by 50%; and the backlash of the September 11 terrorist attacks in the United States. The company's turnover this year should reach Litas70-75 million (US$17.5-18.75 million) instead of the anticipated Litas100 million (US$25 million). The company are projecting a net profit of Litas1 million (US$250,063). In 2000, Siauliu Stumbras reported turnover of Litas63.7 million (US$15.93) and a net profit of Litas2 million (US$500,125).
