Best in Lithuania #10

LIETUVOS PRAMONININKØ KONFEDERACIJA

LITHUANIAN CONFEDERATION OF INDUSTRIALISTS

Nr. 2 (10) 2010

MAGAZINE ABOUT BUSINESS, SCIENCE AND CULTURE LEADERS IN LITHUANIA

WE ARE PROUD OF HISTORY OF OUR STATE! w w w. B E S T i n LT. l t

TRAKAI

Dear Readers, In this issue of the magazine, relations with neighbouring Poland are discussed upon and its leitmotif is the 600-year anniversary of the Battle of Grunwald /Þalgiris/. This important historic event when united armies of Lithuania and Poland defeated Teutonic Order near Grunwald reminds about the extraordinary partnership of two nations in that period. Is it possible in the spheres of economy, culture and politics today?

It seems that the world-shaking aircraft crash that caused perishing of the flower of Polish nation answered this question.

Lithuanian nation grieved for this catastrophe as well. We felt our historic and spiritual proximity with the Poles as never before. So, the status of Poland as a strategic partner is not a declaration only. Our nations are real partners, although not always it can be proved by achievements of the economy or specific quantitative indicators.

According to export of products and services to Poland, Lithuania is the 4-th and according to volumes of import from this state, it is the 3-rd (in the quarter I of the current year).

Pharmaceutical companies won stronger position in Poland, as compared to other enterprises of large branches of national economy. Total about 300 small and medium-size business enterprises of Lithuanian capital operate in this neighbouring country. In Lithuania, the Poles control „Orlen Lietuva“, the largest oil refinery of the region. The ambitions of both countries are similar as well. One of them is a radical reorganiza-

tion of the energy sector, formation of power links independent on Russian energy sector and building nuclear power plants.

Lithuania and Poland are literally connected by roads. In these latter years, the projects „Rail Baltica“ and „Via Baltica“ (very important for both states) are often discussed upon.

Implementing the project on the railways has been started already; and we hope the project on the speedway will be completed soon. They will strengthen economic and personal cooperation of the nations.

Exchange with the experience would be really useful. Poland was the only EU Member State that could maintain growing of the Gross Domestic Product in the period of economic recession. In the first quarter of the current year, its economic grow achieved 2.7 percent, in the year 2009 – 1.7 percent. For the next year, the economic grow of 3.3 percent is forecasted. Experts mention a number of causes of the success, such as the strong business with its long-year traditions, the stable financial sector, increase of exports, foreign investments, abundant injections of EU funds, and wise (although non-popular) decisions of the Government.

So, turn attention to macroeconomic data and the histories of the collocutors on really stupendous results of their activities both in Poland and Lithuania provided in the publication.

Hereby we wish you pleasant reading!

Sincerely, The Editorial Staff of „Best in Lithuania“

WAWEL

CONTENT 8

THE ENGINE OF EXPORT IS CRANKED UP

BY TALENTED PERSONS Interview with GINTARAS MORKIS, the Deputy Director General of Lithuanian Confederation of Industrialists

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A. KUBILIUS: TODAY WE ARE MUCH CLOSER TO EACH OTHER THAN WE WERE AT GRUNWALD Interview with Lithuanian Prime Minister Mr. ANDRIUS KUBILIUS

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LITHUANIA AND POLAND. STRATEGIC PARTNERSHIP Interview with EGIDIJUS MEILÛNAS, the Ambassador Extraordinary and Plenipotentiary of Republic of Lithuania in Republic of Poland

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THE IDEALS OF COMPREHENSION AND DILIGENCE MUST BE PROLONGED Interview with MR. JANUSZ SKOLIMOWSKI, Poland Ambassador in Lithuania

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POLISH CHAMBER OF COMMERCE Interview with Mr. Mr. ANDRZEJ ARENDARSKI, The President of Polish Chamber of Commerce

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PZU GROUP: AN ACTIVE PLAYER IN THE LITHUANIAN MARKET

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THE SUCCESSFUL INTERNATIONAL PILOT PROJECT WAS IMPLEMENTED IN LITHUANIA UAB “Tele-Fonika Baltic”

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AVIVA LITHUANIA – STRONG POSITIONS IN THE LIFE INSURANCE AND PENSION FUNDS MARKET

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TOI TOI - NO.1 IN LITHUANIA AND WORLDWIDELY! UAB “TOI TOI sanitarinës sistemos”

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POLISH BUSINESS PHILOSOPHY SUCCESSFULLY APPLIED IN LITHUANIA IT company “The Baltic Computer Center”

CONTENT VILNIUS DISTRICT – A PEARL ON THE MAP OF LITHUANIA

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EACH NEW ACQUAINTANCE WITH A CLIENT INCREASES THE DEMAND UAB “Skuba”

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UAB “GARGÞDØ GARGÞDØ MIDA MIDA” - THE ONLY BITUMEN TILES PRODUCERS IN THE BALTIC COUNTRIES

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THE ENTRY OF “MINERALINIAI VANDENYS” TO POLAND STARTED WITH “STUMBRAS STUMBRAS” BEVERAGES UAB “Mineraliniai Vandenys”

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LITHUANIAN LINEN – FOR EUROPEAN SAUNA UAB “A grupë”

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UAB “PLASTIC FORMO” IMPROVES ITS RESULTS IN THE CLOSEST MARKETS

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AD REM. THINK GLOBALLY - ACT LOCALLY UAB “Ad Rem”

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SNAIGË Refrigerator manufacturer

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HIGHWAY, RAILWAY, SEAWAY, AIRWAY Interview with ELIGIJUS MASIULIS, Minister of Transport and Communications of the Respublic of Lithuania

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CONTENT 66

THE EUROPEAN RAILWAY TRACK – THE INTEREST OF THE NATIONAL SCALE Project “Rail Baltica”

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HONORARY CONSULS: ADVOCATES OF LITHUANIA’S INTERESTS IN THE WORLD Interview with ÐARÛNAS ADOMAVIÈIUS, Lithuania’s Vice-Minister for Foreign Affairs

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LITHUANIA’S DEFENCE: FROM SWORD TO MISSILE

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LITHUANIAN UNIVERSITY OF AGRICULTURE AN EXCLUSIVE NATIONAL HIGHER SCHOOL Lithuanian University of Agriculture

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STEADILY GROWING EXPORTS OF KG GROUP CONSISTING AB KAUNO GRÛDAI, AB VILNIUS AND KAIÐIADORYS POULTRY FARMS

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HIGH QUALITY AND CONFIDENCE – THE KEY GUIDES OF THE ACTIVITIES UAB “Smulkus urmas”

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“STAR1 AIRLINES” BRINGS REVIVAL TO THE LITHUANIAN AVIATION MARKET

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CENTRO KUBAS - NEKILNOJAMASIS TURTAS

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THE DECISIVE STEPS OF UAB “PRINTELA” PRINTELA PRINTELA” HELP IT TO PRESERVE THE LEADER‘S POSITION

Þurnalas / Magazine „Best in Lithuania“ Nr. 2 (10) 2010 m.

Redakcijos adresas / Address: UAB „Mata Hari“ P.d. 272, LT-03102 Vilnius. Tel. +370 615 83361 E-mail: rimvidas@matahari.lt www.BESTinLT.lt LT LT.lt

Vyr. redaktorius Reklamos projektø koordinatorë Þurnalistai: Dizainerë Fotografas:

Rimvidas Stankevièius Stasë Overaitë Vytautë Merkytë, Viktorija Balsevièiûtë Lina Ðiðkutë Gediminas Miðkinis

CONTENT IONIZED WATER UAB “Burbuliukas”

DRUSKININKØ RASA

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BGS

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THE MOST IMPORTANT REWARD IS A REPEATED VISIT OF A CLIENT...

UAB “Sostinës baldai”

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WELLNESS SPRINGS RESORT Medical SPA “Eglës” sanatorija

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VILA DIEMEDIS

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THE MODERN WORLD HERBALIST OFFERS TO FIND LIFE IN SEEDS

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THE “VILNOJA”. ART, NATURE, CALMNESS

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UNDERSTAND THE LANGUAGE OF WOOD Wood master ALGIMANTAS MIKALAUSKAS

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THE CERAMICISTS PUT NEW CROCKERY TO THE TEST AT THEIR OWN KITCHEN Ceramics Jurgis and Brigita Firsuni

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MARIUS MINDAUGAS DANYS

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Virðelyje: Lietuvos paðtas iðleido paðto þenklà, skirtà Þalgirio mûðio 600 metø sukakèiai paminëti Cover: Lithuanian Post has issued a stamp to make a mention of the 100-year anniversary of the Battle of Grunwald Redakcija uþ reklamos turiná neatsako The editorial office is not responsible for the contens of advertisements

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THE ENGINE OF EXPORT IS CRANKED UP

BY TALENTED PERSONS Export of Lithuanian products is predetermined by the environment favorable for business and talented persons. Our manufacturers should use their good familiarity in neighbouring East markets; however, we should look for niches both in the huge market of Western Europe and poorly known markets,” Gintaras Morkis, the Deputy Director General of Lithuanian Confederation of Industrialists, told to “Best in Lithuania”.

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BiL How national exporters would change their strategies in the post-crisis period?

In my opinion, the post-crisis period has not come yet. Our state lives in the period of the crisis. So, speaking about the behaviour upon more favourable conditions is untimely.

At present, the strategic directions of a majority of Lithuanian enterprises remain the same: they include Western Europe, Russia, Belarus, Kazakhstan, and Scandinavian States. Of course, in the said markets, on the one hand, the positions affected by the crisis should be restored, and, on the other hand, new opportunities should be disclosed. It is known that the crisis forced to pay more attention to other states, such as USA, China, Azerbaijan, Turkmenia, some African and Asian states. I think their markets are perspective as well.

BiL Can we state that the “night� tax reforms considerably aggravated the situation of Lithuanian exporters as compared to other countries (our competitors)?

The increased taxes unambiguously aggravated the situation of exporters. Both in the export and the national market the situation became extraordinarily complicated. The increased taxes are the result of the crisis. The crisis negatively impacted the whole national industry, including exporters. In my opinion, the policy of improving the state budget by increasing taxes was not correct and now it painfully impacts recovery of the national business and whole national economy.

A success of exporters depends on the level of their competitiveness in international markets. Our competitiveness is affected by a number of factors, such as the sizes of taxes, prices of energy, prices of qualified manpower and so on.

In no sector, we are unique to the extent that allows consolidation in foreign markets without competition. Abundant branches of industry, such as chemical industry, textile industry, machines and equipment, wood and furniture, food industry, production of pharmaceuticals and so on, and services, such as stevedoring, cargo transportation by roads and railways, shipbuilding and ship repairs, are confronted with huge competition. The quality is very important; however, the price often is the deciding factor. So, the increased taxes and higher prices of fuel and electric energy negatively impact the competitiveness.

A considerable damage was caused by the trips of Lithuanian consumers for shopping in Poland, although they seemed to be a

matter of indifference. So, our manufacturers suffered because of the fall of zloty and increased taxes in Lithuania. At present, the problems include high prices of oil products, growing smuggling and illegal commerce.

BiL What actions, in your opinion, will be taken by exporters after the crisis?

Lithuania is a small state, so it should have export-oriented economy. And export always will remain the deciding factor of economic grow. The crisis showed our businessmen to be stirring: they search for new opportunities and markets. As I mentioned earlier, when the demand in our traditional markets, such as German and Russian, decreased, we looked for markets in Africa, Asia, developing countries, and growing economies.

However, the life reality showed that the maximum purchasing power is concentrated close to us – in Western Europe. Although the market of USA is large, selling for dollars is less profitable. However, if US dollar becomes stronger, export to USA will be recovered as well. Selling for euros is much more beneficial, as compared to dollars. Regarding Arabian states, we hardly access to them, because rich persons look for well-known brands and take into account the repute of the state. The name of Lithuania impresses consumers from Eastern Europe to a certain extent. Our products are not brilliant brands, so penetration onto a market of fastidious consumers is difficult task for us. However, the talents and diligence of businessmen surmount the obstacles.

BiL Lithuanian business more and more often looks towards neighbouring Belarus. Is it the country of unused opportunities for our exporters?

We are well-known there and this circumstance should be used. The name of our country as well as our enterprises are well-known to the population and our products enjoy a great demand there. Russia, Belarus, Kazakhstan and other countries eastwards from Lithuania are the countries where the name of our country is known and where our products and services are highly appreciated. Up to present time, Russia was our principal export and import partner; it remains the same upon the crisis as well. Belarus is important in the aspect of transit. Cargoes transported from Belarus via Lithuania are a source of income for railway and road transport business as well as for stevedoring companies. Lithuania needs very much transit cargoes from Belarus. The cooperation is mutually benefi|9

cial. The statistics show that indicators of transporting some cargoes via Lithuania grow rapidly and provide optimism.

BiL Should Lithuanian exporters continue fighting to their position in the market of fastidious Western Europe?

Beyond any doubt. Germany is the largest European market and exports of our products form a considerable part of it. The purchasing power is very high in Western Europe. In addition to abundant buyers, Western Europe provides to exporters new experience and the quality standards that force them to care about self-improvement. We can find no better than this huge market close to us that is a mutual customs-free market free. So, we should implore the God for recovery of this market as soon as possible. Our achievements in the export sector will depend on its success as well.

BiL May Poland, our other neighbour, be an important export partner?

Poland is an important export and import partner of Lithuania. This market with population of almost 40 million is close to us. However, it is pity that no sufficiently tangible sector finds its niche in Poland.

In the meanwhile, imports from this country considerably exceed exports. And it is natural.

However, according to investments, Poland is the second after Denmark. Both in Lithuania and Poland, economic diplomacy does its best for implementing these goals.

BiL What actions should be taken by the authorities for providing for favorable conditions for our exporters?

The potential of some sectors in exports should be assessed more carefully. It is also bound with the support from EU for introducing recent technologies that enables to improve the quality and to tackle new markets.

Many enterprises were provided a support from the Structural Funds and thus strengthened their export potential. However, a large number of enterprises are not provided such support yet. These funds are frozen. They are included in the reserved list.

Measures of some narrower scale include participation in international exhibitions of the branch and support to missions. Support to exhibitions in Lithuania is of a great importance as well. We wish to present out production to foreigners here, in Lithuania, i.e to invite them and to show our best products.

As I have mentioned earlier, economic diplomacy is a very important tool.

Maintenance of economic diplomacy is very important, if we strive to help to Lithuanian exporters. It is pity that the branch of economic diplomacy suffered considerably in the period of the crisis. In a majority of embassies, there are no diplomatic service economists now. However, their activities would be very important for successful searching for contacts in foreign markets.

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Fortunately, the network of commercial attachĂŠs remained; it should be further extended and strengthened.

Our survey showed highly restrained attitude of enterprises, in particular, large and medium-size ones, towards the assistance from the side of commercial attachĂŠs; some of them know nothing about such persons. Nevertheless, their activities and their contributions are very important. There are abundant examples of assistance to enterprises in successful tackling new markets from the side of commercial attachĂŠs.

BiL Sometimes, the national authorities are criticized for the absence of industry branches of priority to be supported in the sector of export. May be Lithuania is too small for singling out some manufacturers?

The Export Strategy for 2009-2013 approved by the Government provides the directions of the activities and the sectors to be promoted and supported. The Strategy was developed in cooperation with associated business structures and after consulting with enterprises.

Of course, the Strategy is not ideal; however, the attempts should be appreciated. Taking into account that the Strategy can be altered dependently on the real processes, everything seems to be quite normal.

We do not assent to some aspects of export supporting. In our opinion, opportunities provided by Scandinavian States are not completely used. The population of the said states is an important consumer; however, it requires high quality. So, a higher level of promotion and support is required in this segment.

A strategic attitude towards economic development seems to require establishing the strategic sectors and providing support to them. It is said that observance of the processes having passed, for example, in Scandinavia would be useful. There, some sectors disappeared and some new sectors appeared. However, it should not be forgot that the pattern of life is not the same in different states. Each state distinguishes itself for the own nuances.

For example, textile industry did not answer the purpose in some European countries and the production was transferred to the East; however, some Lithuanian enterprises have very strong positions in export markets, successfully sell their products in European countries and compete with manufacturers from China and India. Our textile manufacturers distinguish themselves for high quality of the products and flexibility. These properties often are the decisive factors in choosing business partners in Western Europe. In addition, we are closer; besides, a similarity of mentalities sometimes is a decisive factor, too. Of course, the effect of globalization is felt worldwidely and sometimes distances are not a matter of importance anymore.

So, I do not think that the strategies fixed on a paper should be provided a prominence and some branches of industry should be singled out by supporting export of their products because of their imaginable

goof perspectives in any market.

Some facts deny such imaginable processes. For example, nobody could suppose 10 years ago “Vièiûnø grupë” to become World leader of producing fish products of surimi. The enterprise employs thousands of persons and its products are being sold worldwidely. In addition to development of its activities in Lithuania, it exports its products to the West as well.

Whether it can be stated that food industry is not a perspective importer in Lithuania? Few persons know about producing dummies and other shop equipment in Lithuania. However, Lithuanian enterprise UAB IDW involved in these activities is well-known to foreign enterprises using such equipment. Whether it can be stated that ship building and repairs are not perspective?

Although some European countries transferred ship building and repairs to countries of Southeastern Asia, Lithuanian company AB Vakarø laivø gamykla enjoys its good economic stance. So, whether this sector can be defined as a non-perspective one in the strategic aspect not worth of attention?

BiL What perspective of Lithuanian export do you envisage?

-In my opinion, everything depends on personalities and the favorable business environment. If a talented businessman develops a whole sector and makes it competitive in the expert market in spite of other prognoses of the strategy, it should be highly appreciated and promoted. If the business environment is favorable, creative persons sometimes achieving unexpected results will appear. So, a success of export of Lithuanian products will be ensured, if a favorable business environment is formed and talented businessmen can realize their potential in the said environment. We expect that establishing of public institution „Eksportuojanti Lietuva“ and its activities will provide some assistance to Lithuanian enterprises; in addition, we expect that the  AB LIETUVOS GELEÞINKELIAI activities of representatives of economic diplomacy and the commercial attachés  Group of companies will be optimized and strengthened and the KG Group business environment will be improved to the extent controllable by decisions of the  AB WESTERN SHIPYARD state authorities.

BiL Lithuanian Confederation of Industrialists arranges the nomination “Lithuanian Exporter of the Year” for many years.

What national enterprises were laureates this year?

As usually, enterprises were divided to the categories of small, medium-size and large ones. They were assessed according to a number of criteria. Following national enterprises were the winners of the nomination “Lithuanian Exporter 2009“ this year:

 UAB PLUNGËS KOOPERATINË PREKYBA  UAB ÐVYTURYS-UTENOS ALUS  UAB IDW METAWOOD  UAB VIÈIÛNAI IR PARTNERIAI  UAB NORVELITA  STEVEDORING COMPANY BEGA

 AB KLAIPËDOS NAFTA  UAB TRIVILITA  UAB SICOR BIOTECH  UAB ORION GLOBAL  UAB TRAIDENIS  UAB JÛRËS MEDIS  UAB VAE LEGETECHA  UAB SWETRAK  UAB PACK KLAIPËDA  UAB TELESOFTAS  UAB DASTRA

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A. Kubilius: today we are much closer to each other than we were at Grunwald Single Poland between European Union countries achieved a growth of economy. A success in avoiding the most painful effects was based on undoubtedly a firm and consist conduct of the Polish government, who deterred the panic on financial market and in appropriate time took the sequence of remedial measures. Lithuanian government also was capable to control economical decline. Collaboration between both countries is very important in economical, cultural, historical fields, also as a good possibility to exchange a good practice. What is the future point of view according the Poland we are talking with Lithuanian Prime Minister Mr. ANDRIUS KUBILIUS. Bil In the context of the 600-th anniversary of the Battle of Grunwald, when the joint Lithuanian-Polish army defeated the Teutonic Order, would you please describe current LithuanianPolish relations. Have we retained the unity that we enjoyed at Grunwald?

As a matter of fact, today we are much closer to each other than we were at Grunwald, because both countries are members of the European Union, which also includes Germany, a historical heir of the defeated, so to speak, side of the Grunwald battle. Thus, the Polish-Lithuanian solidarity is not based on the need to unite against something or somebody, but for something – for creating a prosperous family of the European states. We are united through common European values and free EU internal borders facilitated by the Schengen. Finally, we are united by a common endeavour of the European Union and NATO to build a long-term security.

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Bil Why do you think Poland has succeeded to achieve 1.7 percent GDP growth during the times of the global recession having shaken the rest of the EU, Lithuania in particular? Is there anything to learn from the neighbours?

First of all, there is a different degree of openness of the markets, as Polish exports account but for 40 percent GDP, while ours make 60 percent. Though Polish exports shrank by similar percent, this factor, however, had less impact on the Poland’s economy.

Another reason is that Poland entered the crisis without major internal and external imbalances, such as enormous housing bubble, lack of accrued reserve of financial resources and so on. Polish consumers in a way supported the domestic consumption. Inflation, which could have hit the consumption, had no significant effect on the account of the depreciated zloty. What is also important to my mind is the fact that Poland’s Central

Designer: Aidas Urbelis

What is also important in this respect is the fact that the “Rail Baltica” will enable Lithuania to join the European rail freight market. So far we have been cut off from Europe due to our different track gauge; therefore our business is basically directed towards Eastern regions. But now the time has come for us to explore the possibilities offered in the European markets. After all, we happen to be a perfect link between East and West, therefore we need to use transit and logistics opportunities.

I am pleased to tell you that this year we have included the project “Rail Baltica” in the list of projects of state significance, which has enabled us to embark on actual physical works. I trust that this will help move the “Rail Baltica” from words to deeds.

Bil On her visit to Poland, President of the Republic of Lithuania Dalia Grybauskaitë noted that Lithuania and Poland have similar interests in the European Union: Lithuania is ready to continue the process of energy independence and determination to remain a nuclear state. Is the Polish partnership still possible today as regards the new nuclear power plant project in Lithuania, and how things are going in terms of pooling forces for the common power bridge project?

Bank lowered the official interest rate, while here, because of the lack of confidence in the fixed exchange rate, litas interest rates rocketed. Furthermore, lending in Poland continued to grow, while here it was just the opposite.

Each country has its own scenario for dealing with the crisis, and it is tailored to local conditions and specific circumstances.

Of course, there are universal commonalities. What we could learn from our neighbours is a sustainable fiscal policy.

Bil Lithuania has been related with its large neighbour Poland through cultural, historical and economic ties. In fact, issues of most mutual importance today relate to economy and infrastructure, like the “Rail Baltica” for instance; for Poles, issues of ethnic minorities, particularly in the Vilnius region, are also of great concern. As to the issues of infrastructure, it is notable that neither Lithuania nor Poland have had regular passenger rail service to Latvia, Estonia or Finland. This should be achieved through the “Rail Baltica “, which would link Poland with Finland via the three Baltic countries. What are we now with the “Rail Baltica”?

The “Rail Baltica” provides a potential possibility of reaching European centres of culture, business and tourism by modern railway. As regards this mode of transportation, Lithuania feels isolated from Europe, irrespective of the fact that for two decades we have been part of the family of independent European states, and for six years we have been full-fledged members of the EU. The need for a modern railway line has become particularly acute these days when aviation has got paralysed. Railway is the safest and most environmentally-friendly transport in terms of extended distances, making a good alternative to the carriage of passengers by air.

No doubts, Poland is a real partner as regards the new nuclear power plant project in Lithuania. Poland has already approved a modification to the nuclear power plant model as proposed by Lithuania, which provides for a strategic investor to be selected first (he will also act as the builder), followed by regional partners.

The Polish-Lithuanian power bridge has been included in the Baltic Interconnection Plan BEMIP, approved by the Nordic heads of state and supported by the EU, so it is no longer a matter of two countries. Besides, a joint Lithuanian - Polish company “LitPollink“ was set up to carry out all the necessary preparatory work for the project as well as ensure adequate funding. Poland intends to provide its share from the EU Structural Funds.

Bil The import of Polish products to Lithuania is by far bigger than the Lithuanian export to Poland. What, in your opinion, might encourage the Lithuanian business community to better penetrate in this market?

It is no wonder that imports from Poland are ahead of the Lithuanian exports to this country. Considering the sheer size of the domestic market of Poland, it is a China of Europe as it were. Its production volume and the economy of scale make it very difficult to compete in terms of costs. Moreover, in the wake of the crisis, the weak zloty strongly influenced trade flows in adversity to our industries. (As you know, currency fluctuations in Lithuania are not possible).

As regards our export hopes, we basically focus on the following: innovative niche products that could find their place in the large Polish market due to their exclusivity and quality; joint clusters with Polish companies; service export development, considering geographical proximity: construction, transport services, inbound tourism, etc. We are hopeful, that the export package currently being implemented by the public company “EL” (Exporting Lithuania) and the LVPA (Lithuanian Business Support Agency) will provide a positive impetus in this regard.

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LITHUANIA and

POLAND.

Strategic partnership EGIDIJUS MEILÛNAS, the Ambassador Extraordinary and Plenipotentiary of Republic of Lithuania in Republic of Poland

BiL With Poland, its great neighbour, Lithuania is bound by cultural, historical and economic links. This year, we commemorate the 600-year anniversary of Battle of Grunwald /Þalgiris/. What can you say about the today relations between Lithuania and Poland? Do we feel sentiments for the joint history and the spiritual kinship or the people? What joint events for commemoration of the important date are planned?

Let me start by stressing the fact that today Lithuania and Poland are the strategic partners. This strategic partnership is a good illustration of the level of cooperation between the two states.

This is an extraordinary achievement if consider the painful and difficult interwar history of the bilateral relationship between Poland and Lithuania. However, both states managed to overcome historical past and establish excellent relationship.

It is not a secret that some of our common history facts were seen and evaluated differently. Due to that, we have witnessed a lot of unnecessary emotions from both sides. Nevertheless, I

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can present different examples in that area. Thus, the Constitution of 3rd May adopted in the year 1791 just quite recently was viewed in the negative light in Lithuania. Whereas the Lithuanian side used to stress that this Constitution was not favourable to the Grand Duchy of Lithuania, the Polish side has focused the main attention to the Kingdom of Poland role in preparing the Constitution. However, according to well-known professor Alfredas Bumblauskas the Second Act of the Commonwealth of Both Nations of 20 of October of the same year which is integral part of the Constitution „taken from oblivion” has put everything in order. The rights of the Grand Duchy of Lithuania have been re-established by that document. We have to be proud that our ancestors have been authors of the first written Constitution in Europe and the second one in the world. I am very delighted that May 3rd and October 20th are proclaimed as the memorable days in the Republic of Lithuania.

This year, we will celebrate the 600 anniversary of Grunwald battle where joint Lithuanian and Polish forces achieved victory.

Photo: Dþoja Gunda Barysaitë President of Lithuania D. Grybauskaitë and President of Poland L.Kaczynski in Warsaw on 28 August 2009

One can name this victory as the largest demonstration of solidarity in Europe at that time. In order to commemorate that date, Lithuania and Poland have arranged a great number of events.

The main celebration will take place on July 17 at Grunwald.

Jointly prepared Lithuanian-Polish re-enactment of the battle will be performed on that day in Gruwald.

BiL Why, in your opinion, the volumes of import of Polish production to Lithuania exceed considerably the volumes of export of our production to Poland? According to the data from the Department of Statistics, export of production to Poland in the year 2009 amounted to almost 3 billion Litas and the imported production amounted to almost 4.5 billion Litas?

export to Poland. I am delighted that in the year 2009 the statistics comparing to the year 2008 has changed only slightly. This is a very good achievement because that year has been quite difficult for the Lithuanian exporters and producers. Such a statistics demonstrates the stability of trade relations.

BiL What Lithuanian business predominates in Poland among other kinds of business? Who are more abundant: representatives of small & medium-size business or representatives of large business? Can you specify the number of enterprises of Lithuanian capital in this neighbouring state?

Most probably I will not be mistaken by saying that the main investor is the industry of pharmacy. Up to now, the biggest investor is enterprise Jelfa which is the investment of Sanitas. However,

Photos: from the archives Embassy of Lithuania in Poland

In order to compare let me say that in the year 2008 the export was 3.2 billion and import - 7.3 billion litas.

Thus, the balance is better last year. However, the market of Poland is big one and this factor stimulates production and reduces the costs of productions. In order to enter the market of Poland, the serious preparations, evaluations and strategy are needed. In addition, the devaluation of national currency zloty also positively influenced the growth of export 2009. According to the market experts this fact is called “luck in the unluckiness” for the exporters. Thus, let me present the examples of the producers of the agricultural products in Poland. According to the Central Office of Statistics of Poland, the Polish producers in the year 2009 have exported one fifth more that in the year 2008. These payments were based on zloty. However, according to the payments in EURO, this export shows different picture – the fall of 2.2 percent.

Lithuania imports from Poland not only consumption goods but also the raw materials.

The ceremony of conferring a title of honorary doctor Lithuania occupies the 20th place according the of Gdansk University to Tomas Venclova on 20 March 2010

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Photos: from the archives Embassy of Lithuania in Poland Presentation of Lithuanian production at Warsaw trading network „Geant“

the most popular are small and medium enterprises in the areas of food industry, timber industry, commerce. The Lithuanian enterprises have firmly established themselves in the road building area. Though, the Office of statistics does not have the exact numbers, we do believe that around 300 enterprises with the Lithuanian capital are acting in the Polish market.

BiL What niche of business, in your opinion, Lithuanian businessmen can pretend to?

The Polish market is a big one. However, at the same time it faces a lot of challenges. A big number of transport infrastructure projects are being implemented. There is a concrete goal, which is the football championship EURO2012. Poland needs to prepare highways, railways, stadiums to meet the requirements of that event. In the year 2010, the big projects related to the construction of hotels has started in Poland. Just to mention the few of these projects in that area - Marriott Renaissance in Warsaw, Poznan and Wroclaw; chain of Boutique in Krakow, Orbis will invest in Novotel at Lodz. There are plans to start construction of Sheraton hotel in Masuria region. The investment in that field is more that 800 million zloty. Another sector of great importance is energy. Poland has ambitious plans to restructure the energy sector, to become a country of nuclear energy by building nuclear power plants. In order to achieve these goals, specialists, experience are badly needed. In the year 2010, Poland plans to privatise around 300 of enterprises. Some of them will be sold in the public auction; others will be sold in the stock exchange.

Thus, there are a lot of possibilities for the Lithuanian business as well.

I would like to encourage the Lithuanian enterprises acting in the areas of food processing and services to consider investment in Poland. Poland needs not only the certain Lithuanian products. Poland

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I would like to encourage the Lithuanian enterprises acting in the areas of food processing and services to consider investment in Poland. Poland needs not only the certain Lithuanian products. Poland needs to be reminded about these products.

needs to be reminded about these products.

BiL At present, Lithuania and Poland have no regular communication by passenger trains with Latvia, Estonia and Finland. This gap could be filled by „Rail Baltica“ connecting Poland with Finland via three Baltic States. How this European project is assessed in Poland? Are there any obstacles for its implementation? What can you say about the run of implementation of the other international project – „Via Baltica“?

The Polish Ministry of infrastructure and transport has informed about the projects related to the railways development. According to the Government’s Plan of year 2008, Poland has to become a Highspeed railways lines country. The working group deals with that issue. The main targets for building are the following: railway connections Warsaw-Lodz-Poznan-Wroclaw where the train speed is 350 km/h., and Warsaw-Katowice-Krakow where the speed is 200 km/h.

Such a distribution of the high-speed railway junctions would ensure the internal and external connections. The beginning of works is foreseen for year 2014 and the end of the project is foreseen at years 2019-2020. Starting from year 2030, there will be further developments of the project for the connections with the Czech Republic, Slovakia and Germany. Currently, the preparations works are being carried out. In the nearest future, there are plans to improve the railway speed up to 100 km/h in the number of areas of the Polish

regions. However, the investments for the Rail Baltica until the year 2013 are not confirmed yet. This will depend from the EU financing and support of the projects.

The works related to the „Via Baltica“ in Poland will start in 2012 m. First of all, they will be conducted for the building road next to the city Augustow. As you know, due to the number of reasons earlier project via the Rospuda valley has been suspended by the non-governmental organizations. The new road will be built in another place. The Polish directorate of Roads is of opinion that until the year 2018 up to the Lithuanian border the new two ways each direction road will be built.

Both projects are of great importance to Lithuania. I believe that the EU in the context of the Baltic Sea region development will support these projects.

BiL How the Government of Poland assesses a possibility of cooperation with Lithuania in construction of a new nuclear power plant? Is a perspective of joint electric links real yet?

I can assure you that experts are exchanging the information on the regular basis. Lithuania as a host country for the building the new nuclear power plant faces a lot of issues in order to achieve the stage implementation. Up to now all states that have expressed the support for the new building of the new nuclear power plant are keeping that position. All heads of the institutions of Poland involved in the field of energy – be it the Office of the President, Commission of the Economy of the Parliament, Office of the Prime Minister, Ministry of Economy – have confirmed that the participation of Poland in the building of the new nuclear power plant in Lithuania is a priority. At the same time, this is an opportunity to acquire practical knowledge in implementing the nuclear energy programme.

The electric power bridge project between Poland and Lithuania or in the concrete terms between the Lithuanian city Alytus and the Polish city Elk is in the stage of implementation. The common enterprise of Lietuvos Energija and Polish PSE Operator called LITPOLink is currently conducting the works. Both states – Poland and Lithuania – have confirmed that the bridge should be operational in

The inauguration of the project of Lithuanian - Polish Youth Exchange Fund in September 2009, Warsaw

the year 2015. There plenty of work to do in order to implement that goal – study of impact to the environment, the choice of the line, and preparations for the infrastructure in both states.

BiL Lithuanians are relatively well informed about Poland; however, the knowledge of the Poles about our state is modest. How mass media of Poland describes events in Lithuania and are tourist cognitive trips to Lithuania popular in Poland (and how they are popularized)?

I fully agree with you that societies of Poland and Lithuania still do not know about each other. There are many reasons for that.

However, the most important is that Poland and Lithuania have been in isolation from each other during the communist times. I am particularly glad that this is changing. Lithuania is getting more and more well-known in Poland. During the holidays, you can see a lot of tourists in Lithuania, especially in Vilnius, Druskininkai and the Lithuanian seaside.

The Polish mass media is giving a lot of objective coverage about Lithuania. However, occasionally, we are witnessing biased articles especially related to the issues of national minorities. As a result, the Embassy has to refer these cases to the editors in order to correct information about Lithuania. It seems to me that such a situation is related to the fact that currently the Polish mass media does not have its own correspondents in Lithuania. Though, there were 10 correspondents in Lithuania just 15 years ago. By the way, the same situation is in other side – there are no permanently based Lithuanian correspondents in Poland. One can assume that this is due to the fact that both Poland and Lithuania have joined EU and NATO. Thus, jokingly, of course, in terms of journalistic point of view countries have become less interesting to each other.

Overall the trend is very positive. Whereas 15 years ago around 50 articles per year used to appear in the Polish mass media about Lithuania; these days there are around 1000 of them each year.

The point of view of the Polish society is also changing. Whereas in year 1993 only 21 percent of Poles viewed Lithuanians positively, and 42 percent – negatively, today according to the polls 45 percent of the Polish society have positive attitude towards Lithuanians and only 15 percent – negatively.

The stand of Lithuanian economy in Krynica Forum on 05 September 2007

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The ideals of comprehension and diligence must be prolonged Lithuania was shaken by tragedy in Poland, when country have lost a good friend President Lech Kaczynski and a great number of political elite.

But the life must continue.

About Polish and Lithuanian relations we are talking with Poland Ambassador in Lithuania MR. JANUSZ SKOLIMOWSKI

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Photos: from archives of ambassy of Poland President of Republic of Lithuania Ms. Dalia Grybauskaitë, Ambassador Extraordinary and Plenipotentiary of Republic of Poland in Lithuania Mr. Janusz Skolimowski, Adviser of the Embassy of Republic of Poland in Vilnius Mr. Andrzej Kupiec, Director of Polish Institute Ms. Maùgorzata Kasner, Minister-Adviser of the Embassy of Republic of Poland in Vilnius Ms. Ewa Figel, prof. Alfredas Bumblauskas (the exposition of the picture “Lublin Union” by J. Matejko in Vilnius in January 2010)

BiL During her visit to Poland, the President of Republic of Lithuania emphasized that the interests of Lithuania and Poland in the European Union are the same and that Lithuania is ready to settle problems urgent for both states. Is a spirit of cooperation felt?

President Lech Kaczynski tragically died on 10 April 2010 in plane crush near Smolensk. His last visit was paid in Vilnius on 8 April 2010. It was a continuation of his participation in celebration of the national holiday in Lithuania. President Kaczynski was the promotor of good and constructive relations between Poland and Lithuania.

We hope, that after this great loss, the leaders of our countries will prolong this ideals of comprehension and diligence.

Between Poland and Lithuania do not exist any problems related to the cooperation on international forum – in the framework of European Union or North Atlantic Alliance, whereas, the problems of Polish minority in Lithuania (which resolving were envisaged in the Treaty from 26 April 1994 between Poland and Lithuania on friendly relations and good-neighbourly cooperation) discussed for many years, cast a shadow over mutual relations.

Nevertheless, the efforts of heads of our

states and successive governments aimed at resolving concrete problems, have to be assessed positively.

BiL How events in Lithuanian policy, economy and culture are reflected in the society and mass media of Poland? Is information on our state sufficient?

the question of unfavourable attitude of Lithuanian government towards functioning of Orlen Lietuva. News are focused on hindering the company’s efforts aimed at maintaining its profitability, such as: establishing the pipeline connection from refinery in Maþeikiai to the terminal in Klaipëda which would operate on usual economic procedures or reconstruction of rail track between refinery and border with Latvia, which was dismantled by Lithuanian side.

The attitude of Lithuanian authorities to the issue of rules of spelling surnames and other concerning the rights of Polish minority to which observance Lithuania committed under the Treaty from 26 April 1994, are also met with certain incomprehension and irritation from Polish mass media.

Not only the information about activity and problems of Polish minority is emphasized but also concerning important events of political, economic and cultural life of Lithuania.

News about Lithuania in Polish media are presented objectively. All events and issues important for bilateral and regional relations are presented systematically.

Recently, the growing number of economic news have been observed, including

BiL Lithuanians are proud of the Battle of Grunwald /Þalgiris) in 1410 when the united armies of Lithuania and Poland defeated the Teutonic Order. What weight attaches Polish community to this date and how it will be celebrated?

President Kaczynski was the promotor of good and constructive relations between Poland and Lithuania. We hope, that after this great loss, the leaders of our countries will prolong this ideals of comprehension and diligence.

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The anniversary of Grunwald’s battle has become an inherent part of Polish national identity. It prove not only this year’s celebrations but also the meetings which have been organized on Grunwald’s fields for many years, as an bottom-up initiative.

It shows not only our great respect to the history but also the ability to incorporate this history to the present time. The anniversary celebrations are being prepared by joint Polish-Lithuanian Committee for Official Celebrations of the 600th Anniversary of the battle of Grunwald. Programme of celebrations - in several languages, also in Lithuanian - is available on the website www.grunwald600.pl.

BiL Lithuania and Poland are bound by rich historical and cultural experience.

Please, mention any important projects on cooperation of Lithuanians and Poles in economy and culture, such as exhibitions, plain air meetings of artists, business expositions and missions.

The various forms of bilateral cooperation in the area of culture have to be mentioned. The educational-cultural projects in the framework of Chopin Year in Lithuania should be numbered among of the most interesting ones. Moreover, the Polish Institute in Vilnius implements many other undertakings, such as: promotion of Polish literature during International Book Fair in Vilnius, the Week of Polish Film, Summer Concerts on the Adam Mickiewicz Museum’s courtyard. The very successful example of cooperation with Lithuanian Art Museum were the exhibition of Jan Matejko painting “Lublin’s Union” and earlier “Battle of Grunwald”.

In the field of economic cooperation between Poland and Lithuania, one of the most important are the infrastructural projects concerning transport and energy interconnections, which have been developed for many years. Their realization is one of the key factors for improving our economic relations.

In order to increase our bilateral economic turnovers, the Trade and Investment Promotion Section of Polish Embassy in Lithuania carries on a lot of activities on Lithuanian market. Only during the last months it has organized information stands on five international fairs in Vilnius and Klaipëda. In the cooperation with Lithuanian regional chambers of commerce, six

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Ambassador Extraordinary and Plenipotentiary of Republic of Poland in Lithuania Mr. Janusz Skolimowski, member of Seimas Mr. Èeslovas Jurðënas, former President Mr. Valdas Adamkus (the commemorative tree planting at Vilnius Sapiega Hospital in April 2010)

seminars have been organized in Vilnius, Kaunas, Ðiauliai, Panevëþys and Klaipëda.

The business guide through Lithuanian market has been published. For the last month in the framework of the process of arranging the relationships between Polish and Lithuanian entrepreneurs, over 850 advices have been given. In more than 500 cases, the section received the special thanks for professional assistance.

BiL Investments of Polish capital in Lithuanian economy are among the largest flows of foreign capital. What business enterprises of Polish capital predominate in Lithuania? What are the perspectives of Polish oil processing enterprise „Orlen Lietuva“?

The value of Polish investments in Lithua-

nia for fourth quarter of 2009 amounted to 3.5 bln LTL, which is a huge drop in comparison to 6.3 bln LTL in first quarter of 2008. Despite this slump, we observe growing number of Polish investors operating in Lithuania, mostly in the following sectors: refinery and chemistry, retail and wholesale trade, insurance and financial agency. Orlen Lietuva - the biggest Polish investor and tax payer in Lithuania, operates in very difficult conditions caused by cutting off the oil supply through northern branch of “Friendship” pipeline. In spite of this serious inconvenience, Orlen Lietuva managed to establish a reliable oil supply from sea, thereby ensuring the fuel security of the market. Unfortunately, the long lasting logistic problems of the company caused by Lithuanian side, with no perspective for quick solution, despite many

economic and financial proposals from Orlen Lietuva, significantly influence to financial standing of the enterprise. The company’s board has to take into account the interest of the shareholders and therefore in short term perspective, the board is determined to reduce the unjustified costs, generated by the current logistic problems.

BiL How the Government of Poland assesses the possibility to join the construction of the new nuclear power plant?

Poland for a few years, since the time of invitation to the project, has been declaring readiness to take part in a project, because of lack of nuclear energy in the Polish energy mix and interest of supplying the north-eastern part of Poland, where the shortage of energy exists. Also because of the ensuing delay in the process of finalizing the project’s realization model in recent years, Poland has taken a decision to construct two nuclear power plants and currently in this area the intensive work is being carried out. Polish government is potentially interested in project Ignalina II, awaiting concretization of the proposal.

BiL Poland is the only EU Member State that avoided the recession and its economic growth within the last year exceeded the expectations of economists. In the last year, its Gross Domestic Product increased by 1.7 percent, consumption increased by 2.3 percent and the domestic demand reduced

by 0.9 percent. What is the formula of such success of the state?

The success base in avoiding the most painful effects undoubtedly was a firm and consist conduct of the Polish government, who deterred the panic on financial market and in appropriate time took the sequence of remedial measures. First of all, it referred to drawing up and implementation in November 2008 - The Government Plan for Stability and Development, as well as introduction from 1 January 2009 – the two-rate tax. It has allowed to leave in pockets of Poles almost 8 bln PLN and thereby to sustain an individual consumption on the high level.

Moreover, the following objective as well as subjective reasons might be mentioned, as the key factors, which allowed remaining Polish economy on the path of growth.

Among objectives could be numbered: (1) high level of EU subsidies in 2009; (2) the foreign investments remaining on relatively high level; (3) debt level of individuals, lower than in many EU countries. The subjective reasons were, as follow: (1) high level of EURO 2012 infrastructure investments; (2) flexible rate of Polish zùoty, which allowed sustaining the profitability of export in the most difficult time of the crisis.

BiL Is there an opportunity to start business in Poland for Lithuanian businessmen and what spheres, in your opinion, can be successful for them?

We are, after all, in European Union. What is more, there are many reasons, we should dynamically increase the business contacts between our countries based on our direct neighbourhood, historic, cultural bonds and not seldom – on family ties.

There are no limitations in starting up business in Poland by Lithuanian entrepreneurs. We are, after all, in European Union. What is more, there are many reasons, we should dynamically increase the business contacts between our countries based on our direct neighbourhood, historic, cultural bonds and not seldom – on family ties. I would prefer not to stipulate any concrete field of economics, in which business will be a success. I would rather say, that in every field, if there will be a professional attitude to do business together with professional partner. I for my part would like to recommend Lithuanian entrepreneurs to pay attention to the program of privatisation for 2010-2011 in Poland, where are many interesting and success-prognosticating proposals.

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Polish Chamber of Commerce

The answers to questions directed to MR. ANDRZEJ ARENDARSKI, The President of Polish Chamber of Commerce, as a part of an interview for quarterly of Lithuanian Confederation of Industrialists „Best in Lithuania“ BiL While the economic crisis rages throughout Europe, Poland is being considered an oasis of stability. The economic growth in Poland was one of the greatest among the EU countries in the I quarter of 2010. A growth rate of 3.3% is forecasted for 2011.

Although the Polish Government claims to be the author of that success, it is obvious, that it is the Polish entrepreneurs who have predominantly contributed to that achievement.

How was the entrepreneurs community’s attitude to the economic crisis and how was it possible to overcome it?

Polish economic outcomes prove the stability of our economy and its high resistance to any kind of turbulence. We have avoided the global crisis. Polish entrepreneurs preserved their country form it. After the difficult year 2009, the entrepreneurs hope that the year 2010 will bring a rise in the turnover, especially in the service sector. The crisis forced the dismissed employees to take the matter into their own hands. They established over two hundred and fifty thousand new companies. The additional encouragement to set up in business are the grants from EU. A lot of optimism can be observed in the investment plans of Polish companies for the year 2010. According to the survey conducted by the Polish Chamber of Com22 |

merce, 44.5 % of the companies plan to increase the level of investment and almost 42 % plan to maintain it. Although the Polish entrepreneurs belong to the circle of the greatest business optimists, they still critically assess the conditions of making business. As a result, creating better commercial law and removing barriers is still one of the most urgent tasks for the Polish economy.

The information about capital investments in Poland is very interesting. During this year, there were 32 mergers and acquisitions which is twice as many as this time last year.

Furthermore, the total value of transactions grew form 456 mln euro to 840 mln euro.

Judging from the given data, Poland is one of the best places for capital investments.

decrease of interest rates and prices of the resources. Facing the difficulties, Polish entrepreneurs shown higher activity in searching recipients of their goods and services abroad which gave positive results in our economy.

BiL What was the Polish entrepreneurs’ reaction to the devaluation of the Polish zloty in the first phase of the crisis and in what way undertaking of such decision has influenced the Polish economy?

The Lithuanian market is very attractive to Polish entrepreneurs which is proved by the number of Polish investors (over 150). The biggest Polish foreign investment in history is the purchase of oil refinery in Maþeikiai.

The investment was supposed to be an enormous political and business venture but as a result of closing the pipeline to Maþeikiai, the problem now is to assure the profitability to this investment. The solution to the problem of transport logistics of oil and other oil products requires kind support of the Lithuanian party.

Owing to the high depreciation of PLN against EU and USD, the profits of the companies did not decrease rapidly. This process caused better economic ratios in the export sector; however, it created worse conditions for the importers. The supporting factor for the economic situation was the

BiL Despite difficult period, the Lithuania seems to attract the Poles. The value of the Polish investments abroad, in Lithuania, is growing. That process is stimulated by the good-neighbourly relations and also by the fact, that there are no essential cultural differences between our nations. Polish entrepreneurs have directed their export to the UE countries. How shall be Lithuania represented on the Polish map of export in the future?

Photos: from archives of Polish Chamber of Commerce

Mr Arendarski is visiting SPOMASZ SA. The company with its over 120 years of tradition specializes in manufacturing machines and equipment for food processing industry.

Here with Tadeusz Rak President of the Board.

Polish companies take active part in many fields of Lithuanian economy, such as oil processing, glass producing, plastics, farming and financial market. I believe that despite the occurrence of crisis, Lithuania will remain an attractive market to invest on. It is supported not only by our close neighbourhood, cultural legacy but also very good relations between our countries which can still be improved.

BiL The works connected with the construction of the Rail Baltica have been commenced in Lithuania. What’s the opinion of Polish businessmen about that project? How can Poland benefit from that project, too?

Building the paneuropean railway corridor Rail Baltica is not only an example of huge Polish – Lithuanian investment but will also bring measurable benefits. Modernization and changing the gauge of rail (adjusting it to the European norms), increasing the speed of trains, introducing automation and better safety systems in railway transport meets the most often mentioned demands of Polish and Lithuanian entrepreneurs. This kind of investment will not only bring benefits to companies but it will also lighten the motor transport and enlarge the rail transport – which is much more eco-friendly. Polish State Railways will also make benefit owing to the increased rail fares as well as the modernization of the internal railway Rail Baltica in Poland within the distance of 341km.

BiL “Energy independence” is an issue of crucial importance for both countries. Construction of a new nuclear power plant is planned in Lithuania. Building an energy bridge with Sweden is a concept discussed in

Lithuania for years long already. What energy projects are foreseen in Poland and shall they be in any way linked with Lithuania, for instance by contributing by the Polish business to the construction of the Lithuanian nuclear power plant?

Securing safety for our countries is a priority for both Polish and Lithuanian gov- Mr Arendarski is honouring Mr Valdas Adamkus with Gold Badge of Polish Chamber of Commerce. ernments. The joint venture in the field concerns building the energetic bridge 154BiL How do the Polish entrepreneurs evalukilometer long Alytus – Eùk. This investate the Lithuanian investments in Poland, ment will enable mutual support in deliverand what are the possibilities for the Lithuaing energy. Building the new nuclear power nian business to participate in the privatizaplant in Lithuania will enable transporting tion of some enterprises in Poland? the energy to the north-east regions of PoIn Poland, there are over 20 companies with land using the bridge.

Lithuanian capital. Poland right after Latvia Another interesting project is building a gas and Russia is the most often chosen country pipeline Lithuania-Poland. It will enable the

by Lithuanian entrepreneurs. Our entrepretwo countries to decrease the dependence neurs assess the engagement of Lithuanian on the main gas deliver – Gazprom. There entrepreneurs very high. Lithuanian roads will be a possibility to deliver the liquefied building companies are entering Polish natural gas from Poland to Lithuania using market. A good example of such investment the pipeline. Last year, Poland signed a conis the public tender for building the by-pass tract with Qatar for the transport of gas. It of Biaùystok won by a Lithuanian company. is supposed to be delivered by ships to the Lithuanian companies are also taking signifgasport (which is being built in Świnoujście) icant part in privatization process of Polish from the year 2014. We would like the new pharmaceutical sector or opening the drug pipeline to supply the district of Podlasie store chain Euro-Apteka. We are very open and a part of the districts of Warmia and and we invite Lithuanian entrepreneurs to Mazury. The distribution net will be built by take active part in the privatization process the Polish and Lithuanian local governments and encourage them to further investing in which will employ specialized companies.

Poland. | 23

PZU GROUP:

an active player in the Lithuanian market PZU Group, the company of Polish capital, came to Lithuania six years ago and within the first year of its activities, entered the list of insurance leaders in the country. At present, company „PZU Lietuva“ is the toehold for PZU - the insurance leader of Central Europe - in the Baltics.

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Photos: Best in Lithuania and PZU Lietuva

SIGITAS ÞUTAUTAS, General Director and Member of the Board, PZU Lietuva

Within the last year, PZU Group recorded the net profit of PLN 3.8 bln (3.3 bln Litas), which was 61 percent higher, as compared to the year 2008. This result is the best in the history of Polish insurance market.

The results of PZU Group were mainly influenced by its investment activities (both in life insurance and non-life insurance) and growing of premiums written for group life insurance. PZU Group is the synonym of stability and security for excellent financial performance and compliance with all safety criteria set by the Insurance Supervisory Commission.

One more important achievement of PZU is the upgrade of its rating (from A - to A) given by the rating agency „Standard & Poor’s”. This is the highest rating in the history of the company as well as in the financial market of Poland.

SIGITAS ÞUTAUTAS, General Director and Member of the Board of „PZU Lietuva“, speaks to the „Best in Lithuania“ about the investments and operations of Polish insurance leader.

BiL Is PZU Group satisfied with the results of its operations in Lithuania? How do they influence its future plans?

The shareholders encourage our development. In Lithuanian insurance market, we are strong in the motor third party liability insurance and Casco insurance. Last year we have been leading by the newly concluded property insurance contracts and still keep the strong focus on that insurance group. Property insurance has a con-

siderable potential to grow in Lithuania.

We are almost exclusively involved in marine and aviation insurance. Moreover, we are one of the few enterprises distributing the product of bond insurance to the large extent.

As far as the life insurance market is concerned, unit linked life insurance takes the major market share. However, clients, who expect stability, insurance coverage and guaranteed interest rate, started to consider the endowment life insurance.

They noticed that the insurance element was very small in life insurance contracts concluded earlier and all other funds were used for investment. In the end of the period of the contracts, i.e. in 10 years, the stock market fall took place and considerable amount of savings were lost. Naturally the attitude towards unit linked insurance is precautious nowadays. In general, during the time of recession people are less concerned about the life insurance, but those who care, focus on the endowment life insurance, not the unit linked insurance.

be implemented in Lithuanian market as it is much smaller than in Poland. Also, the shareholders expect us to generate at least small profit.

One of the expectations of PZU Group in Lithuania is to have a considerably small and flexible company to try some solutions.

BiL What helped to maintain stable financial position of „PZU Lietuva“ and „PZU Lietuva gyvybës draudimas“ during the recession in Lithuanian insurance market?

We did not need any financial support from the shareholders and the Authorized Capital was not increased. We have sufficient resources for our today and future activities.

BiL What is the role of the companies operating in Lithuania in PZU Group?

First of all, operating in Lithuania, PZU Group strives to demonstrate that customer care and cross-selling is efficient. We know that service cost is lower, when the client has two and more products.

Secondly, it takes less time for idea to

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One of the state-controlled insurance indicators is the solvency ratio. If the activities of the enterprise are detrimental, one of the components decreases and the solvency ratio gets worse. Despite the recession, we kept the solvency ratio set out by the Insurance Supervisory Commission.

BiL In the year 2004, shareholders of PZU Group acquired and merged couple of insurance companies in Lithuania and called this to be the first phase of the development in the Baltics. What further steps will follow?

In the meanwhile, PZU Group operates foreign ventures in Ukraine and Lithuania.

Lithuania is the toehold for PZU in the Baltic states. Usually, foreign investors consider the market of the Baltics as a whole.

However, Lithuania is a specific and important market for Polish business.

BiL In addition to insurance activities, PZU Group is involved in the activities of pension funds, investment funds and saving programmes. In Lithuania, only life insurance and non-life insurance are

developed. Are there any plans to expand the range of product lines?

“PZU Lietuva” insurance group used to operate pension funds, although they were sold to investment bank “Finasta” couple of years ago. Any activity makes sense, when it reaches a certain scale.

Insurance, investments and banking very often merge together. It is up to customer to choose the way of saving – buy stocks, deposit in the banks or choose the life insurance product. Saving with life insurance element is growing. We can see it as the sales of our product on the saving for the children tuition fees is increasing.

BiL As it was said two companies owned by PZU Group will operate in Lithuania separately, although

MARIUS JUNDULAS, General Director, PZU Lietuva gyvybës draudimas

some activities will be gradually integrated for efficiency and customer satisfaction?

What steps are already performed in that direction?

We strive to bring the companies activities together as close as possible, because the clients perceive PZU as one brand. On the other hand, according to provisions of Lithuanian law, life insurance and non life insurance must be distributed by different legal entities and we will carry on this way.

We will consolidate some functions of administration, operations and accounting, etc. This will lead us to efficiency and focus on the customer service as well as improvement of our product portfolio.

THE FACTS • According to the data from the Insurance Supervisory Commission as of the 1st quarter 2010, “PZU Lietuva” had 12.9 percent of the market and was Top2 in the market by premiums written.

• The company’s insurance portfolio consists of motor third party liability insurance (45 percent), Casco insurance (20 percent), property insurance (12 percent), health, general liability and bond

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insurance - 6 percent each. The remaining part of the portfolio is presented by marine and aviation insurance as well as financial guarantee insurance.

• The portfolio of „PZU Lietuva gyvybës draudimas“ within the 1st quarter 2010, consists of unit linked insurance (42 percent), endowment insurance (30 percent) and life risk insurance (28 percent).

BiL Although Lithuanian insurance market is distributed already, new foreign investors probably cause some challenge to leaders as well.

Every new player on the insurance market enhances the competition. We do not feel any direct challenge though, we keep doing our job to achieve our business objectives.

www.pzu.lt

THE SUCCESSFUL INTERNATIONAL PILOT PROJECT WAS IMPLEMENTED IN LITHUANIA The cooperation of businessmen of Poland and Lithuania may result a considerable success. This statement was proved by UAB „Tele-Fonika Baltic“ (the representative of „Tele-Fonika Kable“, the leading manufacturer of cables of various types in East and Central Europe), established in Kaunas four years ago | L IGITA ÐOLIÛNIENË | The cooperation of businessmen of Poland and Lithuania may result a considerable success. This statement was proved

by UAB „Tele-Fonika Baltic“ (the subsidiary of „Tele-Fonika Kable“, the leading manufacturer of cables of various types in Eastern and Central Europe), established in Kaunas four years ago.

According to Mr. Eimantas Pilvelis, CEO of UAB „Tele-Fonika Baltic“, the resolution of Polish mother company (that is rapidly growing up to now) on establishing subsidiaries in other countries passed in the year 2005 is recognized a successful project.

for markets of Lithuania, Latvia, Estonia, Finland and Russia. „We must be closer to our clients,” Mr. Pilvelis says. According to him, the team of reliable professionals having established the central office of UAB „TeleFonika Baltic“ in Kaunas four years ago has won about a one third of Lithuanian market. „From the date of starting our activities in Lithuania, the volumes of sales of „TeleFonika Kable“ doubled in our business markets,” Mr. Pilvelis told.

able clients only. This strategic decision of the enterprise predetermined an absence of any “bad debts” even in these hard times. „I think the cooperation of Poles and Lithuanians allowing us to choose the direction of our activities ensured providing profits to the mother company, not losses,” Mr. Pilvelis positively assesses the joint activities of businessmen of Lithuania and Poland.

„Taking into account logistics, Lithuania is situated in a favorable place. When the subsidiary of „Tele-Fonika Kable“ was established here, servicing of customers was improved and the terms of delivery of goods became shorter,” Mr. Pilvelis said.

According to him, it is planned to present production of „Tele-Fonika Kable”, the worldwidely known manufacturer of cables usable in civil engineering, energy sector, mining industry, data transmission and oil industry, to markets of Georgia, Armenia and Azerbaijan.

The CEO of UAB „Tele-Fonika Baltic“ is sure that the success of the Company represented by him was predetermined not only by shorter terms of delivery of goods and the large assortment of cables, but also by the team of employees that remained the same for four years.

According to E. Pilvelis, human resources are one of the key secrets of the success of the Company that represents the Polish manufacturer.

At present, UAB „Tele-Fonika Baltic“ works

UAB „Tele-Fonika Baltic“ works with reli-

„We rely on our employees and motivate

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Photos: from archive of Tele-Fonika Kable High-voltage cables production line

them. So, staff fluctuations do not take place at our enterprise. I personally highly appreciate the confidence from the side of the management board of „Tele-Fonika Kable“ and the provided freedom of decisions and try to answer its hopes,” Mr. Pilvelis says.

He is sure that employment at a large international company is particularly useful for a person striving for self-realization – first of all, in the aspect of international trade and cooperation with customers from various states. „At present, my opinion on the totality of processes in business and world economy is another. I do not doubt that international combination of businesses of neighboring states is useful for both sides,” Mr. Pilvelis says.

According to him, an uninterrupted renovation process takes place in the sphere where „Tele-Fonika Kable“ is involved, so

business development is possible even in the hard times.

ous types of cables usable by customers involved in various sectors of activities.

This statement is proved by the results of the activities of „Tele-Fonika Kable“ with its five production plants in Poland, one plant in Ukraine and one – in Serbia.

Within 2008 year, the manufacturer (that is in the fourth position in Europe and in the fourteenth position in the world) sold production for 1300 million EUR. Total 9000 cables of various types with the total weight of 300 thousand tons were sold.

„We were the first subsidiary newly established by the Polish Company. The successful pilot project in cooperation with Lithuania encouraged „Tele-Fonika Kable“ to root also in other foreign states and to win more markets,” Mr. Pilvelis says.

E.Pilvelis says that in the beginning of its activities in Poland as early as in the year 1992, „Tele-Fonika Kable“ produced cables in a single production plant and was involved in export, as well. Upon favorable circumstances, the Company acquired several large national enterprises of its competitors. Within eighteen years, the Company was increasing rapidly and at present, it can offer 25 thousand vari-

He is sure that if a company wishes to extend its activities behind the state frontiers, it should establish representative offices abroad and look for opportunities of a particularly close cooperation with foreign partners.

www.tfbaltic.lt

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AVIVA LITHUANIA –

strong positions in the life insurance and pension funds market

”Aviva Lithuania” started its activity in Lithuania in 2001.

During those nine years it has become one of the leading companies providing life insurance and pension funds services in Lithuania.

“Aviva Lithuania” is a part of the international group Aviva – one of the largest companies in the world, with 300 years of experience, headquartered in London, UK.

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Aviva has grown from the merger of a number of businesses to become the fifth largest insurer in the world providing retirement, investments and insurance to 53 million customers in over 25 countries. Since forming in July 2002, over 40 brands have migrated to Aviva, including “Aviva Lithuania”.

“The brand promise of Aviva group is “no one recognizes you as Aviva”. And we believe that being a part of the group we will be able to deliver the brand promise of “Aviva” to our customers in Lithuania. It is clear that by taking extra care to recognise customers as individuals, each and every time we engage with them, we connect with them more powerfully, serving their needs better,” said Asta Ungulaitienë, General Manager of “Aviva Lithuania”.

“Aviva Lithuania” has 17 branches and sales offices in major Lithuanian cities and cooperates with around 500 financial consultants. The company has 197,000 life insurance and pension funds clients throughout Lithuania.

ASTA UNGULAITIENË, General Manager of “Aviva Lithuania”

From the starting of the operations in 2001, “Aviva Lithuania” paid out 22 million litas of claim benefits to the clients because of the insurance events and over 4 million litas of the pension benefits.

SOCIAL RESPONSIBLE COMPANY

SUSTAINABLE GROWTH AND STRONG FINANCIAL BACKGROUND “Aviva Lithuania” sustained the business volumes during the complicated year for the financial markets 2009 and earned the profit of 15.3 million litas. The number of the “Aviva Lithuania’s” new clients increased during the year 2009 by 16.700 and it continues growing – “Aviva Lithuania” signed the contracts with 5000 new life insurance and pension funds clients during the 1st quarter of the year 2010.

The assets of the life insurance and pension funds clients increased to 615 million litas in the same period.

Being very active in corporate social responsibility (CSR), Aviva has applied the CSR concept throughout the group, and this governs their approach to all business activities. As the result of this “Aviva Lithuania’s” business is characterized by various CSR projects and initiatives throughout the country. These initiatives include volunteer projects to clean up the surrounding environment and the volunteer blood donation initiative which has become an annual tradition. The company sponsors every year the children’s basketball camp and the orphanage by organizing different activities there.

“Aviva group” started recently the implementation of the new social project “Street to School”. The purpose of this project is to bring the children from disadvantage families and orphanages back to school. “Aviva Lithuania” will make its contribution to the implementation of this new project.

SOCIAL VIEWS REFLECTS THE COMPANY PRODUCTS The social awareness of the company is reflected in its products too, encouraging good health, the future of the individual and family, financial security, good education and the solving of social problems.

“Aviva Lithuania” provides their material and services in a simple and understandable way, with flexible long-term saving services that can be easily adjusted, depending on the different changes in priority that any typical family goes through over the years.

“We are happy to develop harmonious business by creating prosperity and peace of mind to our clients and to the environment we live,” said Asta Ungulaitienë, General Manager of “Aviva Lithuania”.

www.aviva.lt

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TOI TOI No.1 in Lithuania and worldwidely!

Worldwidely known TOI TOI came Lithuania in the year 2002; however, today it is closely bound with mass events and building sites. „TOI TOI & DIXI Sanitarsysteme“ has won two thirds of the European market.

The name of TOI TOI became known to Lithuania thanks to Polish businessmen. „We adopt the best business secrets from the founders of the system and successfully apply them in Lithuania,” President of UAB „TOI TOI sanitarinës sistemos“ /“TOI TOI Sanitary systems“/ MINDAUGAS KIURA says

otoilets. In future, they should appear in every campsite, resort or beach where no stationary toilets are arranged. Picnics of the staff of a large enterprise will be impossible without biotoilets, the mobile sanitary systems,” the Head of the company describes the perspectives of development of its business.

THE NETWORK OF SERVICES IS EXTENDED From a company involved in hiring sanitary points, it grew into a company involved in providing various services. The wide spectrum of its services includes everyday cleaning of premises, special cleaning works, maintenance of outdoor territories, putting of territories in good order after events and so on.

Mindaugas Kiura, President of UAB „TOI TOI sanitarinës sistemos“

THE FIRST AND THE LARGEST It is true that the principles of business and management are applied here successfully. The company occupies 70 percent of the local market; in addition, it extends its activities in Latvia, Estonia and Belarus.

“We completed the market research and penetrated onto it in the very nick of time. At the moment of starting our activities, no specialized national enterprise was involved in such activities. While other enterprises had biotoilets and let them out for hire, we offered another service to a client: to transport a biotoilet to any place, to maintain and clean it by special machines on a regular basis. The core of the business is a proper maintenance of a biotoilet, not its rent,” M. Kiura explains.

M. Kiura remembers the starting of the business as a period of new challenges. „Local companies had a wholesome resort for businesses related to providing sanitary services,” the President of the enterprise says.

Although the first clients eight years ago were not grave, the new flexible company with worldwidely known trade name was noticed at once in the market. „Nobody could offer such a number of biotoilets from the single company. Finally, the community should perceive a necessity of sanitary systems. Biotoilets seemed to be unnecessary during mass events to a majority when each participant conducts in the own way. Today organizers of mass events are obliged to care about a sanitary system; otherwise, they are not provided the permission for such event. The number of sanitary points is established in accordance with the number of participants,” M. Kiura told.

According to him, the first users of biotoilets in Lithuania were full of wonder at their internal cleanness and told such level of hygiene did not exist even at their homes.

“In EU Member States, there is one biotoilet per ten thousand population. In Lithuania, a potential market is 2000-2500 bi-

„Cleaning services are our innovation. Hiring of sanitary systems depends on the seasons. In the cold period, we extend the spectrum of our cleaning services,” the President of the enterprise mentioned.

More and more building companies apply to „TOI TOI sanitarinës sistemos“, because the company rents out both fences and containers for construction works.

Just a little ago, not all companies cared about good order on the sites. However, they are forced to care about it today according to the established procedure. „TOI TOI sanitarinës sistemos“ fences the territory and provides no chance for unsafety.

THE INNOVATION: RENT OF CAMPS Visitors of large-scale music festivals in Poland and other countries can assess the recent innovations offered by TOI TOI. One of them is sanitary wagons with marble decoration and abundant mirrors. Businessman M. Kiura says that organizers and participants of mass event require permanent improving the quality of the services provided.

So, the company offered luxurious containers with original interior and integrated halogen lamps both to foreign and Lithuanian organizers of events. „The number of clients interested in extraordinary quality is increasing. We offer them already the so called TOI-Camps, i.e. campsites with showers, toilets, places for tents and so on.

Benches and guards are provided as well,” M. Kiura describes the innovation of the market.

THE DIRECTION: TO SCANDINAVIA The “TOI TOI“ conception on hygiene and personal culture was brought to Lithuania from the West. So, the company led by M. Kiura firmly tackled the markets of Latvia, Estonia and Kaliningrad Region. For 3.5 years, it works in Belarus. Enterprises established by Lithuanians, operate both in Belarus and Kaliningrad Region.

According to M. Kiura, the best advertisements are those transferred from lip to lip. In every country, clients share their impressions and assess a flexibility of service providers. | 33

The system of containers

It is expected that flexibility of Lithuanians would attract Scandinavians as well. „Within three or four years, we’d like to enter interesting and high-priced Scandinavian market. There are abundant providers of such services in the said market; however, they are enterprises of the local capital working in the local market only. Our advantages include the worldwidely known name and the experience in many countries,” the President of „TOI TOI sanitarinës sistemos“ explains.

In five countries, the company controls 75 percent of the market. „The need is further growing. Within the next five years, we plan doubling the number of cabins,” the President of the company says. Thanks to smart management and flexibility, „TOI TOI sanitarinës sistemos“ avoided reduction of its staff even upon the crisis.

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In addition to organizers of mass events and local authorities, 1500 clients of the company include NATO Air Forces, Lithuanian Army and abundant business companies.

The Head of the company believes in successful development of the business and expects excellent results in future.

www.toitoi.lt

Polish business philosophy successfully applied in Lithuania For many years, Lithuanian IT company “Baltijos kompiuteriø centras” /”The Baltic Computer Center”/ is inseparable from the name of “ComputerLand”. In addition to the successful representation of the said large corporation in the country, “Baltijos kompiuteriø centras” joined “Sygnity” Group in the year 1998 and was provided with the new capital and the new business philosophy as well as huge experience.

A RAPID GROWING STARTED The trademark of “ComputerLand” is bound in Lithuania with “Baltijos kompiuteriø centras” today as well.

However, Polish company with the same name (“ComputerLand”), having acquired the Lithuanian IT company in 1998, provided it with new opportunities and helped it to grow up to the today level.

“Since the year 1998, we are very strongly bound with Poland: we have adopted the business philosophy and the management skills of the partners, thus avoiding errors,” Albertas Ramanauskas, the Director of “Baltijos kompiuteriø centras”, told.

The name of “Sygnity” is well-known out of Poland as well. The Group was formed by merging of two large IT companies. According to A.Ramanauskas, the oneness of “Sygnity” includes a high value in each country, knowledge and competence, long-year 36 |

experience and an ability to provide effective solutions to small enterprises. “So, we are able to offer useful decisions to enterprises. It is the goal of “Sygnity” group,” the Head of “Baltijos kompiuteriø centras” says.

According to A. Ramanauskas, when Polish capital entered the company in 1998, the whole business philosophy changed. “There is a considerable difference between “Baltijos kompiuteriø centras” before and after the year 1998. We adopted the experience of Poles in their market and applied it for the smaller market of Lithuania.

You can introduce such a practice, if you have a strong partner having an experience of working with big clients. Abundant phenomena express themselves in Poland earlier, than in Lithuania. So, we can forecast their run in our country. In addition, it helps to avoid errors experienced by Poland,” A.Ramanauskas described the advantages of „Sygnity“ Group.

THE ERA OF NICHE SERVICES “Our company is small, so increasing the number of clients is of a great importance for us. We help to each of them in choosing IT means, formation of the infrastructure and maintenance of the whole system. The said activities are traditional and everybody starts from them. However, we strive for anything else to increase the value of the enterprise,” the talker says.

So, “Baltijos kompiuteriø centras” started additional activities.

With assistance of Poles, the company entered the era of digital television just having come to Lithuania. At present, TV signals are digitalized. “We supply equipment involved in transmitting digital TV signals. Upon transmitting in the traditional way, we do not take into account that the capacity of channels is limited and the speed of internet is not always the same. Certain equipment helps to avoid delays of transmission. Data transmission problems are settled in various ways,” A.Ramanauskas tells about the niche products.

ORIENTED TOWARDS SMALL ENTERPRISES Any person is capable to sell “boxes”, i.e. computers. However, offering good intellectual solutions to business enterprises is a very complicated task, in particular, in small Lithuanian market.

According to A. Ramanauskas, while settling problems of a small enterprise, you as if take part in its formation, so you care about successful development of its business. It is much more important as compared to working with large companies involved in powerful flows of the activities.

“So, we orient ourselves to small and medium-size enterprises offering them our products or services. It is a part of the philosophy of our group,“ A. Ramanauskas says.

UNIQUE SOLUTIONS FOR GARMENT ENTERPRISES One more niche of the activities of „Baltijos kompiuteriø centras“ is bound with enterprises of light industry. The company introduces business management systems for garment enterprises and printing houses. Solutions developed by the company help to such enterprises to gain advantages against their competitors. So, it is not surprising that this IT company is a member of Lithuanian Apparel and Textile Industry Association. „For many years, we can see the internal side of light industry enterprises. We advise them how to organize their joint activities striving for benefit for each enterprise,” Head of the company A.Ramanauskas says.

In his opinion, the trend of individualized production becomes clear in garment industry. “Every enterprise needs designing and other systems. However, it is difficult to form all of them at one enterprise. So, our task is to offer them a needed solution welltimely,” the Director of „Baltijos kompiuteriø centras“ asserts.

www.bkc.lt

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Vilnius district – a pearl on the map of Lithuania THE SELF-GOVERNMENT OF VILNIUS DISTRICT – THE LEADER OF THE PARTNERSHIP In Vilnius District that surrounds the capital, the Poles form 61.3% of the population; the District maintains close cultural, economic and other relations with Poland. 41 of 43 official foreign partners of the Self-Government of Vilnius District are from Poland. According to the data from the Association of Local Authorities of Lithuania, this indicator is the highest over Lithuania. Vilnius District successfully cooperates with Szczytno district of Poland: on the base of the agreement on partnership, the said county transferred furnishing and pictures to Pikeliðkës Manor, vehicles to Vilnius Area Ethnography Museum and Aviþieniai Secondary School; in addition, it arranges summer camps in Poland for children from Vilnius District, provides books and other training aids to schools.

Intensive cooperation with Warsaw University takes place as well: in summer 2009, the Self-government arranged working on probation in Lithuania for students of the said University; representatives of the Self-government took part in the scientific conference arranged by the University; partners implement other joint projects as well. Professors and lecturers of Warsaw University Ethnology and Cultural Anthropology Faculty, together with students, formed the base of Vilnius Area Ethnography Museum in Nemenèinë: they collected the first exhibits.

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Vilnius District is a region of agriculturalists, so the Self-government of Vilnius District cooperates with representatives of the authorities of the foreign state in agriculture as well by participation in joint projects for obtaining a support from EU. NATURE OF AN UNIQUE BEAUTY The colourful landscape of Vilnius District is worth of painting by best painters: thick forests, fields between rural farmsteads, bands of rivers and rivulets curving among hills and lowlands, lakes surrounded by grasslands and forests.

Tourists and holidaymakers can find excellent places for recreation at water bodies both in summer and winter. Abundant mushrooms wait for their collectors. The angling fraternity can enjoy catching large fishes.

Both those knowing the beauty of these localities and those looking for new islands of silence and quietness come here. No wonder that both neighbours and guests from far countries envy us the landscape.

The geographical center of Europe as well as the European Park, Neris Regional Park, and the Stone Sculpture Park are situated in Vilnius District.

THE PROSPERING CULTURE The population of Vilnius District remains loyal to the traditions of their ancestry and their national identity.

Vilnius District is a mosaic of nations, cultures and confessions. Its population of 99.9 thousand includes Poles – 61.3%, Lithuanians – 22.4%, Russians – 8.4%, Byelorussians – 4.4%, Ukrainians, Tartars, Jewry and other 3.5%.

At cultural centers of the District, both religious and secular feasts, such as Christmas, New Year, Three Kings, Muslim feast Kurban Bairam, Kaziukas Fair, Shrovetide and so on are arranged.

In September, the traditional Harvest-home of the region is arranged (this year, it will be the 15th), when abun- Leisure complex „Viva Green Resort“ dant foreign guests (first of all, from Poland) come to the Within a short period, members of the group brought ancient utensils territory of Pikeliðkës Manor. This impressive event crowns the works from their lofts and helped to arrange the premises for expositions. of farmers for the whole year. This year, it will be provided with new Those housewares show the past of our ancestry. Here, palms of varicolours because it is involved in the joint project of Vilnius District ous sizes (from 0.3 to 2 m) and shape woven of dried flowers and grass and Wægorzewo (Poland) Museam of Folk Culture for obtaining a fifrom fields, grasslands, forests and gardens are presented. nancial support from the European Union. In the Harvest-home on 25 The key trend of the activities of the Museum – to disclose and fix September, farmers from all parts of Vilnius District as well as guests alive sources of local culture, to prevent them from disappearance, – farmers from Eùk region of Poland will be involved. to arrange expeditions for exploration of the local folklore, to involve Cultural groups of Vilnius District keep close relations with foreign more youth in the said activities (by cooperation with schools), to cultural centers, visit cultural and other festivals where demonstrate cherish and propagate palm-related trade in the state and abroad. their artistic skills and acquire new ones. Artistic groups from Vilnius Such exhibitions are arranged since the year 1995. Within 10 years of District go to traditional cultural events of Poland, such as Siedlce their activities, employees of the Granary diligently collect, register, Days, the traditional “Herody“ survey of cultural Christmas prodescribe and store the ethnocultural heritage of Vilnius Area. grammes in Wægorzewo, the Boundary cultural festivals in Mràgowo, At the Granary, the group of palm-makers „Cicha Nowinka“ operates; Kaziukas Fairs in Eùk, Giżycko, Suwaùki, Stargard Szczeciński, Gdyin fact, the Granary was established by its members. nia, Warszawa, Zgierz, and Ostróda, Vilnius Days in Gdańsk, Easter fairs in Warsaw, and summer fairs in Ùapy.

THE DEVELOPED INFRASTRUCTURE ÈEKONIÐKËS GRANARY-MUSEUM OF RURAL LIFE AND PALMS, VILNIUS AREA ETHNOGRAPHIC MUSEUM In the year 2000, Èekoniðkës Granary-Museum of Rural Life and Palms was established in Èekoniðkës Village of the territory of Zujûnai Rural Administration (20 km from Vilnius).

One of the most important advantages of Vilnius District is its geographical location. Vilnius District surrounds Vilnius, the capital of the state, as a symbolic ring from all sides. Suburban transport for passengers and the network of roads in Vilnius District are planned in a way that ensures an accessibility of Vilnius and rural centers for the population of the District. Striving to obtain EU support for road reconstruction in the years 2010-2011, the Self-Government of Vilnius District had developed projects amounted total to about LTL 17.6 million. In the year 2009, Vilnius Self-government was the only local authority of Lithuania that allotted its funds for medical facilities – construction of Ðumskas Hospital and reconstruction of Nemenèinë Hospital. Vilnius District Outpatient Hospital (recently it celebrated its 20-year anniversary) is a modern institution with sophisticated apparatus, renovated buildings and high qualification professionals.

FAVORABLE CONDITIONS FOR BUSINESS

Ginuèiai water-powered mill

In Vilnius District, favorable conditions for business are ensured. In Vilnius District, the rates of land leasing are very low as compared to other localities of Vilnius County: 0.1-0.2% of the average market price of a plot of land. The maximum rate fixable by councils of local authorities can be equal even to 4%. In addition, the Council of the Self-Government of Vilnius District established the rates of profit tax on individual activities that are among the lowest ones in Vilnius County. In Vilnius District, rates of public utilities, such as water sup-

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Mansion "Karvio Dvaras" (sauna)

Members of folk ensemble "Cicha Nowinka"

Dûkðtos oak-wood

ply, heating and so on, are also among the lowest ones in the country.

So, enterprises established in Vilnius District enjoy less administrative expenses.

The rate of the Real Estate Tax (0.5 – 0.8% of the value of the real estate in the year 2010, i.e. one of the lowest in the Republic) contributes to formation of sufficiently favorable business environment as well. The advantages of 0.5 – 0.8% also include cheap and high qualification manpower, the lowest prices of outdoor advertisements in the state and inconsiderable competition among enterprises.

INVESTMENT IN EDUCATION In the period between the years 2004 and 2004, the Polish society “Wspólnota Polska” invested almost LTL 10 million in educational institutions of Vilnius District. The said funds were used for reconstruction, renovation, equipment or building of 14 educational institutions.

The above-mentioned funds were used for extension of educational institutions, repairs of their premises; at Ðumskas Basic School, a boiling-room was equipped.

MULTIMEDIA CENTER – IN ÐUMSKAS At Ðumskas library, establishing an educational center of recent technologies that will provide an opportunity to get to know the world of technologies to children, youth and adults as well as to use a special computer system is planned. The center will be an original laboratory with access to internet, specialized software, a visualization system, digital cameras, music centers, scanners and other equipment. The project is jointly implemented by Vilnius District Central Library and Suwaùki (Poland) M. Konopnicka Public Library.

In December 2009, a study on implementing the project “Interactive science and technology center “Multicentras” in Suwaùki (Poland) and Ðumskas (Vilnius District)” was provided to the Joint technical Secretariat as a measure of European Neighborship and Partnership.

The project has been developed under the international programme for cooperation of frontier regions of Lithuania and Poland.

Vilnoja park

A PEARL OF LITHUANIA Vilnius District is an odd sort of pearl of Lithuania: if you come there, you’ll find nature of indescribable beauty, hospitable population and favorable conditions for developing your business, in other words, an exclusive oasis where modern living is accompanied by cherishing the traditions combined with fidelity to religious and patriotic values.

We invite you to the exclusive point on the map of Lithuania – Vilnius District – and look forward to see you here!

YOUTH EXCHANGE Children and youth from schools of Vilnius District as well as nongovernmental organizations of the District are involved in partnership projects with educational institutions and organizations of Poland on organizing summer recreation camps for children and youth. The young generation of Vilnius District, together with youth of Poland, is go-ahead in the activities under projects financed by EU (Comenius, Comenius Regio, Youth in Action).

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Nemenèinë

Maiðiagala www.vilniaus-r.lt

Each new acquaintance with a client increases the demand

Company of Lithuanian capital „Skuba“ involved in trading in spare parts for trucks of all marks with seven European states made sure that knowing the final client is the passport to success. So, it uses this hard period as a stepping-stone for a bound forward

I

n UAB „Skuba“, export forms 63 percent of the total volume of the trade in spare parts. About a half of the parts are exported to Russia, Ukraine and Belarus; the other half is sold in Latvia, Estonia, Finland, Poland, Romania and Hungary.

The policy-makers of the Company consider Poland one of the most perspective states for extension of the activities of the Company: today, three branches of its sec42 |

ondary company „Skuba Polska“ (based in Warsaw) are established in Katowice, Ùódź and Poznań. About 50 workplaces were established and their number will increase in the nearest future.

of Poland in Lithuania, „Skuba“ company is one of five companies of Lithuanian capital having made largest investments in Poland within the latter years.

In the early summer, two new trading centers will be established in neighbouring Poland where new business extension ideas are planned to be implemented.

According to the data from the Embassy

FAVORABLE CONDITIONS FOR BUSINESS PARTNERSHIP ARE ENSURED Although two new branches of „Skuba Polska“ will be opened in Poland very soon,

implementing more significant investing plans in this country is provisionally suspended. „The key task of our activities in a foreign market is extension of the trading network. At present, we have four our trading centers in Poland; in this hard period, we did not close them; however, we were forced to cancel extension of the network.

In addition, we were forced to change the principle of establishing new trading sites: we choose the method of franchise. If the said model of extension shows itself to be fit, we’ll be ready to join the trading sites working under franchise to the Company as its subdivisions. So, we offer to businessmen from Poland to cooperate and plan to ensure favorable conditions for developing a product to be acquired by us from them later,” Commerce director of UAB „Skuba“ Egidijus Valeiða explains. According to him, two demonstrative points-of-sale of the said type under the flag of “Skuba” company will be established in Poland in the early summer.

STRIVING TO A BETTER PRICE FOR A CLIENT According to the talker, in the period of economic growth when trade prospered, price of spare parts was important neither for the buyer nor the supplier, so everybody enjoyed the growing demand and increasing turnovers. However, it was already clear that the key buyers of parts in Poland were commercial agents (not final users) and they made considerable profits from these activities. „It seems to be paradoxical. We try to sell the commodities to the final users; however, up to now we have only few of them in Poland. A commercial agent can appear and disappear. So, two year ago, we be-

gan to form a database on Polish carriers and their stocks of trucks. Our goal was direct providing an offer on the quality/ price ratio required by them in future. The said future has come already,” E.Valeiða states. The businessman does not conceal that the formed database disclosed a considerable distance between the end users and trading warehouses. „If any client does not concern about the quality and price of the parts, an accessibility of a product always remains the aspect of priority,” the talker says.

EVERYTHING IN THE SAME PLACE Trading in spare parts for trucks, buses and semitrailers remains the principal activities of the enterprise; today the Company can state that clients will find a rich assortment of spare parts at its warehouses and it should satisfy almost 100 percent of their needs.

A majority of permanent suppliers are well-known European companies. On choosing suppliers, we take into account their reputation, reliability, the quality of the products, the country of origin and

the terms of delivery. The assortment of spare parts offered increases permanently. For convenience of its partners, UAB „Skuba“ introduces modern information systems providing an opportunity of rapid and exact choosing and ordering the products needed to them. Even most fastidious clients are satisfied with the variety of our assortment. We provide them catalogues of manufacturers, advertising and information materials; in addition, various seminars and training are arranged.

In Lithuania and Estonia, „Skuba“ company is the official representative of RENAULT TRUCKS concern, so it is involved in trade in new RENAULT trucks and used trucks of all marks in these countries. In Estonia and Lithuania, it is involved in truck maintenance and repairs as well.

www.skuba.lt

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UAB „GARGÞDØ MIDA” the only bitumen tiles producers in the Baltic countries

Experimental building materials factory was established in Gargþdai in 1960. After several years of producing building materials bituminous roof coverings were started to be produced.

In 1992, the building materials factory host became industry and finance corporation of western Lithuania. The new owners restructured production into three plants. UAB „Gargþdø mida” became one of the three factories that produced bitumen roof coverings.

pany’s Reiser automatic bituminous roof covering the production line. This line’s performance is 50 000 m² roof coverings daily.

In 2007. more than 20 millions of dollars were invested in the mill. It modernized tiles production line and a new roll roof line.

In 1993 - 1994, 12 million dollars were invested in production line installation. With the most advanced in Europe German com-

In 2001 and 2007, the plant was recognized as the Best product of the year and awarded with golden award.

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Even twice in 2007 and 2009, UAB „Gargþdø mida” was recognized as the most successful company in Lithuania.

For already sixteen years, the plant produces high quality, European standards bitumen tiles „shinglas“. Raw materials must be transported from different countries - Germany, Belgium, France, Russia, Ukraine, Korea and others.

The plant may offer more than 200 types of forms and tonal tiles conforming to the European standards. Tiles are sorted according to cutting form: sonata, accord, trio super, tango super, delta, hexagonal.

Also tiles vary in a wide color gamma, which provides that the roof will take you to pieces, and the building or structure has a great architectural expression, which perfectly fits to the surroundings.

These innovative roof coverings are widely used in construction works in various civil and industrial facilities. Easy tiles lay route and 100 % tightness to cover both concrete and wooden home roofs and frame and other structures roofs. Also, schools, hospitals, day-care centers and other construction object roofs. Tiles can be as simple and complex structure roofs, even as cupolas.

Physical-mechanical roofing tiles characteristics shall ensure the reliability and longevity at any roof configuration, the slope from 12°.

Top tiles are coated with basalt covering, which provides color. Special mineral covered grain processing ensures long-term persistent color pigment and protective function weather, whereas the pigment is

installed in the grain surface. The tiles are also protected from damage.

Coating of noise. It does not induce the snow landslides, snow just slightly slides on the granite covering textured surface of plastic tiles. Flexible tiles do not record of static electricity, don not magnetize and do not invoke lightning. Tiles have the resistance to fire performance of roof coverings protection against fire hazard, even when there is direct contact with flame.

The plant, which employs more than 100 people, already more than ten years ago received ISO 9001 quality management system. Both the raw materials and the production quality are strictly controlled by the laboratory. Laboratory with firstclass equipment has been set to perform its production quality control.

The factory is proud to meet the needs of all construction organizations - they have already led to great this factory production quality guarantees and acceptable price.

2010 year in sales volumes, compared to 2009 year. In particular, the old European countries led „Gargþdø midos” to increase the volume of production orders. Production of consumer is popular and valued in Latvia, Poland, the Czech Republic, Slovakia, Turkey, Greece, Italy, Spain, Hungary, Romania, Bulgaria, New Zealand, Great Britain, and Ireland.

Nearest factory plans are and continue to expand production implementation geography to Western Europe and Scandinavian markets. The plant has already set some brave steps and handles very competitive Scandinavian market.

ACCORD

SONATA

TANGO SUPER

TRIO SUPER

www.mida.lt

| 45

The entry of

MINERALINIAI VANDENYS to Poland started with STUMBRAS beverages

Marijus Cilcius, Managing director of “Mineraliniai vandenys”

We are talking with the company’s managing director Marijus Cilcius about the first steps of Mineraliniai Vandenys (MV) – the biggest distributor of alcohol and tobacco products in the three Baltic States – in entering the Polish market and about the biggest challenges awaiting the company in its export markets in the nearest decade.

BiL What encouraged MV to start looking at the Polish market?

Lithuania has always been in close relationship with this neighbouring country, Polish consumers have also appreciated the products of Lithuanian producers, including the vodka of Stumbras – the 46 |

The Lithuanian and Polish traditions of the production of alcoholic beverages have been in step with each other since long ago – after all, even today people still argue, which of the countries gave rise to the most archaic beverage of this region – mead, and who were the first ones to start producing vodka from grain.

It is also no wonder that even in the XXI century, beer and vodka still remain the most popular beverages in both of the countries.

oldest and largest Lithuanian producer of alcoholic beverages. MV obtained this factory in 2003, and already after organizational and management reforms in 2007, MV started representing Stumbras in Poland thus guaranteeing a stable base for MV development in this export market. It is already three years when we are distributing the products of Stumbras not only in Poland but also in other Baltic countries – Latvia and Estonia.

BiL How does the Polish market differ from the rest of your export markets?

The Polish market is considerably bigger than that of the three Baltic countries in

conjunction, the market economy has a longer tradition there, and better enterprise skills of the citizens enable small and medium business to play a more important role in economics. For these and other reasons, the Polish market has developed business models that are unusual to us, so here we follow the principle “do not wonder but watch”.

Poland has a much more developed free trade market, i.e. sales places independent of the chains and many wholesale companies that distribute products to retail points, moreover, some of them have got their own shops. Whereas our company, through our 120 partners and directly, supply our represented products to 15,000 sales points. We coop-

erate with the major international sales networks Auchan, E.Leclerc, Euro cash, Makro, Real, Kaufland, etc., and build the team to work in the segment of hotels, restaurants and cafes (HoReCa).

Polish market has developed business models that are unusual to us, so here we follow the principle “do not wonder but watch”

BiL Does a Pole’s choice of beverages differ from a Lithuanian’s, Latvian’s or Estonian’s?

As Polish citizens earlier than the citizens of the three Baltic countries had a possibility to travel abroad and to buy beverages there, well-known international brands are popular in this market. Actually, each of the Baltic countries has its own specifics: the growth of the Estonian market of beverages is greatly influenced by Scandinavian visitors who can buy more beverages of familiar brands in this country than at the same price in their home country; Latvia has many citizens of Russian nationality and receives many Russian tourists who focus on premium brands, especially vodkas. Lithuanian market is less influenced by tourists, the network of

hotels, restaurants and cafes is less developed, and therefore, we traditionally consume more beverages at home. Actually, all of the three Baltic States have got a strong local industry of beverages and its products prevail in the main categories of local market.

BiL How was the Polish market influenced by the crisis of 2008 in comparison to the rest of your export markets?

Poland is the only country in the EU, which over the entire period of economic recession managed to maintain a positive GDP growth. The experts motivate the surprising Poland’s resistance to economic recession by a large local market, a smaller boom of the loans and real estate sector in comparison to the Baltics, and a smaller decline of export. In the context of general tendencies of economy, the turnover of MV in this country increased by 4%.

Regardless of negative market tendencies prevailing in Estonia and Latvia,

Regardless of negative market tendencies prevailing in Estonia and Latvia, we even managed to improve our results in these countries

we even managed to improve our results in these countries: in Estonia, we expanded almost three times and in Latvia – almost four times. In Lithuania, our results last year were changing in line with the general food, alcohol and tobacco market, which went down by about one fifth. Thus, by expanding our activities in export markets, in 2009, we brought stabilization into consolidated sales with incurrence of 4% downfall.

BiL What encouraged the growth of MV in its export markets?

Last year, our branches in Estonia and Latvia expanded the range of the main categories of beverages and had been cooperating with all the key accounts; they also expanded distribution in regional free market shops and in the HoReCa sector. If until the end of the last year in Poland we represented only the beverages of Stumbras, now our distribution includes the wines Baron d‘Arignac, La Terre, Bianchi, etc. in this market. This will help us increase our results already this year.

BiL What are your plans in Poland and in other export markets?

We anticipate that for Latvia, the year 2010 will be the hardest one among the three Baltic States. For this country, a further economic decline of 3-4% is forecasted, while in Estonia, we expect a slight growth of GDP. In these countries, we plan to continue strengthening our

THE LITHUANIAN ECONOMY IS EXPECTED TO REMAIN IN THE SITUATION SIMILAR TO THE ONE IN 2009

COUNTRY

GDP CHANGE*

EXPORT CHANGE**

RETAIL TRADE CHANGE*

SALES OF FOOD PRODUCTS, ALCOHOLIC BEVERAGES AND TOBACCO PRODUCTS*

Lithuania

 15%

 30%

 28%

 19%

Latvia

 18%

 33%

 28%

 20%

Estonia

 14%

 25%

 15%

 8%

Poland

 2%

 19%

 4%

 10%

* 2009 preliminary data ** January-November 2009 Sources: V. Þukauskas (Policy Analyst at the Lithuanian Free Market Institute), Department of Statistics of Lithuania, Latvia and Estonia, International Monetary Fund, European Commission, 25th survey of the Lithuanian Free Market Institute, Eurostat.

| 47

In the Baltic market MV is distinguished by a strong and diverse team of beverages experts

positions in the HoReCa segment and in all of the sales channels. It is forecasted that the economy of Poland will increase by 2-3 % or more this year. In this market, we have already expanded our portfolio and distribute the trademarks represented in other Baltic States – Russian vodkas Beluga and Kalashnikov, the CLWB whiskeys Scottish Leader, Bunnahabhain, etc., the Angostura rums and the Hine and Monnet cognacs. With the plans to continue expanding our portfolio and the network of distribution channels, we anticipate that during the nearest couple of years, Poland, which is already now our biggest export market by the volume of sales, will strengthen its positions even more.

BiL What trends of the Baltic beverage market still make this region different from Western Europe?

Currently, MV is the only company in Lithuania importing alcoholic beverages that owns boutique stores “Gero Vyno Parduotuve"

48 |

In western countries, international brands of strong alcoholic bever-

Europe are still popular; however, this tendency will change together with the change of generations. The Baltic States still have a smaller market of cocktails, and talking about the distribution channels, the HoReCa sector in the Baltics is still rather small.

We anticipate that during the nearest couple of years, Poland, which is already now our biggest export market by the volume of sales, will strengthen its positions even more

BiL What market changes do you expect in the nearest decade?

ages are prevalent; the categories are more fragmented, while in the Baltics, clear leading positions by the volume of sale are occupied by local beverages, with the exception of champagne, cognac, rum and some other categories that do not have local traditions of production. In the category of wine, we can notice several specific tendencies: in the Baltics, semi-dry and semi-sweet wines occupy a greater market share than in the West where the wine traditions are older by far. Besides, in Baltic States, New World wines occupy a smaller market share than in the West – for major wine producers, these markets are still too small so the prices of their wines are slightly higher compared to the West. In post-soviet area, the wines from Eastern

In any case, the Baltic markets are not mature yet, so certain brands occupy a prevailing market share surpassing that of the competitors. However, in the future, like in the Western Europe, the range of products will expand, the categories will become more fragmented

In the future, in the markets of the three Baltic States, the range of products will expand, more categories will appear and they will become more fragmented

and the competition among brands will become more intense. Besides, more categories will appear. In the countries more affected by the crisis a changed behavior of consumers will remain; however, the sensitivity to price will not mean that consumers will look for the cheapest products – they will expect good quality for a better price.

Depending on the macroeconomic changes, we expect positive changes in the quality of consumption and will consider it when developing the portfolio of represented products and strengthening our positions in the region. Our competitive advantage was and will be influenced by the fact that we represent both the well-known international brands of various categories and the Lithuanian beverages of Stumbras, the producer owned by our holding MG Baltic.

www.mv.lt

ABOUT MV IN SHORT • Established in 1992, in 2009 MV ranked 18th in the list of the biggest Lithuanian enterprises. Since 2008, it went up by 4 positions.

• In 2003, MV acquired Stumbras AB – the oldest Lithuanian producer of alcoholic beverages, and since 2007, distributes its products not only in Poland but also in the three Baltic States.

• The hardest period for the biggest importer of Lithuanian beverages and tobacco was not the period of the Russian crisis (1998) but 2004 when opened borders of the EU brought substantial market changes.

• In 2005, MV not only radically rearranged its product portfolio but also established the first “Gero vyno parduotuvë“ (en.

Good Wine Shop), which are currently two in Lithuania.

• In 2007, MV expanded its activities towards Poland, Latvia and Estonia.

• The year 2008 was the most successful for the company throughout its history: MV achieved record volume of sales of the Group, which amounted to 198 million euros and was by 25% higher than in 2007.

| 49

Lithuanian linen – for European sauna The best properties of linen were always highly-rated in Lithuania.

Smart businessmen successfully disseminate ecological ideas in Europe and export linen goods woven according to ancient traditions

50 |

FOLLOWING THE OLD TRADITIONS Jonava linen textile factory “A Grupë” is well-known already to Scandinavians; residents of France and Japan take an interest in Lithuanian linen goods as well. The enterprise engaged in manufacturing linen goods mostly required for baths is the only European enterprise weaving high-quality terrycloths for rough and soft things for saunas and bathrooms, such as bathrobes, towels, sauna aprons, bathroom carpets, flip-flops and other accessories for baths.

Virginijus Vizbaras, the Director General of “A Grupë”, told that the idea of their business was offered by Swedes. Lithuania was famous for its linen industry for a long time; however, the textile enterprise is forced to import raw materials for its business.

“However, we follow the traditions. We have adapted the method of fiber flax weaving intercepted from antecedents to modern standards and technologies.

So, our production is provided with the spirit of traditional Lithuanian textile,” V. Vizbaras told.

WORKED WITH OLD MACHINES “It is not easy to find appropriate technologies in Europe, because nobody weaves fiber flax using the terry weaving method.

However, we succeeded in our search: a manufacturer from Italy agreed to adapt the available machines to our method.

In such a way, we were provided an opportunity to update our manufacturing process,” Virginijus Vizbaras, the Director General of “A Grupë” explains.

Why West Europe with its preserved textile industry and striving

to environmental-friendly production does not apply this method of fiber flax weaving? V.Vizbaras explained that this method of manufacturing takes much time. Processing of terrycloths is more complicated as compared to ordinary cloths. In Europe, only one similar enterprise in Finland exists.

“Up to now, we worked with old Russian technology adapted for our needs. However, those machines were more fit for a museum than for a modern enterprise,” the Head of the Company mentioned.

Acquisition of technologies and its adaptation were supported by the European Union as well. This year, “A Grupë” acquired new weaving machines and other technological equipment. A part of the funds was obtained by the Company according to the strategy of using EU structural support and as a measure “Lyderis LT” under the Economic Grow Action Program.

THE SUPERIORITY OF THE TECHNOLOGIES IS EVIDENT Employees of the linen factory felt the advantages of the new machines immediately. For example, the new machines enable weaving wider cloths. Earlier, we could weave cloths with the maximum

width of 1.50 m and the new machines enable to increase it up to 2.60 m.

“In addition, the new technology enables weaving various patterns. The support from the European Union helped us in updating the whole manufacturing process.

In absence of the said support, “A Grupë” would hardly adapt itself to today needs in the world,” V. Vizbaras states.

The new technology helps to ensure an improved control of yarn and to increase the productivity.

The value of the project amounts to LTL 2.5 million. The Head of the Company is glad to know that the economic recession caused falling of the price of the project.

60 percent of the price will be covered by funds of the enterprise and the remained part was allotted by the European Union.

“A Grupë” plans one more stage of modernization: the Company wishes to update textile decoration technologies and has already chosen a site for this purpose.

SELLS WITH SOAP Is investing in textile business perspective, taking into account an abundance of textile enterprise in Asia and the difficulties arising in competition with them in the aspect of the price? V. Vizbaras asserts that Lithuanian linen is very popular in Europe; our natural linen curtains, tablecloths and towels enjoy a particularly high demand.

However, our key buyer resides in Latvia. A local businessman decided to produce high-quality natural soap and offer home textile products of “A Grupë” along with it. The decision appeared to be successful and Europeans willingly buy such sets.

Scandinavians adore pleasures re| 51

lated to baths, so they were among the first buyers of production from “A Grupë”.

Lithuanian linen towels are used even in Turkey, although usually textile goods appear in Europe namely from this country.

THE FRENCH DISCOVERED THEM AS WELL “Our recent successful step was the one to France. By the way, linen for the French should be softer than usually,” the Director General of “A Grupë” says.

Today, Lithuanian linen goods for forming cosy atmosphere at home may be found at boutiques of France.

According to V. Vizbaras, the French wish to be informed by the label that the product is made in the Baltic Region, not elsewhere, for example, in China. “They know our linen industry to be of a very high level,” V. Vizbaras says.

The Poles also buy more and more textile goods for baths produced by “A Grupë”.

“In Poland, saunas are becoming popular rapidly, so the needs in sauna textile grow as well. In addition, the Poles started using linen instead of cotton; they remember their ancient linen culture as well,” V. Vizbaras explains.

In Lithuania, 10-12 percent of the total production is sold.

The economical crisis was painful for the textile industry in general; however, it affected “A Grupë” inconsiderably. “Our buyers are loyal, so they care about the healthy living upon any conditions,” V. Vizbaras says. The total staff, i.e. 65 employees, remains the same.

The name of the Company discloses history of the textile industry. It is the abbreviation of “Audëjø grupë” /The Group of Weavers/.

At the enterprise, experienced professionals having been employed for many years at Kaunas textile enterprises and residing in Jonava are engaged. In the Soviet period, Kaunas textile industry was famous in the Soviet Union. “For this reason, we 52 |

never discussed upon an idea on transfer the manufacturing to “cheaper” states.

Machines can be transferred, not professionals,” V. Vizbaras told.

SOUTHERNERS DISCOVER THE PROPERTIES OF LINEN As early as in ancient times, it was known that linen is very pleasant to wear upon a hot weather. Fiber flax absorbs moisture excellently. So, residents of South Europe duly assessed the properties of linen and buy more and more products of “A Grupë”.

Both in Spain and Italy, linen towels usable to cover beach plank-beds are very popular. Sweating is considerably reduced while lying on such a towel.

In addition, Europeans are aware that fiber flax causes no allergies and is environmental-friendly. It is one more motivation for using linen goods.

Products of “A Grupë” appear in South Korea and Japan as well. “We strive to take part in all important exhibitions for presenting our products and familiarization with products of other companies,” Head of the Company V. Vizbaras says.

climate for skin, it is recommended to use both for children and adults. So, the new series of products of “A Grupë” is targeted for children. For example, linen sheets for babies are in great demand.

The Jonava enterprise classified its goods for adults according to the needs. “Towels and bathrobes are of various roughnesses, so a buyer can choose the favorable and acceptable class of products,” V. Vizbaras explains.

Buyers of the series “Natural” prefer roughest goods, while the products of “Exclusive” line are chosen by buyers preferring soft goods. “Prestige” line collection is made of wafery linen targeted for fastidious buyers.

“Toplinen” should be preferred by lovers of the massage effect and sparing buyers.

THE MESSAGE OF “A GRUPË” TO ITS BUYERS The unique linen goods from “A grupë” intercept the ancient linen-related traditions and are produced using the modern technologies.

CARE OF THE NEEDS OF CHILDREN Linen has antiallergic properties as well.

Because of formation of the best micro-

www.agrupe.lt

| 53

UAB PLASTIC FORMO improves its results in the closest markets This year, the export of production from Kaunas UAB “Plastic Formo” engaged in making products of fiber-glass, polyethylene and polypropylene to Poland doubled, as compared to the early 2009

| L IGITA ÐOLIÛNIENË | At present, this Lithuanian enterprise involved in supplying certified products (that are already recognized abroad) to European markets actively searches partners for cooperation in neighbouring countries.

“The statistics of our sales was some unexpected also for us: 60 percent of our products are exported to our clients from Poland,” Renata Skardþiûtë, the Executive Director of UAB “Plastic Formo”, says.

The most marketable products of Kaunas 54 |

company are tanks for hazardous liquids.

The enterprise started their production five years ago at an order of a Lithuanian company having clients in neighbouring countries. This year, sales of wastewater treatment equipment in Poland increased as well.

“This year, seven of ten products of “Plastic Formo” exported to Poland are usable for storing hazardous liquids,” R. Skardþiûtë provides an example of successful coop-

eration with Polish clients.

According to her, access to the Polish market was gained at exhibitions. Farmers took a particular interest in reliable, two-layer tanks. By the way, they are encouraged to acquire such tanks for storing diesel fuel.

For the clients, it was important to avoid leakage of the stored hazardous liquids to environment. It was ensured by the technology of production of the tanks used by UAB “Plastic Formo”: if one layer of a tank

(with a capacity up to twenty cubic meters of diesel fuel) becomes permeable, the second layer keeps the liquid in the tank.

“Buyers pay attention to our Certificates, the reliability of our production and its price,” R. Skardþiûtë said.

The farmers buying large quantities of fuel and storing it in the tanks arranged in their farms had calculated: they save both money (because of discounts provided by suppliers of the fuel) and time (because of stocks of fuel for their agricultural technique in the period of abundant works).

One more advantage: the technological equipment acquired

by Kaunas company enabled it to produce 1-60 m3 tanks that are in great demand in Poland.

“One more factor having predetermined our rapid penetration to the market of the neighbouring country was existence of partners, i.e. Polish enterprises,” the Head of the enterprise says.

According to her, it would be difficult to act in the market of a foreign state without an assistant: “If you try working in a neighbouring country independently, you’ll avoid a necessity to share the profits; however, if you are not aware of the market of the neighbouring country, this step hardly would be successful”.

The Head of UAB “Plastic Formo” states that the enterprise chose more active cooperation with neighbouring countries, not pushing into distant markets: “In our sphere of activities, good employees are of a particular importance. Anybody cannot make production of plastics, polyethylene and polypropylene. All our welders were trained at German company operating in Czechia.”

Because the company plans to win a larger part of Polish market this year, the management team of UAB “Plastic Formo” decided that this plan would require knowing the language of the country they are interested in. So, the staff of this Kaunas enterprise frequents courses of Polish for several months.

Four year ago, Kaunas Chamber of Commerce, Industry and Crafts announced the laureates of the traditional contest of the most successfully operating enterprises of the region. In the said contest, UAB “Plastic Formo” was awarded with the prize “The Market Innovation 2006”. The products having gained the prize were double-wall cylindrical tanks for liquid chemicals, oil products, wastewaters and other aggressive liquids. The products were awarded with a gold medal in the contest of Lithuanian Product of the Year arranged by Lithuanian Confederation of Industrialists.

“Recognition of our key product is very important. In the year 2009, we started exporting municipal waste treatment equipment. We suppose, this product will be perspective in Polish market,” R. Skardþiûtë told.

Two thirds of production of Kaunas company are presented by products of polypropylene: they include various pools, municipal waste treatment equipment and various tanks. This year, one fifth of the turnover is presented by products of plastics, such as sinks, baths and sand tanks for fuel filling-stations.

UAB “Plastic Formo” was established 19 years ago and started its activities from plumbing equipment. At present, it produces such equipment as well because a considerable part of production of the company is in one way or another bound with construction works.

www.plasticformo.eu

| 55

Lithuanian Ad Rem is one of the largest logistics, transport and storage company groups in Lithuania. The very turnover of the expedition division of this group guaranteed the company a place among Lithuanian largest 500 companies. The Group’s activities “sail” on the three whales: international freight transportation (expedition), customs brokerage, and warehousing.

“For half a year already, we feel the recovery of cargo flow, our sails catch the wind.

We are gaining a business momentum,” DARIUS BREKYS, Director of Transportation Department in Ad Rem, with whom we talk about the trends in the transport sector says.

BiL You have participated in the World Freight Network Annual Congress in the Dominican Republic. Why did you treat seriously the invitation to participate in the forum, and what news did you bring which not only expand the horizons, but also help in everyday life?

The World Freight Network (WFN) is an organization that brings together international freight forwarding companies in all the continents of the world, it includes 89 countries and has 160 members. Only the Antarctic members are absent. Companies vary widely: from having a few to several thousand employees.

Globally, for a small logistics company such as UAB Ad Rem it is important to be an international freight network member, as this is one of the ways to gain contacts all over the world through partners in various countries. Names well-known in the world such as DHL, Panalpina, Kuehne & Nagel, SDV, and so on, populate the freight traffic map with their representative offices. The mission of this

56 |

world cargo network is to connect independent international forwarding companies which are competitive and more flexible than giant dispatcher services.

BiL Increasingly louder news come from the world that the economic recovery is over the corner? Manifestations of optimism in Lithuania are still very cautious. What impressions did you bring back after talking to forwarders in other continents?

The Registered Office of AD REM Group in Lithuania

Subjective, but the first-hand opinion on the economic situation of the last year is reflected by private business representatives from different continents and countries.

For example, Rolando Alvares from Panama (Latin America) was happy about the good previous year, he felt the economic upswing. However, Giancarlo Fernandini from Venezuela lives with other opinions.

The notorious Hugo Chavez befriends not less infamous leaders of certain states,

supporting barter exchange of labour, raw materials, military industry, distorting the historically proven economic principles.

Denny De Clerq from Belgium (Europe) was one of those entrepreneurs who named the year 2009 as “nightmarish.”

However, her company has managed not to reduce staff numbers and salaries.

True, they had a plan B, which would require working four days a week. The Belgian Government approved the business support program, which reimbursed the owner for the fifth working day in order

Participants of the annual meeting of „World Freight Network“ in Republic of Dominica

to prevent the dismissals of workers and growth of unemployment.

Tim Taylor from Chicago (USA) had a categorical opinion on the crisis: “There is no doubt that the crisis is over.” His company cooperates with Chinese, Brazilian, Indian partners. In his view, Russia is recovering as well – freight flows started moving to St.Petersburg.

Thus, reverberations of the global economic crisis are felt everywhere, but with distinctive flavours.

BiL What makes the Ad Rem Group’s competitiveness and uniqueness compared to other such companies, and how did it manage to overcome in 2009 these daunting challenges in the market?

The highest turnover is generated by Ad Rem’s transport and forwarding activities.

Our motto is: “Close to the World, Close to You.” Goods are shipped from all over the world to Lithuania, other Baltic and CIS countries. Currently, for about half of the year, we feel a large cargo recovery - let us

hope that the recession is in the past.

Other activities are customs brokerage and warehousing businesses directly dependent on the flow of goods, so a quick response to changing business circumstances and quality of management should revive these sectors. We are the largest customs brokerage firm in the country.

Like many other logistics companies operating in Lithuania, we live from the transit traffic. It is distinctly visible how the local Lithuanian market is lagging behind international trends in the economic recovery. Let’s hope this is temporary.

In our activities we are guided by the classical adage - Think Globally - Act Locally.

International activities are carried out only from Lithuanian Vilnius and Klaipëda offices. The expression is justified: we do not waste customers, maybe we sacrifice something but not the quality of service.

Who knows, maybe in the future we dare to think and act globally.

BiL Each year you, win a variety of solid business awards. Which do you consider

most significant? Is it advantageous to you for the challenging competition?

Awards are always pleasing, but it is a very relative value. In 2008, we received a nomination “The Lithuanian Logistics Company of the Year”. Of course, we are pleased, but it is important not to stay in place and see the situation in real light.

We can not sit back – we are constantly updating the business processes and financial flow accounts with the state of the-art IT technologies and use the assistance of the EU Structural Funds. Ad Rem Group employs three hundred people. I would hope that at least a majority of them are happy and our customers feel that.

www.adrem.lt

| 57

When Alytus enterprise of domestic refrigerators was being constructed in the year 1963, only 5 percent of the population of the Baltic States had refrigerators and the existing enterprises of refrigerators of the Soviet Union were not able to satisfy the increasing needs of the people for domestic technique. So, it was decided to construct an enterprise of domestic refrigerators in one of the Baltic Republics.

58 |

In the contest, Latvia having offered a refrigerator with a metal case and Lithuania having offered a refrigerator with a wooden case were involved.

The Lithuanian refrigerator was designed by Vilnius Special Design Bureau under Elfa enterprise and named „Snaigë” – this name is famous up to present time.

After the victory of Lithuania in the contest, development of Alytus enterprise was very rapid. In the same year 1963, 25 refrigerators “Snaigë1” were assembled manually.

The manufacturing process was permanently improved and automatized, so over a million of 6 models of refrigerators were produced by the year 1975.

A considerable part of the Soviet Union got to know about Lithuanian „Snaigë“ very soon. The refrigerator with the unusual name was famous for high quality, durability and reliability. In the year 1979, „Snaigë“ refrigerators were provided with the State Quality Sign.

Since the year 1983, refrigerators of „Snaigë“ brand were exported to Poland, Hungary, Bulgaria and even Cuba.

Alytus enterprise of refrigerators is one of few large enterprises that survived after the collapse of the Soviet Union and turned into a successfully operating profitable enterprise.

The key preconditions of the success of „Snaigë“ include recent technologies, modern design and flexibility in respect of changes of the market. In all times, including the Soviet period, the management team of „Snaigë“ enterprise paid a huge attention to updating the refrigerator manufacturing process and introducing recent technologies of this branch of industry, to application of environmentalfriendly standards. Professionals of „Snaigë“ visited best world exhibition of domestic technique, worked on probation at other enterprises of refrigerators. Thus, refrigerators of „Snaigë“ brand were changed and improved, the number of their models and modifications was increasing.

Today, the joint-stock company AB „Snaigë“ produces over 30 models and about 100 modifications of refrigerators.

In the year 2007, AB „Snaigë“ had carried out major updating of the manufacturing process and issued the line of refrigerators of a new design „Snaigë Ice Logic“.

In addition to the modern design, the new models of refrigerators distinguish themselves for unique refrigerating system: a special internal structure of the refrigerator enables to ensure a considerably higher energy-saving category without supplemental expenses. The annual power consumption of such a refrigerator is 31 percent less.

The only manufacturer of domestic refrigerators in the Baltic States develops and produces products that conform to the world standards, distinguish themselves for modern design and innovative technical solutions. It is a statement provided by worldwidely known Italian engineering center „AE srl – Appliance Engineering“ that confirmed high quality and excellent design of „Snaigë Ice Logic“ line.

The experts from „AE srl – Appliance Engineering“ involved in testing the new line of AB „Snaigë“ assessed „Snaigë Ice Logic“ as a model of future that will enjoy a long-term recognition.

The Italian engineering center famous for its ideas related to design of domestic technique worked with many famous manufacturers of domestic technique, such as „Electrolux“, „Whirpool“ and „Candy“.

In the year 2006, AB „Snaigë“ produced its 10 000 000-th refrigerator. At present, the enterprise produces the following products:

SNAIGË is producing 6 types of cooling equipment RF 48%

 RF

refrigerators with freezers in the lower part;

 FR

refrigerators with freezers in the upper part;

F

freezers;

C

refrigerators without freezers;

 CD

refrigerators – show cases.

FR 24%

F 15% CD 6%

C 7%

| 59

In Lithuania, this line of refrigerators won the national prizes in the categories of “The Innovative Product” and “The Innovative Enterprise”. Two models of this series were awarded with gold medals of “The Top Product of the Year” by the Lithuanian Confed-

eration of Industrialists”.

of their presentation to the market.

In Lithuania, the new line of refrigerators was favorably assessed both by experts and buyers: several models of this line remain in the list of twenty best marketable refrigerators since the date

Today, „Snaigë“ refrigerators successfully compete with production of other manufacturers from over 30 countries of the world. The company exports almost 95 percent of its production.

The sales structure of AB „Snaigë“ in 2009 according to the markets

Ukraine 11%

Russia 19%

Portugal 9%

Lithuania 5%

Other 8%

Italy 6% Germany 17% Switzerland 5% Czech 5%

About 50 percent of the production bear „Snaigë“ trademark. The other part of the production is presented by refrigerating equipment for worldwidely known brands, such as „Whirpool“, „Smeg“, „Severin“ and other West European manufacturers.

In addition, the company supplies its production to large European retail trade networks „Metro“ and „Tesco“, the largest French retail trade network „Conforama“, the largest Belgian retail trade network „Eldi“ and many other networks involved in trading in domestic technique.

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France 15%

In the beginning of the current year, the company presented the most economical refrigerators of A++ category with the minimum power consumption that meet the requirements of the top European quality standards. The refrigerators were developed by designers of AB „Snaigë“ in cooperation with scientists from Kaunas University of Technology. Because of increase of air circulation, a structure of more effective condenser was developed; for increasing the efficiency of the refrigerating system, a compressor of a new generation was used. So, the power

consumption of the newly developed refrigerator is less than the one of a 25 W light-bulb.

Only few manufacturers are involved in producing refrigerators of this top category.

In addition, the company plans construction of a new enterprise of refrigerators in Kazakhstan and increasing sales in this country as well as in neighboring markets, such as the ones of Russia, Uzbekistan, Kyrgyzstan and so on.

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HIGHWAY RAILWAY SEAWAY AIRWAY Interview with ELIGIJUS MASIULIS, Minister of Transport and Communications of the Respublic of Lithuania

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A large number of our key activities have been determined not only by strategic plans, but also by relevant issues of the country’s economic life. First and foremost, I would like to mention, in my opinion, a highly significant achievement, i.e. direct air traffic to Lithuania. It is currently better than ever before. This summer season, passengers will be able to take direct flights from all of the country’s three international airports to over 40 destinations in Western Europe and neighbouring Eastern countries. Even the years of economic boom did not see so many flights operated.

Another important strategic activity is an eventual beginning of practical implementation of the European railway track project Rail Baltica. The first reconstruction works of the railway line have already started. Rail Baltica is a real opportunity for Lithuania to strengthen its positions of a transit state, to integrate into the European transport infrastructure and not to be a backwater. The European railway track that will link us with Europe is our national interest. This is our opportunity to improve the quality of our country’s transport services, to attract more cargoes and to increase international competitiveness.

The Initiative of East-West Transport Corridor whose intensive development has already begun is also highly significant.

Last autumn, the Asia-Europe transport ministers’ meeting and business forum in Vilnius officially opened a dialogue on transport between the continents. We are continuing our cooperation with China: we aim to plan specific actions together by creating favourable conditions for carrying passengers and cargoes by land in the East-West direction and by promoting closer business ties. During a recent visit to China, we agreed to develop the Initiative of East-West Transport Corridor together with other countries: we plan to sign a five-party joint declaration among China, Lithuania, Belarus, Russia and Kazakhstan.

As far as various areas of Lithuania’s transport and communications sector are concerned, I believe that our activities are well illustrated by the fact that this sector was among the first to start recovering. The figures of the second quarter of 2009 already

Photo: G.Savickis, ELTA

BiL Please, briefly mention the key strategic activities of the Ministry headed by you.

What event do you consider to be the most significant during the period of your work in the Ministry?

The recession has shown better than any other period of time that the effectiveness of the use of state funds can be significantly increased, sais Minister E. Masiulis (right)

showed signs of recovery. During the first quarter of 2010, as compared with the same period of 2009, railway, sea and air cargo traffic considerably increased, the amount of handled cargo in the Port of Klaipëda also grew with the number of sea and air transport passengers going up as well.

BiL Linking of Lithuania and Poland with Latvia, Estonia and Finland is expected through the implementation of European railway track Rail Baltica. The project was hanging by a very thin thread when EU institutions intended to remove it from the list of priority projects. It seems that this did not happen. How is the implementation of the project that is significant to our state proceeding? When is the completion of the project forecast?

We have to admit that the project Rail Baltica was on paper for many years. However, this year will become a real breakthrough in the implementation of the project: the first real works and the reconstruction of European and wide gauge paralleled track along the Mockava–Ðeðtokai stretch already started on 10 May. An invitation has been issued to tender for a feasibility study of Ðeðtokai–Marijampolë stretch and for environmental impact assessment. The drafting of tender documents and documents concerning the purchase of

technical project development services for another stretch, Marijampolë–Kaunas, is near completion.

In addition, on the initiative of the Ministries of Transport and Communications of the Baltic States, a feasibility study of a separate railway line of European track between Kaunas and Tallinn is currently being conducted by British company Aecom Ltd. In April, the Government recognized Rail Baltica as an economic project of state significance. After the evaluation of the decision of the Lithuanian Government and developed instruments helping to speed up the implementation of the project, Siim Kallas, European Commission VicePresident and European Commissioner for Transport, also expressed his support for the Rail Baltica project. In consequence, we are making all efforts to implement Rail Baltica, one of Europe’s priority transport projects, as quickly as possible.

BiL The success of Via Baltica project is not less important to Lithuania’s business, having in mind that a large number of Lithuanian goods are transported in transit through Poland to old Member States of the European Union. How is the implementation of this project proceeding in the territory of Poland, recalling persistent protests of residents in some areas and greens? | 63

through Bialystok. We expect to soon hear specific news about the process of implementation of this project.

BiL Dredging works in the water area of Klaipëda Port are underway. When is their completion expected? How will this affect the operation of the Port and also our state’s economy?

This year, as a result of long-running legal disputes with the company that was supposed to carry out the works, dredging works in the Port are not being conducted. However, boulders are now being removed from the water area dredged. Moreover, the canal of

The Port of Klaipëda reloads about 30 million tons of cargo annually

Reconstruction works of the Rail Baltica

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Foto D.Labutis ELTA

Last October, the Polish Government endorsed modifications to Poland’s network of highways and motorways by establishing the optimal route for the road Via Baltica in its country’s territory. The Augustow bypass which has generated many discussions will be built along the route newly chosen by experts, which will go around the Rospuda Valley, a part of Natura 2000, an ecological network of protected areas. A new Via Baltica route will run from the Lithuanian-Polish border through Suwalki, Elk and Lomza to Warsaw. This is good new for Lithuanian drivers, since, according to specialists, this route will be approximately 30 km shorter than the current one running

Minister of Transport and Communications of Lithuania E. Masiulis and Minister of Transport of China Li Shenglin started intensive dialogue on development of the Initiative of East-West Transport Corridor

the mouth is being cleaned quickly.

Widening of the canal of the mouth in seven places is foreseen. A technical project for improving the canal of the mouth is currently under development. The works which will increase safety in the Port and contribute to the widening of the canal are scheduled to begin during the third quarter of 2010 and end in 2011.

The improvement works of the canal of the mouth will be followed by the next stage: dredging and widening of the canal of the Port mouth. In the course of the dredging works, the canal of the mouth will be widened up to 150 m as far as quays No.97100, while the depth of the current canal of the mouth from quay No.10 to quay No.104 will be increased from 13.0 m to 14.5 m. An estimated volume of these works is between 2.5 and 3.0 million cubic metres. The beginning of the dredging works is scheduled for 2012.

The Lithuanian Energy Institute has also developed a Programme for the Dredging of Klaipëda State Seaport Water Area until 2015. Financial support from the European Union is sought for the implementation of the Programme.

The Port of Klaipëda is one of the key objects of transport system in Lithuania. Over 800 Lithuanian enterprises and companies which employ more than 23,000 people and create 4.5 percent of Lithuania’s GDP are related to its operation. Thanks to the Port, a total of 185,000 jobs are created in Lithuania. The Port of Klaipëda is directly or indirectly linked to 18 percent of the total GDP created in Lithuania.

Currently, the Port of Klaipëda reloads about 30 million tons of cargo annually: a calculation shows that if, on average, a ton of cargo generates an income of 45

litas, the amount of handled cargo at the Port in terms of money makes up approximately 1.4 billion litas.

In order to increase a cargo turnover, we have to expand the Port’s capacity. The Port will earn more, if more and larger vessels carrying more and more expensive cargoes enter Klaipëda. So as to receive more vessels and more cargoes carried by them, it is necessary to dredge and clean the canal and the bottom of the Port mouth close to the quays. These works are even more important, taking into consideration a global tendency for vessel sizes to increase.

Consequently, the navigation market is undergoing changes and ports must respond to them accordingly in order to remain competitive.

BiL Funding for roads and their infrastructure has been considerably cut this year. Lithuania has a fairly well developed and administered network of roads.

What areas, in your opinion, categorically

cannot be “harmed” and what areas will still have to be affected under the current conditions of economic decline?

None of the areas can be “harmed” and the recession has shown better than any other period of time that, under the present conditions, the effectiveness of the use of funds can be significantly increased, i.e. for fewer funds the same can be done or maybe even more and, of course, the quality can be achieved.

Actually, as funding from the budget for the road infrastructure and maintenance was cut, we undertook significant reforms in the system: saving, improvements in management, the search for and pooling of internal resources helped to seek higher efficiency.

On the other hand, realizing that the economic recession offers the state a unique chance to renew public infrastructure at lower costs and investment in the infrastructure acts as a stimulus to the country’s economy, we reviewed the plans for

This summer season, passengers will be able to take direct flights from all of the country’s three international airports to over 40 destinations in Western Europe and neighbouring Eastern countries

...Rail Baltica ... this year will become a real breakthrough in the implementation of the project: the first real works and the reconstruction of European and wide gauge paralleled track along the Mockava–Ðeðtokai stretch already started on 10 May.

A new Via Baltica route will run from the LithuanianPolish border through Suwalki, Elk and Lomza to Warsaw

The works which will increase safety in the Klaipëda Port and contribute to the widening of the canal are scheduled to begin during the third quarter of 2010 and end in 2011.

the use of European Union support. We mitigated the consequences of the reduction in funding for the Programme for Road Maintenance and Development by allocating the largest possible share of EU support to road infrastructure projects in 2009. As a result, we transferred over 1.06 billion litas to enterprises in the transport sector from coordinated EU support funds in 2009. This money reached the country’s manufacturing companies, suppliers of materials and employees. People and business enterprises in Lithuania use these funds for their investment or purchases. A fair amount of this money returned to the budgets of the state, municipalities and the State Social Insurance Fund Board (“Sodra”) in the form of contributions or taxes.

BiL When you started to head the Ministry, Vilnius International Airport began to operate new regular flights which are necessary for residents. Although a new flight timetable for the summer season has been approved, there are hints that some companies intend to withdraw from business due to a sharp decline in numbers of passengers. What do you think, is it possible to continue operating flights to key destinations and what are the plans to improve the organization of Airport operation, in particular, as the tourist summer season is approaching?

This year, the number of passengers in Vilnius International Airport has not dropped and is growing. However, the number of flights is increasing far more rapidly than that of passengers; therefore, an average planeload of passengers is decreasing. Vilnius has no plans to suspend any flights to any destinations, just some corrections are being made to the flight timetable by increasing the number of flights to one destination and reducing to another, thus responding to demand and sales.

Now that the travel market has slumped all over the world, it is necessary to take the greatest possible advantage of existing flight opportunities and, through joint efforts of public authorities and business, to promote incoming tourism to Lithuania.

We raise this issue by ourselves and encourage collaboration among institutions.

I believe that our country needs to very seriously undertake a review of the tourism strategy, to eventually decide what makes us exceptional and what can make us interesting to the world, and to take urgent decisions. | 65

The first reconstruction works of the Rail Baltica, European railway line, have started

„Rail Baltica“ is the first real project on railway transport development on the eastern seaside of the Baltic Sea intended for settlement of very important problems bound with increasing flows of cargoes in the north-south direction using railways, i.e. the most economical and environmentfriendly transport, for this purpose. This European railway track will directly connect Warsaw, Kaunas, Riga and Tallinn. On 10 May, Minister of Transport and Communications Eligijus Masiulis officially announced about starting the railway construction works in the segment Ðeðtokai – Mockava. The value of the project amounts to EUR 3.93 billion and its goals include a facilitation of the economic and social development of the state as well as ensuring free movement of people, services and goods 66 |

Photos: Gediminas Miðkinis

THE EUROPEAN RAILWAY TRACK – the interest of the national scale

Minister E. Masiulis pushes the button to start the reconstruction works of the Rail Baltica

In the solemn ceremony of starting the construction works, members of the Seimas and the Government of Republic of Lithuania, high-ranking visitors from Lithuania and EU Member States interested in successful implementation of „Rail Baltica“ project, the Management Team of AB „Lietuvos geleþinkeliai“ and other persons directly bound with implementation of the project were presented.

Minister of Transport and Communications Eligijus Masiulis noted that „Rail Baltica“ is a real opportunity to strengthen the position of Lithuania as a transit state, to in-

Pavel Telièka, EC “Rail Baltica” Project Coordinator, felicitates on the start

tegrate it in the European transport infrastructure and to get rid of the label of a back-country. „The European railway track for connecting us with Europe is the interest of the national scale. It is our chance to improve the quality of the national transport services, to attract more cargoes, and to strengthen our international competitiveness. Finally, we’ll use this chance,” the Minister said.

FROM THE PLANS – TO THE WORKS The started reconstruction works are the first stage of implementing the project (that existed only on paper for many years); the European track railway will be helpful in strengthening logistics business positions in the center of Lithuania. Close to Kaunas, a public logistics center will be established.

According to Director General of „Lietuvos geleþinkeliai“ Stasys Dailydka, on the first stage of implementing the project, important transport corridors, such as East-West, „Rail Baltica“, „Via Baltica“, and skyways crossing in the most important intermodal Public Logistics Center in Kaunas will be jointed. „Rail Baltica“ will

ensure an opportunity of comfort, safe and well-timed getting to cultural objects as well as to industrial, business and tourism centers of the Baltic States and West Europe within the shortest time.

The first decisions on integration of Lithuanian railways in the railway network of the Central and West Europe were passed in the year 1993. In the year 1997, III Conference of European Ministers of Transport in Helsinki recognized the North-South transport corridor No. 1 being the one of European priority. On 29 April 2004, the European Parliament and European Coun-

CEO of “Lietuvos geleþinkeliai“ Stasys Dailydka invites to begin building the first segment of the European track

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cil approved the list of underlying transport projects. In this list, the joint project of Poland, Lithuania, Latvia and Estonia „Rail Baltica“ is the 27th. Some later, the position of the project in the said list of priority fluctuated; however, the project remained in the list. On 7 July 2009, the Transport Investments Directorate and „Lietuvos geleþinkeliai“ signed an agreement on distributing the functions; according to the Agreement, AB “Lietuvos geleþinkeliai” became the project manager.

On 7 April of the current year, the Government recognized „Rail Baltica“ as an important project for the national economy.

It is supposable that this decision will enable settling problems of the project implementing more efficiently, thus increasing the competitiveness of this railway line and the whole state in the regional and world markets.

Taking into account the decision of Lithuanian Government and the developed measures for rapid implementing of the project, Vice-president of the European Commission, Transport Commissar Siim Kallas expressed his assent to project „Rail Baltica“.

The works carried out in Poland: - Feasibility study - Assessment of environmental impact

All works under the project „Rail Baltica“ are carried out following the resolution of the Government of Republic of Lithuania “On the plan of the immediate actions to be carried out on implementing project „Rail Baltica““, as of 23 December of the last year. The plan includes a proposal of building the European track (1435 mm wide) along the existing wide track (1520 mm wide) and where it is impossible, a parallel European track should be built.

COMPLETION OF THE CONSTRUCTION WORKS – IN THE YEAR 2013 The construction works on the segment Ðeðtokai – Mockava are carried out by UAB „Geleþinkelio tiesimo centras“ under the contract concluded with AB „Lietuvos geleþinkeliai“. The said company will carry out works distributed to seven groups (land works, construction of upper structure of the track, making of provisional crossings, water offtake, repairs of crossings, and works related to elements of buildings). Simultaneously, three bridges will be reconstructed.

According to the Director General of AB „Lietuvos geleþinkeliai“, citizens of Lithuania and other EU Member States have heard that „Rail Baltica“ is a hardly startable and more hardly implementable project

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for a long period. So, it was very pleasant to deny such opinion by announcing the started construction works.

passengers and cargoes should be developed and close cooperation with other transport sectors should be improved.“

According to S. Dailydka, executor of the project AB „Lietuvos geleþinkeliai“ assumed very important task bound with further development of the national railway network thus enabling the railway system to offer new effective decisions in logistics.

The value of the works on constructing the railway of the European standard „Rail Baltica“ uniting Warsaw, Kaunas, Riga, Tallinn and Helsinki in the national section The Poland-Lithuania frontier Ðeðtokai-Marijampolë-Kaunas amounts to about 850 million Litas. Completion of the construction works of the said section is planned in December 2013.

„For effective activities of „Rail Baltica“, building of the new tracks and integration in the transport market of European Union are not sufficient measures,” S. Dailydka says. “A total system that would ensure appropriate flows of passengers and cargoes and attract private funds must be formed.

For this purpose, public logistics centers should be established, transportation of

www.litrail.lt

CLOSE LONG-TERM COOPERATION ASSOCIATING GARIÛNAI BUSINESS PARK WITH POLISH ENTREPRENEURS We won ‘t be wrong if we say that the Poles gave us the first lessons of market economy.

Poland, different1y from Lithuania, has considerably longer traditions of small business. Private property and small business in Poland were promoted already under the soviet ideology. During the period of mass deficit, the Poles succeeded in expanding production of their light industry and sector of services. High employment level and respect and attention to business on the part of society are the factors which have helped Poland to cope with current economic recession.

Gariûnai were set up in Lithuania 20 years ago as the first laboratory of capitalism and the Poles were among the first to start their activities here.

Gariûnai have always operated according to the rules of market economy. The great majority of entrepreneurs started their business here.

Today the traders of Gariûnai marketplace are purchasing footwear, light industry articles and foodstuffs in Poland.

Goods purchased by the Poles in Gariûnai include used cars, Lithuanian needlework, knitwear and amber articles. Amber articles manufactured in Kretinga, Tauragë and Palanga are very popular in Poland and Germany.

The Poles realise amber in their own country and export further - to Europe. Lithuanian needlework and knitwear of good quality successfully compete with local industry products in Poland.

Successful long-term integration of the Lithuanian and Polish business into the markets of neighbouring countries foster good crossborder relationships as well as economic and cultural cooperation.

www.gariunai.lt

Honorary Consuls: Advocates of Lithuania’s Interests in the World On 14-16 July this year, Honorary Consuls from all over the world are expected to arrive in Vilnius for the fourth Convention of Honorary Consuls of Lithuania.

The Convention has been held every three years since 2001. We talk to ÐARÛNAS ADOMAVIÈIUS, Lithuania’s Vice-Minister for Foreign Affairs, about Honorary Consuls and the forthcoming Convention Lithuania’s Vice-Minister of Foreign Affairs Ðarûnas Adomavièius

BiL Can we say that Lithuania has already completed creating its network of Honorary Consuls? Is the country adequately represented in all parts of the world?

This year we are celebrating the twentieth anniversary of the reestablishment of Lithuania’s independence, statehood and its diplomatic service and we are commemorating the 600th anniversary of the battle of Grunwald.

Thinking back to the history of Lithuanian statehood, I would like to mention the first Honorary Consuls of independent Lithuania, Vytautas Èekanauskas and Vaclovas Kleiza from the USA (they were

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appointed by the Lithuanian government in exile), Leon Bodd in Norway, Algis Kabaila in Australia, Haris Lapas in Canada, Algimantas Rastauskas in Argentina, Karl Rothenberger in Germany, and Vicente Alejandro Z. Araneta in the Philippines. We appreciate very much their support and help at a time when Lithuania was taking its first steps as a re-established independent state, and was struggling to find its place again in the international community.

Today, 166 Honorary Consuls represent Lithuania on all the continents. This is a great achievement for us, because Honorary Consuls are an important means for implementing our foreign policy.

We have the most Honorary Consuls in the USA, a total of sixteen,

Lithuania’s Honorary Consul Felizardo Figueroa rendered to the victims of the earthquake in Chile humanitarian aid worth 20 000 US dollars on behalf of the Lithuanian Honorary Consulate

but they are most densely distributed in Europe. In Italy, we have nine Honorary Consuls, in Germany, Denmark, Poland, Sweden six each, in United Kingdom, France, Finland, Ukraine, and Norway five each. We have also appointed Honorary Consuls as far afield as the countries of Latin America, Asia and Oceania, Near East and Africa. We establish consulates in states where we have no diplomatic representation, where Lithuanians have economic interests, where large Lithuanian communities live, and in places that are popular with Lithuanian tourists.

Our priority is to expand the network of Honorary Consuls in the world, concentrating on those regions where we do not have embassies.

BiL How can Honorary Consuls help the country? Is it not just a symbolic title conferred upon foreigners for exceptional service to Lithuania?

Honorary Consuls contribute to fostering bilateral political, economic and cultural relations between states, and help Lithuanians who get into trouble, especially in countries where there is no Lithuanian Embassy. They promote Lithuania as a tourist destination, and contribute greatly to organising student exchange, business missions, official visits and events representing the country.

For several years already, Baron Wolfgang von Stetten, the Honorary Consul in Germany, a former Chairman of the German Bundestag Parliamentary Group for Relations with the Baltic States, has been organising exhibitions and concerts to present Lithuanian culture and art to the German public. He pays great attention to charitable projects, and co-operates closely with the town of Kelmë. He has been awarded the title of Honorary Citizen of the town for the support he provides to the residents of Kelmë and to non-governmental organisations.

I am happy that Honorary Consuls have responded to our appeal to initiate the renaming of streets in cities in foreign countries in honour of Lithuania. Today with the assistance of Lilia Fortunato, the Honorary Consul in Italy, it is possible to walk along a street named after Lithuania in the Italian town of Bari. I hope that this example will encourage other Honorary Consuls to contribute to the initiative.

I would also like to mention Wilhelm Brouwer, the Honorary General Consul in the Dominican Republic, Sergio Nunes, the Honorary Consul in Argentina, Ricardo Blagevich in Brazil, Felizardo Figueroa in Chile, Nawar Sukkar in Syria and many others who do a lot for the good of Lithuania.

We must not forget Honorary Consuls who foster the country’s culture in states where large Lithuanian communities live: Argentina, Australia, Canada, the USA, and Uruguay.

BiL Who finances the activities of Honorary Consuls? How much does the maintenance of the whole network of Honorary Consuls cost?

Honorary Consuls finance their activities and maintain their offices at their own expense. When appointing an Honorary Consul, the Ministry of Foreign Affairs evaluates his or her possibilities to represent Lithuania, to organise state festivals, presentations of culture and business, and to fulfil other functions.

Lithuania’s Ministry of Foreign Affairs provides Honorary Consuls with information and promotion materials about Lithuania.

BiL What requirements are there for Honorary Consuls?

First of all, an Honorary Consul must be determined to work for the good of Lithuania, to have a vision of how to promote economic, trade and cultural co-operation, and to develop and encourage tourism and scientific exchanges. He or she must have an impeccable reputation and outstanding organisational and diplomatic abilities.

Lithuanian diplomatic representations and the Ministry of Foreign Affairs coordinate the activities of Honorary Consuls. Every three years a Convention of Honorary Consuls is convened, during which the main objectives in economic, cultural, tourism and other spheres are discussed. Not only Lithuanian diplomats but also representatives of other state institutions, business and culture can cooperate directly with Honorary Consuls, become acquainted with the results of their activities, help them to better understand current issues, and discuss common projects.

BiL Can Honorary Consuls, at least partly, compensate for the reduced capacities of the Lithuanian diplomatic service during the economic crisis?

We hope that with Lithuania going through a difficult economic year, Honorary Consuls will contribute to encouraging the revival of the economy and help to attract new investment into Lithuania. The development of business relations with other countries can help us to overcome the economic difficulties faster.

I would like to mention Gerrit Zandsteeg, the Honorary Consul in the Netherlands, who is especially effective in the economic sphere: he has established the Centre to Encourage Trade with the Baltic

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States, which not only helps to present the region’s potential to draw the Baltic States into the network of trading partners of the Netherlands, but also conducts consultations for companies that are interested in relations with Lithuania. Last year Gerrit Zandsteeg, together with Herman de Lange, another Lithuanian Honorary Consul in the Netherlands, organised the presentation “How to do Business in the Baltics” which received a great deal of attention.

Honorary Consuls in Finland, Israel, Italy, Jordan, Poland, South Africa, Syria, the USA, and other countries work in the sphere of economic diplomacy and develop bilateral relations with Lithuania.

When promoting Lithuania’s name at cultural events, Honorary Consuls help to save diplomatic representations abroad a lot of financial and organisational resources. Last year, when commemorating the millennium of the first mention of Lithuania’s name, the Foundation of Michel Sogny, the Honorary Consul in Switzerland, supported a concert given by young pianists at the Lithuanian National Philharmonic Hall, where four talented Lithuanian pianists performed. Through the efforts of the Foundation, the concert was broadcast live by the international cable television music channel Mezzo to thirty-nine countries, and the cable television news channel Euronews broadcast reports about the concert, about Lithuania, and about Vilnius as European Capital of Culture.

BiL What issues will be discussed at the Convention of Honorary Consuls?

The Convention of Honorary Consuls will address the most important issues in Lithuanian foreign policy, such as economic diplomacy and the encouragement of economic co-operation with other countries, the development of tourism, questions of Lithuanians living abroad and consular assistance to citizens of Lithuania, the presentation of Lithuania’s culture to the world, public diplomacy, the development of scientific exchanges, and closer cooperation between universities.

The Convention will include visits by Honorary Consuls to different regions of Lithuania, where they will be able to learn about the most progressive companies, and export and investment possibilities. We are glad that regional municipalities and companies in Lithuania have

shown an interest in the possibility to introduce themselves to the Honorary Consuls, establish direct relations, find business partners and investors, and co-operate in culture, education and the arts.

It is highly symbolic that we will host Honorary Consuls in Vilnius on July 15, on the day when Lithuania will commemorate the 600th anniversary of the battle of Grunwald.

BiL How many Honorary Consuls are expected to take part in the Convention? What are the most distant countries they will come from?

We are expecting about a hundred Honorary Consuls from almost all the states in which Lithuania is represented. The most distant countries are Argentina, Brazil, Chile, Peru, Uruguay, Mexico, the Dominican Republic, Jamaica, Kyrgyzstan, Hong Kong, Singapore, South Korea, Sri Lanka, Nigeria and South Africa.

BiL Can Honorary Consuls help ordinary Lithuanian citizens who get into trouble where there is no Lithuanian diplomatic or consular representation nearby?

One of the main and most important functions of Honorary Consuls has always been to provide consular assistance to Lithuanian citizens abroad when they get into trouble or fall ill.

Honorary Consuls help citizens to get in touch with members of their family and the Lithuanian diplomatic representation, they act as intermediaries with law enforcement institutions, and they provide information about the possibilities to appeal for help to government and non-governmental organisations in the country where they are.

The assistance of Honorary Consuls is essential in Latin America, a continent where there is only one Lithuanian Embassy, in Buenos Aires. Our Honorary Consuls there, Judith Blacher Walker in Ecuador, Eduardo Paðkevièius in Peru, Borisas Petrusevièius in Venezuela, Laima Grigaliûnas de Didþiulis in Columbia, and many others willingly provide consular assistance to citizens of Lithuania in Latin America.

I would like to take this opportunity to express my sincere gratitude to the Honorary Consuls for the work they do for Lithuania and its people.

Lithuania’s Honorary Consul in Switzerland Michel Sogny and talented young Lithuanian pianists

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Lithuania’s Honorary Consuls around the world

Lithuania’s Defence: From Sword to Missile

Traditional ceremony of raising the flag of the Republic of Lithuania on Gediminas Castle Tower on 1 January 74 |

T

he modern world map depicts Lithuania as a modest-sized territory bordering the Baltic Sea, but the history of the country dates back to ancient times. Last year, the millenium of the first reference to the name of Lithuania in the historical annals was celebrated. This year, the Lithuanians are commemorating the 600th anniversary of the famous Battle of Grunwald. According to the historians, the Battle of Grunwald, which took place in 1410 in the territory of present-day Poland between the Teutonic Order and the Lithuanian-Polish Army under the command of the Grand Duke of Lithuania, Vytautas, was one of the largest battles in the Middle Ages by number of troops engaged. From the perspective of Lithuanian history, this battle marked the victory against the Teutonic Order, the wars with which raged for nearly 200 years, and the recovery of Þemaitija (Samogitia); hence the western border of Lithuania remained firm for the next 500 years. This battle has etched itself into the historical consciousness of Poles, Lithuanians, Germans, Belorussians, Ukrainians, Russians, Moldavians and Czechs.

Moreover, the times of the Grand Duke Vytautas the Great designate the starting point of the process of Lithuania’s integration into Europe. This process would have been impossible without the victory in the Battle of Grunwald. Due to its triumph, Lithuania has become the subject of European civilization, it has preserved its identity and has been continuing its journey on Planet Earth alongside the modern world.

Nearly all historians agree that the Battle of Grunwald can be considered the greatest victory of the Lithuanian weapon achieved by the genius of warfare, the Grand Duke of Lithuania, Vytautas. They also admit that this battle would not have been won without the union with Poland which enabled the armed forces of the two states to pool their efforts. It was Jogaila, the King of Poland, and the Supreme Duke of Lithuania, who brought the heavy cavalry of Poland to the battle. It was a decisive battle: the Order’s Grand Master Ulrich von Jungingen, other commanders and more than 200 knights fell in this battle, to say nothing of their servants. Similarly, the united army of the Grand Duchy of Lithuania and the Kingdom of Poland suffered dramatic losses: only half of the soldiers came back from the battle. Nevertheless, the battle was won.

Strong and merciless sword strokes of Lithuanian soldiers drew boundary lines between different nations for many centuries.

Old cultural and historical roots notwithstanding, Lithuania is celebrating its 20th Anniversary of the Reestablishment of Independence this year. Large differences between these two state anniversaries in terms of years and dramatically changing state borders show that the nation of Lithuania has seen both significant rises and severe losses. Nevertheless, the Lithuanians have always fought for their freedom as Lithuania is the nation of brave and freedom-loving people. Modern technologies have incredibly distanced from agricultural forms of living, yet Lithuanian national identity is founded on its history which has always had freedom fighters determined to defend their motherland against external enemies, such as crusaders, czar’s troops, Bolsheviks and the Soviet NKVD. It has been six years since Lithuania’s accession to NATO. It is a very important event in the state’s defence policy. In a short period of time, the Lithuanian Armed Forces have become | 75

modern, mobile and professional and have since been interacting well with other allies to ensure international security.

Today, the same as 600 years ago, Lithuania has a good strategic partner – Poland. In 1993, the Republic of Poland accredited the first Defence Attaché, and two years later, the first Defence Attaché of Lithuania to Poland was accredited.

When the neighbour state became a full NATO member, relations between Lithuania and Poland in the field of military cooperation moved to a qualitatively new level. In 2001, the states signed an intergovernmental agreement concerning cooperation in the field of defence, which revealed relevant issues in security policy then: Poland’s membership in NATO and its support to Lithuania in pursuit of NATO membership.

It was in 1997 when Lithuania and Poland signed an agreement concerning the establishment and formation of a joint military unit – LITPOLBAT – to maintain and restore international security and peace. It was the only military unit of the Republic of Lithuania and a NATO member state until Lithuania’s accession to NATO. Lithuanian troops have participated in the NATO-led KFOR operation within the Polish-Ukrainian Battalion in Kosovo for ten years. For almost five years, the

Lithuanian Detachment (LITDET) was deployed to Iraq under Polish command (in Polish AOR, in the city of Al Hillah which is about 100 km far to the south from the Iraq capital, Baghdad). Furthermore, the NATO North-East corps is located in Shchecin, Poland. The corps was established in 1999 by Denmark, Poland and Germany to help the Polish comprehend the NATO procedures more swiftly. This headquarters has also become a “simulator hall” for the Lithuanian military officers who have been using the opportunity to deepen their knowledge by studying military management and decision-making process since 2002. Currently, representatives of twelve states (officers and sergeants from the Czech Republic, Poland, Denmark, Estonia, Germany, Latvia, Lithuania, Romania, Slovakia, Slovenia and the US) are serving in this headquarters.

As the EU military capabilities had been strengthened by pooling them, a Letter of Intent concerning the creation of LITPOLUKRBRIG was signed in 2009. Currently, the EU combat group of Polish, German, Lithuanian, Slovak and Latvian troops is on standby, and, if necessary, can be operatively deployed to the conflict zone or the zone of increasing threat.

A fragment of the Battle of Grunwald scenes and the appearance of the personage of the Lithuanian Grand Duke Vytautas 76 |

In spring 2010, the Polish contingent arrived at the Zokniai air base to carry out the Baltic air-policing mission for the third time. Besides, Lithuania and Poland have been closely cooperating and discussing all the issues on NATO and EU agendas: they coordinate their positions and exchange information concerning the Strategic Concept, antimissile defence, relations with NATO partners, NATO reforms and international operations. This fruitful and meaningful partnership between the two states in the field of defence will be crowned this summer during the commemoration of the 600th anniversary of the Battle of Grunwald. On this occassion, the pageant of the Great Battle will be held in Poland. For the first time, the Lithuanian delegation will include the personage of the legendary Duke of Lithuania, Vytautas. This character will be played by the Lithuanian officer, Cpt. Donatas Mazurkevièius.

Duke Vytautas made his first apperance and the “encounter” of his knights with the enemy was first performed during the celebration of Partisan Commemoration and the Army and Society Solidarity Day in May this year. The commemoration of this day is annually organized by the Ministry of National Defence of Lithuania.

The Minister of National Defence of Lithuania Rasa Juknevièienë believes that Lithuania’s security issues are of paramount importance in Lithuania’a political life, for without strong defence foundations other things become fragile. It should be noted that apart from being a NATO member, Lithuania has developed amiable bilateral relations with Denmark, Great Britain, and the US, and this communication is further enhanced during working visits abroad. When summarizing her successful visit to the US this spring, the Minister of National Defence of Lithuania Rasa Juknevièienë said: “I am glad I managed to meet with all the most important representatives of the US leadership of defence and to get clear answers to the questions I had. From a political viewpoint, the meetings with both Gen. Jones L. Jones, the Senior Advisor to the [US] President, and Defence Secretary Robert Gates were very successful and beneficial because it was clearly stated that the United States of America has not deflected its attention from Lithuania and has not lost its interest in Central Europe. During this visit, I became sure that Americans are benevolent and open for cooperation and take interest in the defence issues of Central Europe

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During the exercises, the Lithuanian Armed Forces use armoured vehicles M113

and the Baltic region. The US leadership is inclined to discuss its plans and intentions in the field of international security beforehand and is ready to hear out the positions of individual states.” According to Mrs. Juknevièienë, during all the visits, she could feel that the representatives of the US leadership would like Lithuania, and the whole Baltic region, to closely cooperate with Central Europe and Nordic States in all fields, especially, in the field of defence, and to integrate into the community of Central Europe and Nordic Countries. “Another important point is that we have to clearly define our strategic and defence interests here, in Lithuania, and we have to know

Defile of the Lithuanian honour guard soldiers

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what we are aiming at and to coherently move towards this direction. Nobody will do our “homework” for us. I am glad that the US will further support the Baltic air-policing mission until 2018 or longer, that the leadership of the Pensilvania National Guard will help us establish police operation training and liaison team in the province of Ghowr, and that they are ready to participate in the joint NATO exercise to be held in Lithuania,” the Minister said. “Each day, Lithuania is becoming more integrated into the security environment of NATO states and is a safe country to live in, run and develop a business and make beautiful things.”

Lithuanian troops are ready for defence of the country

Military tactics has to keep in step with developments as times change. 600 years ago, in the Battle of Grunwald, a warrior would see armed knights on their horses coming together with their armed servants holding shimmering swords. Today, we would first see the knights of the air scraping the sky. In order to evade them and to fight them, the Lithuanian Armed Forces have acquired the antimissile system Stringer, the purpose of which is to defend the theatre of operations and important objects from air attacks and to eliminate low flying helicopters, transport airplanes and fighters. The renewal of antiaicraftand antitank- weapons, sufficient reserves and air surveillance

systems are among the priorities for strengthening Lithuanian defence capabilities given by the leadership of the Ministry of National Defence of Lithuania and of the Lithuanian Armed Forces.

The Commander of the Lithuanian Armed Forces, Gen. Maj. Arvydas Pocius, is proud of Lithuanian troops who carry out their military tasks in international missions in a professional manner and are highly evaluated by their counterparts and the commanders of NATO HQs. “In my view, people are the basis of the army; and military training, pragmatic but non-standard way of thinking, initiative and profound knowledge in military subjects are the values contributing to the successful operation of the army,� the chief of defence said.

At the moment, over 15 000 military and civil personnel are serving in the Lithuanian Armed Forces. However, in order to defend our motherland, that is not enough. Therefore, the current leaders of the Lithuanian Armed Forces focus their attention on the military reserve. In addition to properly manned and professionally trained personnel, modern weaponry is needed, hence the Lithuanian Armed Forces have been gradually supplementing their arsenal with modern equipment: weapons of infantrymen and means of transport have been renewed, there have been considerable investments in naval and air transport capabilities. Step by step, the leadership of the Ministry of National Defence and the Lithuanian Armed Forces approach their aim to have professional, motivated, modern and well-trained forces capable of operating effectively both in their national and NATO territory, and supported by adequate and professional reserve.

www.kam.lt

A soldier of the Lithuanian Armed Forces wearing the outfit of a 14th century guard

www.lietuvoskariuomene.lt

PROJECT IS SPONSORED BY

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While cherishing long-year traditions, LITHUANIAN UNIVERSITY OF AGRICULTURE combines science, business and innovations

Lithuanian University of Agriculture (LUA), a full right member and a partner of equal value of the family of European universities, is involved in its activities for almost ninety years. It is an internationally recognized higher school engaged in biomedicine, technology and social sciences as well as studies in rural development, where cherished traditions and the modern attitude are combined.

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Prof. Habil. Dr. ROMUALDAS DELTUVAS, Rector of Lithuanian University of Agriculture

Photos: from Archives of Lithuanian University of Agriculture

The base of this higher school was Dotnuva Agricultural Academy appeared on the restructurization of the Agronomy – Forestry Department of Lithuanian University (in Kaunas) and Dotnuva Agricultural College. The Academy grew and consolidated; it was finally formed after its settlement in Noreikiðkës (Kaunas District) Academy Campus. After the escape of Lithuania from the grip of the Soviet system and restoration of its statehood, wide-scale systematic restructurization took place in Republic of Lithuania and finally opportunities for contacts with European universities appeared. The community of the Academy decided to change the name of the higher school and Lithuanian Agricultural Academy was named Lithuanian University of Agriculture according to the resolution of Seimas of Republic of Lithuania, as of 08 October 1996.

STUDIES ARE COMBINED WITH PRACTICE LUA is the only state higher school and scientific institution involved in training rural development professionals in Lithuania.

The University provides all levels of studies in biomedicine, technology and social sciences directly related to rural development and administration, agriculture, water management and forestry, sparing use of natural resources in the agrarian environment.

At present, LUA includes 5 faculties - Agronomy, Economics and Management, Forestry and Ecology, Water and Land Management, and Agricultural Engineering; 3 scientific and studies’ institutes

– the Institute of Environment, the Institute of Studies in Fundamental Sciences and the Institute of Rural Culture; 2 scientific institutes: the Agroengineering and Water Research institutes. The University is situated in 716 ha territory where 5 buildings for studies (with 40 auditoriums, 42 school-rooms, 80 laboratories, and a library), the experimental station, the training farm, the campus and the settlement for lecturers are situated.

At LUA, high qualification pedagogues and scientists are engaged – total over 350 pedagogues, including 250 professors and associated professors. Annually, over 1200 high qualification professionals in agriculture, forestry and water management graduate from the University. At present, about 6500 potential specialists in rural development and doctoral students are involved in studies.

A successful employment of LUA graduates is predetermined by combination of scientific activities and studies with practice. This higher school cultivates close contacts with abundant joint-stock companies, such as „Rovaltra“, „Lytagra“, „DeLaval“, „Dotnuvos projektai“, „Arvi ir Ko“, „Agrochema“, „Dojus Agro“, AB „Kemira GrowHow“ and so on. Probably, because of this, the overall majority of its graduates do the jobs they were trained for.

According to Alfonsas Tamoðiûnas, the Vice-president of ARVI group of enterprises that is involved in its activities for 20 years, only enterprises keeping in step with new technologies and scientific achievements were able to survive such a long period, overcoming all crises and difficulties of the hard times. The activities of the Company are miscellaneous and its market is not restricted only to Lithuania. Because of this, upon competition

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with other manufacturers, permanent investments in renovations are required. „We should gallop ahead, not simply run,” the talker figuratively explains. So, the Company uses assistance of higher schools, including Lithuanian University of Agriculture. In addition to using the knowledge provided by the University and its scientific achievements, the Company provides a financial support for the activities of this higher school.

INNOVATIVE ACTIVITIES; RELATIONS WITH FOREIGN PARTNERS The University cooperates with over 50 higher schools of foreign states, takes part in the activities of EU “LLP/Erasmus”, networks NOVA and BOVA of agricultural universities of the Nordic and the Baltic States, the Seventh Joint Research Programme as well as other programmes and international scientific projects supported by international funds and governments of foreign states.

In the exchange programmes, about 20 lecturers and about 60 students that go to 16–18 universities of EU Member States are involved annually. About 12–15 students and 10–15 lecturers come annually to LUA from Germany, Spain, Austria, Czechia, France, and Greece.

Cooperation in the sphere of studies increases the international prestige of the University, assists to improve study programmes, encourages improvement of qualification of the academic personnel, and increases a diversity of language skills.

Thanks to the various activities of the University, its graduates are not only high-qualification professionals; they are educated, broadminded and intellectual citizens of our state as well.

IN “NEMUNAS” VALLEY, THE KNOWLEDGE WILL BE APPLIED IN PRACTICE Together with the partners, Lithuanian University of Agriculture (LUA) started implementing of the project on development of the Integrated Science, Studies and Business Center (Valley) „Nemunas“: „Development of Research and Experimental Development Centers in agrobiotechnologies, forestry, biomass energy, water and biosystems engineering, higher education studies and the related facilities with a reorganization of scientific and educational institutions”. In course of its implementation, in addition to extending the existing facilities of Research and Experimental Development Centers in agrobiotechnologies, bioenergy, forestry and the related spheres, it is planned to improve the quality of the process of studies, to consolidate the scientific potential and to form favorable conditions for establishing knowledge-receptive business enterprises. In the planned sectors of research, Lithuanian University of Agriculture has accumulated a particular scientific experience, formed the initial material facilities and human resources. This project will strengthen the relevant sectors of the activities of the University; it will continue for 4 years and its value exceeds 80 million Litas. „Nemunas“ Valley was formally opened on 14 May of the current year. Prof. dr hab R. Deltuvas, the Rector of LUA since the year 2004, stressed: „We should make science to cause economic grow

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instead of developing science for science. We hope that the Valley will give a real benefit and that we’ll not forget the primary idea – uniting the forces of agricultural science.“ The importance of the event was attested by list of honourable guests presented in the solemn ceremony. It included Prof. dr hab Henrikas Þilinskas, the Chairman of the Board of the Valley; Prof. dr hab Albinas Kusta, the Director of the Valley; Prof. dr hab Romualdas Deltuvas, the Rector of LUA; Kazys Starkevièius, the Minister of Agriculture; and Gintaras Steponavièius, the Minister of Education and Science. „Although formally the Valley was opened today, many works are

In April, the traditional agricultural exhibition „Kà pasësi... 2010“ /”The beginning makes the ending” /(http://kapasesi.lt) was arranged at Lithuanian University of Agriculture. It was the fifteenth spring exhibition and totally the twenty-ninth exhibition at the University

completed already and a number of large projects are in progress.

Our “the Nemunas River” flows for the fourth year already,” Prof. dr hab Henrikas Þilinskas, the Chairman of the Board of the Valley told on the solemn opening the Valley.

Implementation of the project will result a formation of modern facilities for scientific research and experimental works. The acquired sets of devices will enable to ensure successful activities of laboratories, to carry out high-level scientific research and to develop new products, to simulate industrial processes with their possible subsequent transfer into pilot equipment at the same enterprises. The chosen devices are of high accuracy and they are

convenient for using in serial research works; in addition, they distinguish themselves for a reliability of measurements and repeatability of the results. „We understand that progress of business is impossible without high-qualification professionals, without knowledge, inventions and their application in practice, so we try to find the maximum possible number of points of contact with the University. We strive to encourage as many as possible young well-educated persons to remain in Lithuania and to create welfare here instead of leaving the country. In this respect, I particularly welcome the decision of the University of Agriculture and the Government on establishing

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“Nemunas” Valley that will serve for closer cooperation of science and business,” Alfonsas Tamoðiûnas, the Vice-president of ARVI group of enterprises, one of the incorporators of “Nemunas” Valley, says.

The results of the development of the scientific facilities will enable to improve the quality of the processes of the staff training and the studies, including the levels II and III of them, form favourable conditions for fulfilling advanced practical works and making research for master’s and doctor’s theses. The improved quality of training professionals and research staff and the improved qualification of human resources will provide the required preconditions for further development of the activities of Research and Experimental Development Centers, development and introduction of new technologies, innovations, and high added-value products in Lithuanian economy.

THE NEW QUALITY OF THE FACILITIES AT THE UNIVERSITY Lithuanian University of Agriculture will implement the project on “Nemunas” Valley in cooperation with the partners: Lithuanian Institute of Agriculture, Lithuanian Institute of Horticulture & Ol-

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ericulture and Lithuanian Forest Research Institute. In course of implementing the project, it is planned to reconstruct and repair premises of LUA buildings thus adapting them for installing new equipment, integration of institutions of partners and executing the process of studies.

After the reconstruction, the Joint Research Center to be formed by LUA and the project’s partners as well as a part of laboratories of Biosystems Engineering, Biomass Energy and Water Engineering Center, also departments of LUA Agricultural Engineering Faculty will settle at the considerably extended building for studies and laboratory works. Total about 110 employees will work and about 90 students will study there.

In other LUA buildings, premises will be repaired thus adapting them for formation of scientific centers, installation of new equipment, execution of improved process of studies and establishing integrated workplaces. Total about 70 new workplaces will appear.

Premises in the Central Building of the University, LUA Buildings II and III as well as in LUA Building of Experimental Station and the Hunting Research Laboratory will be reconstructed. The above-mentioned premises will be provided with laboratory and auditorium furnishing as well as furniture for the employees of integrated institutes. Computer hardware with software, the reno-

vated data center and computer network, other IT facilities with IT service monitoring, alarm and other equipment will be acquired.

In the period of implementing the project, 14 LUA auditoriums and laboratories usable for studies will be renovated. Research and Experimental Development Centers being formed by LUA and partners will be provided with laboratory equipment for those involved in agrobiotechnologies, forestry, biomass energy, water and biosystems energy (343 sets for 33 laboratories).

NEW PROJECTS FOR IMPROVING THE QUALITY OF SCIENCE AND STUDIES In the years 2005–2008, LUA successfully implemented 12 projects supported by EU Structural Funds for updating the facilities for scientific works and studies, improving the study programmes and the human resources.

For increasing the competitiveness of Lithuanian University of Agriculture and its recognition from the public, implementing of several very important EU-supported projects was started in the year 2010.

On implementing the project ,,Improving the efficiency of studies at Lithuanian University of Agriculture”, major changes of the structure of the University are planned; in addition, the quality of its management, the system of strategic planning and observing, the managerial competence of members of the collegial governing bodies will be improved and a system of accountability to the public will be introduced.

The other project ,,Updating of the study programmes of the first level at Lithuanian University of Agriculture (LÞÛU-PA)“ is related to updating study programmes and improving the competence of lecturers for becoming the top-quality university of the sector in the region.

While implementing one more project “Formation of organization-

al and methodic conditions for development of the enterprising skills in students using a model of practical training in business”, an enterprise for practical training in agrobusiness provided with modern electronic simulation means and technologies will be established at Lithuanian University of Agriculture. Thus scientific skills of students will be applied in practice.

The Center of Agricultural Science and Technologies under Lithuanian University of Agriculture is a partner in the project „The Support Network for Innovations at Integrated Science, Studies and Business Centers (Valleys) (InoNet)“. The object of this project being implemented since April 2009 is activation of scientific research and technological development (SRTD) as well as innovative activities at existing enterprises and the ones under establishment in areas of Valleys. In the period of implementation of the project, spreading of information materials on the potential of the services for supporting innovations provided by organizations of the network in mass media and various events, consulting on issues related to implementing SRTD projects are planned.

For disseminating scientific knowledge and innovative practice, LUA implements five Rural development projects of a particular importance for agricultural subjects: ,,Arrangement and management of sown grasslands in dairying“; ,,Technological innovations for environmental-friendly farms”; ,,Environment- and energy-saving technique in agriculture“; ,,Innovative winter wheat cultivation technologies for ensuring a competitiveness of production in crop farms“; ,,Linear and hybrid winter rapes cultivation technologies for ensuring a competitiveness of production “.

All the above-mentioned and newly developed projects will play an important role in realization of the aspiration of the University to turn into an internationally recognized competence center of biomedicine, technology and social sciences as well as studies in rural development.

FIVE RESEARCH CENTERS In the period of implementing the project on the Integrated Science, Studies and Business Center (Valley) „Nemunas“, 5 research, studies & development centers and 33 laboratories will be established.

The Joint Agriculture and Forestry Research Center. It will include the Laboratory of Agrobiology, the Laboratory of Environmental Research, the Laboratory of Microbiology, the Laboratory of Quality of Vegetal Raw Materials, the Laboratory of Biomarkers, the Laboratory of Agrobiotechnologies, the Laboratory of Research of the Impact of the Climatic Changes upon Forest Ecosystems, and the Laboratory of Wood Using, Quality and Processing.

Forestry Sector Research, Studies & Development Center. It will include the Laboratory of Hunting Research, and the Laboratory of Plantation Forestry.

Plant Genetics and Biotechnology Center.

It will include the Laboratory of Cryobiology, the Laboratory of Plant Metabolic,

the Laboratory of Plant Phitophysiology, the Laboratory of Molecular Markers, the Laboratory of Research and Development of Genetic Potential of Cereal and Feeding Plants.

Agroecology and Plants’ Biopotential Science and Studies Center. It will include the Laboratory of Ecophysiology, the Laboratory of Soil Physics and Productivity, the Laboratory of Diagnostic of Bioorganic Phitocompounds, the Laboratory of Plant Pathology, the Laboratory of Regional Farming Systems, and the Laboratory of Soil and Crop Ecology.

Biosystems Engineering, Biomass Energy and Water Engineering Center. It will include the Laboratory of Advanced Plantgrowing Engineering, the Laboratory of Geomatics, the Laboratory of Buildings and Buildings Materials, the Laboratory of Water Ecosystems Research and Simulation, the Laboratory of Thermal Energy Processes and Emission, the Laboratory of

Automatic Control of Machines, Technological Systems and Processes, the Laboratory of Technologic Safety, the Laboratory of Synthesis of Gas, Liquid Biofuel of the Second Generation and Biohydrogen, the Laboratory of Biodiesel Fuel, Bioethanol and Biological Lubricants, the Laboratory of Biomass Preparation, Logistics and Solid Fuel Processes, the Laboratory of Biogas, the Laboratory of Biological Waste and ByProduct Using.

www.lzuu.lt

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STEADILY GROWING

EXPORTS

OF KG GROUP CONSISTING OF AB KAUNO GRÛDAI, AB VILNIUS AND KAIÐIADORYS POULTRY FARMS Group of companies KG Group is the largest processor of agricultural products in the Baltic States. The company employs more than 2,500 employees. One of the company’s businesses is the manufacture of products for livestock and poultry.

This area is being particularly actively developed by KG Group in Belarus

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Photos: Klaudijus Driskius

along with consultations on matters of farming technologies have enabled us to conquer a large sales market in Belarus”, T. Barðtys says.

KG Group works directly with major manufacturers, and serves other businesses through the company’s business partners in Belarus.

TAUTVYDAS BARÐTYS, KG Group Board Chairman ”We operate in the Belarusian market for the fifth year. Initially, we only examined the market and now we are its active players,“ KG Group Board Chairman Tautvydas Barðtys briefly presents the situation of exports to Belarus.

To develop its activities, KG Group buys large quantities of raw materials for compound feed production. The company works only with direct producers around the world. KG Group relations with business partners have already stretched to South America, Africa and Asia.

“Large volumes of purchases, fair management of logistics costs and partnerships with manufacturers allow us to reduce the product costs and offer our partners favourable supply prices. These factors

”We deal with products which we are able to produce, which are intended not only for selling but also for our own use. KG Group is a major poultry producer. Our experience in this field, opportunities for testing these products in our production facilities, updates of software, manufacturing technologies and constant refreshment of staff knowledge has enabled us to become a serious business partner.

Regular visits to our partners’ production facilities, practice-based transfer of expertise to our customers built us a reliable market player’s reputation,” T. Barðtys says.

The company expects significantly faster export growth this year compared to the last year since it has become a very important factor to the entire Group’s business success. It is also important that the export portfolio is dominated by the markets of less risky countries where the establishment is the most difficult; however, later it renders stable and predictable income.

“At the beginning of the crisis, the situation has changed everywhere, and not for the better. Only thanks to our reliable partners and our engagement in the grocery segment, the crisis brought us no harm, although it has significantly decelerated our development, and made us to assume a different approach to a number

of ready-made projects,” KG Group Board Chairman Tautvydas Barðtys says.

According to T. Barðtys, the strategy of Group investment to the increase of manufacturing efficiency and latest technologies has already proved successful. ”For several years, the continuing growth of the internal market had a soothing effect, but now we see that the quietness has been deceptive. Agricultural price fluctuations are becoming more difficult to forecast, and the Lithuanian population’s purchasing power is no longer growing, therefore, KG Group will continue to conquer foreign markets,” T. Barðtys says.

According to him, it is now crucial to closely monitor developments in global markets and review the export trends by focusing on markets where economies are able to withstand the current prevailing turmoil.

When asked about his opinion on the preventive security measures of the Belarusian market, T. Barðtys replied immediately. ”Each state protects its own market and makes every effort that the product which can be produced within the domestic market is produced there. The Belarusian policy is no exception. Many of the world’s biggest producers already have manufacturing facilities in Belarus; we are considering such opportunities as well”, Tautvydas Barðtys optimistically concluded the interview.

www.kauno-grudai.lt

The combined feed factory

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High quality and conďŹ dence – the key guides of the activities

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This year, UAB „Smulkus urmas“ commemorates the 18-year anniversary of its activities. However, history of the company started as early as in the year 1946, when Vilnius „Rûta“ involved in distribution of food stuffs was established (in the beginning, it transported them by horse-drawn carriages, then – by motorcycles and cars). Later, the said company turned into „Smulkus urmas“.

public catering services are provided under „Myls“ trademark created in the year 2008.

ATTENTION TO A HUMAN

In the year 1996, the company extended the sphere of its activities – started providing public catering services.

In the year 2009, the turnover of the company amounted to 45 million Litas and 44 new jobs were established. It provides services to almost 2000 organizations over whole Lithuania.

Under the shadow of this hard period, the income of the company (one of the biggest national companies engaged in public catering services and trade in food stuffs) increased within the 1st quarter of this year by 21 percent, as compared to the same period of the previous year, and amounted to 13.1 million Litas.

In the year 2010, it is planned to increase the turnover up to 40 percent; in addition, up to 100 new jobs will be established.

„MYLS“ IS EXTENDING Although wholesale trade in food stuffs remains the principal activity of the enterprise, it always thought and thinks about new spheres of the activities. It can be stated that the name of „Smulkus urmas“ was outgrown, so today the

all large hospitals of Lithuania, Vilnius, Këdainiai and Anykðèiai self-governments as well as Lithuanian Army.

UAB „Smulkus urmas“ controls the network „Myls in tempo“ that consists of 11 coffee-houses as well as café „Myls lounge“, over 100 catering enterprises at Lithuanian schools and hospitals, restaurant „Myls restaurant“; in addition, it arranges „Myls banquet“ parties and catering of aircraft passengers „Myls aero“.

This year, the company began nourishing patients of Vilnius Institute of Oncology and Sapiega Hospital, schoolchildren of Vilnius S. Daukantas Secondary School, employees of „Vilniaus energija“ and welfare recipients from Vilnius City, so it was forced to increase the number of its employees. In addition, the services of the company are used by Seimas of Republic of Lithuania, „Valstybes kontrolë“ /”The State Control”/, oil refinery „Orlen Lietuva“, Ignalina Nuclear Power Plant, „Vilniaus energija“, Vilnius Airport, air lines „Flylal charters“, „Star 1“,

In the early 2010, the company was the first national public catering enterprise provided with a certificate for cooking environmental-friendly food for the Emergency Medical Aid Hospital of the capital; such food is supplied to patients of Vilnius University Institute of Oncology, Vilnius Maternity Hospital and Vilnius Narcology Center. Cooking technology „Cook and chill“ that is popular in foreign states was adopted in Lithuanian market as well. According to the said technology, dishes are rapidly cooled and then regenerated. The food remains safe and does not lose its nutritive properties.

In its activities, the company introduced four ISO Certificates in the spheres of quality control, environmental protection, health & occupational safety and food safety. In addition, the Customer Relationship Management system (CMR system), recent technologies and business management programmes were introduced.

The management team of the company plans to extend its activities out of Lithuania as well. In the meantime, the closest neighbouring states are in the outlook. According to the plans, the turnover of the company should exceed 100 million Litas within the nearest two years and the income from trade in foreign markets should form at least 10 percent of the turnover.

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PETRAS VASILIAUSKAS: „I am glad to see radiant eyes of the employees“

PETRAS VASILIAUSKAS, the Chairman of Board of Directors

The today image of „Smulkus urmas“ enterprise was formed by PETRAS VASILIAUSKAS, the Chairman of its Board of Directors, with his colleagues. We inquired how he would assess the hard history of the company.

BiL Company „Smulkus urmas“ exists for 18 years already.

What events do you consider the most momentous for you and the most important for the activities of the company?

ployees had some doubts about implementing such ambitious goals; however, they recovered self-confidence and I could see the resolve in their radiant eyes.

The most momentous day was the day of acquisition of the company three years ago. We believed in its good perspective and inspired our employees with that believe. When we took over controlling of catering enterprises of Seimas of Republic of Lithuania in the year 2009, employees of the former company failed to come to their workplace on the last moment. However, my staff rallied round, settled all problems and continued the activities of the catering enterprises. So, our staff showed its ability to concentrate itself for implementing the set tasks. I am sure we’ll be able to settle any problems.

In addition, we restructurized the enterprise and introduced new technologies.

A high turnover is achievable, when clients are satisfied with our activities. In our turn, we do our best to win and maintain their confidence. We always quickly respond to problems and settle them.

The activities of the enterprise are successful because of solidarity of the employees and confidence of partners in us.

BiL The company was able to increase its turnover even in the hard period of the economic recession. How did you succeed in this and what goals are set for future?

Thanks to the enthusiasm and everyday collar-work of the staff, really impressive results were achieved. In the year 2007, the turnover amounted to 30 million Litas and in the year 2008 – to 50 million Litas. In the beginning, the em-

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www.smulkusurmas.lt

STAR1 AIRLINES Brings Revival to the Lithuanian Aviation Market After its launch in the middle of 2009 the Lithuanian low-cost air carrier “Star1 Airlines” renewed direct flights between the Lithuanian capital and other European cities. Today Company’s flights connect Vilnius with London, Dublin, Milan, Girona (Barcelona), Edinburgh, Palermo and Heraklion and make up to 1/3 from the total number of routes operated from Vilnius International Airport this summer season. “Star1 Airlines” was one of the few flight companies to launch its operations during the period of economic recession. stablished by the aviation and tourism experts the company contributed to the development of the local economy by creating over 70 new work places and generating significant revenue to the state budget.

Martynas Laivys, the head of “Star1 Airlines”, shares the pride about the achievements: “Over one year we have put in a great deal of efforts to enable our clients to reach their desired destinations at an attractive and competitive price without compromising the quality of the air travel experience. Low fares of flight combined with high quality of service and attention

MARTYNAS LAIVYS, the head of “Star1 Airlines”

to every client gives us a solid competitive advantage”.

to maintain the combination of high quality standards and reasonable prices.

Most of company’s routes have already attained strong position in the market and generate regular passenger flows.

Destinations like London and Dublin share the popularity among emigrants whereas Milan and Girona (Barcelona) attract tourists and holidaymakers.

The future is promising – the management of “Star1 Airlines” is not only planning new routes but also envisages potential in the incoming tourism sector. According to Martynas Laivys, “Vilnius is becoming ever more popular among the city break travellers and has many things to offer.

We consider it as a priority to show the best of what we have to tourists from all over the world who enjoy new and efficient travelling possibilities today thanks to travel operators and low-cost carriers like “Star1 Airlines”.

The first year of operations was marked not only by well established routes and strong position in the highly competitive flight market. Within a year the Lithuanian air carrier has earned customers’ trust and works hard

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UAB “Centro kubas - Nekilnojamasis turtas� is one of the oldest real estate agencies in Lithuania, providing intermediary services in the market of immovable property.

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S

ince the start of business 18 years ago, the company has gathered priceless experience and knowledge portfolio. The company participates actively in activities of associations of Lithuanian real estate agencies and property valuers. The company provides not only qualified consultation on sale, purchase and investments into real estate, but also provides real estate assessment services and intermediary services in other real estate transactions.

The call of our company is – fairness, confidence and long-term relationship. For the time being, the company employs eleven competent specialists having knowledge in their field, who not only perform their work with excellence, but also are involved into management and collection of data for one of the biggest real estate databases in Lithuania. The database includes the data on real estate market monitoring performed by our employees and data on transactions in which the company took part.

The professionalism of our employees and long-time experience is a key factor for UAB „Centro kubas – Nekilnojamasis turtas” to remain stable and competitive during the crisis period. The company performs well in Lithuanian real estate market and expands international relations. Cooperation agreements with real estate companies in St. Petersburg, Moscow, Minsk and Gdansk has

ZIGFRIDAS RACKOVSKIS, director of UAB „Centro kubas Nekilnojamasis turtas“

been signed, allowing offering objects for sale in Poland, Russia, Bulgaria, Cyprus and Uruguay.

The growing activity in the market was noticed by employees of the company, while performing the supply and demand analysis in Lithuania. An increase in transactions with participation of the company for Q3 was also noticed. The trend turns optimism on and inspires for new projects. „Year 2009 was full of tests and challenges for Lithuanian real estate market and our company; however, the increasing interest of potential investors and large-scale sale-purchase and rent agreements (in Q1 of 2010 the company was an intermediary for investment projects in high streets of Vilnius, sale of four-star hotel “Barbacan Palace” in the old-town of Vilnius, participation in transactions on sale and rent of commercial and residential premises), proved that we are capable of providing our clients with top-level professional services of real estate management, property optimization services, valuation and consultations,“ the director of UAB „Centro kubas – Nekilnojamasis turtas” Zigfridas Rackovskis states.

www.centrokubas.lt

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The decisive steps of UAB PRINTELA help it to preserve the leader‘s position | L IGITA ÐOLIÛNIENË |

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VALDAS BUKÐNYS, Director of UAB „Printela“

UAB „Printela“ is a leader of the market of textile labels in Lithuania, one of few Lithuanian enterprises making investments in new technologies in these hard times. This Kaunas company was the first enterprise of the Baltic States that decided to acquire the up-to-the-minute digital offset press for production of labels and flexible packages of various types of films and cardboard. In addition to ensuring extraordinary rapid fulfillment of any order of a client and high quality of printing, it will enable to reduce the production costs down to 50%.

CORRECTED THE PLANS Latterly, UAB „Printela“ is completing introduction of the worldwidely known digital offset press HP INDIGO. The investment of the enterprise in arranging the new line exceeds EUR 1 million and return on it is expected after 5 years. „The hard period corrected our plans. We understood that we should reduce the production costs, increase the speed and flexibility of performance of our works and offer top quality of printing

to our clients,” Director of UAB „Printela“ Valdas Bukðnys says.

The activities of the enterprise are developed in three directions: 1) production of textile labels; 2) production of adhesive paper labels, and 3) screen-printing. Up to now, the enterprise seems to be the only company of the Baltic States able to print labels of various types on various surfaces using the same equipment.

It was one of the cases that encouraged UAB „Printela“ to be more active in working with foreign markets.

The transaction on acquiring HP Indigo is concluded with Rob Engelman, HP European sale Manager

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Even in case of inconsiderable alterations, the client pays again for the preparatory works. Upon changes of the information, a part of labels often was not used at all.

One of the advantages of digital printing is a possibility of printing a small number of labels for a price lower than the usual one. In fact, any needed quantity can be printed.

One more aspect ensured by UAB „Printela“ is the top quality of prints and repeatability of colours of the products: in the traditional printing, repeating the identical colours of earlier produced labels is a very complicated problem for a majority of enterprises today; however, thanks to the new equipment, it will be a simple task for UAB „Printela“.

Production of textile labels

ABUNDANT ADVANTAGES One more advantage of the new equipment is an opportunity of producing the desired quantity of products within very short time. „Because the preparatory works are not required before printing, we can execute an order on the day of its reception. In addition, the low costs of production enable even producing very small quantities of high-quality labels,” Valdas Bukðnys asserts.

According to him, independently on the number of ordered products, their price will be up to 50 percent less than earlier.

IT WILL REMAIN A LEADER The Department of digital printing

The Department of Digital Printing

THE INNOVATION WILL CHANGE THE MARKET As was mentioned above, production of adhesive labels is one of three spheres of the activities of Kaunas company where investments take place at present.

Up to now, high-quality coloured labels were usually printed in the way of flexography. However, this method of printing shows some imperfections while producing small quantities and various versions of labels, such as expensive preparatory works, long process of production and high prices. Striving for a lower price, a majority of clients are forced to order larger quantities, thus freezing circulating funds that are particularly important in the present period.

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The other opportunity offered by UAB „Printela“ is individualization of labels. „Each printed product can be another. We’ll make even a single label at a wish of a client,” the Head of Kaunas company says.

Labels can be printed on any soft and flexible material. According to professionals of this sector, no Baltic State has printing equipment that uses paper, cardboard and films as raw materials.

UAB „Printela“ successfully develops its activities since the year 1997 and plans to remain a leader of manufacturing textile labels in Lithuania. It is the strongest and principal segment of the activities of the enterprise. „We worked purposefully in this sphere and have installed the production lines of all types of textile printing,” V. Bukðnys informed. We can print textile labels in up to 9 colours, to flex or cut them in the traditional or the ultrasonic way.

UAB „Printela“ is involved in screen-printing as well. We use it on surfaces of any materials, such as glass, ceramics, paper, plastics, or textile. Singlets, special letterforms, exclusive visiting-cards, advertisements on glass or plastic, transfers and decals – all of them are produced by screen-printing.

www.printela.lt

QUALITY FRAMING AND MAT CUTTING SERVICE KOKYBIÐKI RËMINIMO IR PASPARTAVIMO DARBAI Aukðèiausia kokybë, profesionalø konsultacijos, geros kainos * Didþiausias Lietuvoje bagetø bei paspartavimo kartono pasirinkimas * Atliekame sudëtingus nestandartinius meno kûriniø, fotografijø ir ávairiø objektø rëminimo darbus UAB „UPARTAS“ Latako str. 3, Vilnius +370 5 210 72 77 upartas@gmail.com

IONIZED WATER

The company BURBULIUKAS was founded in 1995. The company produces and distributes products for improvement of human health.

It is intended for people who love life, wish to live without diseases and enjoy every wink of their lives. Our products are certified not only in Lithuania but also in numerous countries of Europe.

The willingness and enthusiasm of the three men enabled designing, development and serial production of the PTV water ionizers (acronym from the first letters of three persons’ names) - the original household appliances. These appliances, called “home doctors” by the people leading healthy way of life became popular in many countries.

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PROPERTIES OF IONIZED WATER AND ITS USE No vital processes in the human organism may take place without water. Our health depends on its quality and properties. At the 70-ies of the last century, the researchers found one more variety of water - ionized water.

Ionized water is generated in special appliances - water ionizers PTV. In the process of water electrolysis, two types of ionized water are generated in two separate containers of the ionizer. These are the alkaline water possessing alkaline medium and weak negative charge and the acid water possessing acid medium and weak positive charge.

tralised and liquidified acid waste is easily discharged via kidney. Alkaline water also helps to maintain alkalinity of the blood.

Alkaline water rich in oxygen and negative OH- ions is a natural antioxidant at the same time.

Alkaline water used for treatment has the following parameters: pH = 10 - 11; ORP = -180..- 200 mV. The water attains such properties when the ionizer working time is 30 min. Sediments may appear in what witnesses the pollutants in the drinking water.

Negative ORP charge, smaller molecular formation compared to drinking water and as a consequence less surface tension enable efficient penetration of the alkaline water into the tissues, to dissolve even the hardly accessible acid waste accumulating in the organism and being one of the main causes of disorders. Neu-

Ionized water is also used in beauty therapy for skin softening and antiwrinkling, in gardening, vegetable growing and cattle raising.

Healing properties of silver have been known since ancient times. Old Indian books mention that water used to be disinfected by dipping melted silver into it or by keeping silver in it for a prolonged period.

Silvered water is the water enriched with positive silver ions. It become such having „paid a visit” to a water ionizer of special modification. As the silver electrode melts, the anode silvered water solution is generated.

Alkaline water pH (depending on the ionizer working time) is from 8 to 12, and the ORP is from -100 ... to - 200 mV. Alkaline water is soft, odourless, its taste reminds of rain water.

The alkaline water used for prohylaxis has the following parameters: pH = 8,5 - 9,5; ORP = -100..-150 mV. Such properties are achieved when the ionizer working time is 5 to 10 min.

It acts other way round compared to the alkaline water: it slows bioprocesses of the organism, reduces blood pressure.

Acid water gradually melts spurs, calculi, reduces ache of joints, is a great relief when sneezing, suffering from tonsilitis or flu. Regular rinsing of mouth stops bleeding of gums and dissolves deposits on teeth. It is your first aid when sneezing, sore throat and flu.

PROPERTIES AND APPLICATION OF SILVERED WATER

The water properties are characterised by two main parameters. These are alkalinity - acidity factor pH and oxidation reduction potential - ORP, showing electron energy (potential) which manifests in the organism during oxidation reduction reactions. Drinking water has pH =7 and ORP = + 150...+250 mV.

Molecular formations (clusters) of the alkaline water consist of 5-6 molecules what is similar to other organism liquids (in drinking water it is 10 to 13 molecules). The ORP negative values of this water are close to that of organism liquids and it has antioxidant properties. That is why the alkaline water is the “insider” and it immediately joins the vital activities of the organism. Alkaline water may be used for prophylaxis and for treatment of various diseases.

nally by wet lotions and damping.

Domestic water ionizer PTV

Alkaline water activates the whole organism, stimulates cell regeneration and eliminates energetic disorders of cells. It lightly increases blood pressure, heals all kinds of scratches and wounds as well as stomach and duodenum ulcers. Alkaline water regulates the volume of calcium in blood what has influence on occurrence of such diseases like osteochodrosis, atherosclerosis and polyarthritis. It is a natural product which gives a push to the vital potential of the organism for coming over various disorders.

Effect of the silvered water depends on silver concentration in such water which is measured by milligrams per litre (mg/l). The higher the concentration the higher is the effect of water in killing various microbes. Such water rich in silver ions is biologically clean, i.e. it is free from microbes. Besides, silver ions kill not only bacteria but also viruses (antibiotics do not destroy viruses).

Small volumes of silver are required for normal functioning of the organism and strengthening of immune system. With age the organism is losing its capability to assimilate silver. Shortage of silver may be restored by drinking low concentration (0,01 mg/l) silvered water.

Acid water (pH = 2 - 4; ORP = +180...+ 250 mV) is of sourish taste and has bactericidal properties.

Being of positive ORP, the acid water acquires oxidation properties. As the ORP of most organism liquids is negative, this water should in most cases be used exter-

www.burbuliukas.lt

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BALTIC GROUND SERVICES – reliable and competent partner at the airport

“Baltic Ground Services” (BGS) is one of Lithuanian ground handling leaders.

The company performs all ground handling operations in the largest airport of Lithuania Vilnius International Airport and in 2010 has plans to start its activity in Poland.

BGS is the 10th ground handling company in the world and the 1st in Europe granted ISAGO Registration (IATA Safety Audit for Ground Operations). “This achievement confirms our commitment to top safety of all ground operations“, explains Saulius Batavièius, Director of Baltic Ground Services.

High attitude to quality system (further development of ISO 9001) and quality monitoring system (10% of monthly flights are monitored by internal quality 102 |

inspectors) ensure the best services to the customers.

To ensure the high quality of services and aviation security, BGS implemented the modern system of safety for baggage handling. Each bag is scanned in sorting area before loading on the plane, the data of scanning is immediately going to the central server and automatically is compared with check-in data.

In daily business, all BGS’s operations are

managed by electronic Flights Management System which allows to plan and control company’s resources, to coordinate all working tasks and to issue automatically invoices.

At present BGS, has around 90% of fuelling and around 40% of ground handling market at Vilnius International Airport. The company handles the number of well known airlines such us Lufthansa, LOT, Austrian Airlines, Brussels Airlines, Czech Airlines, Finnair, Aer Lingus, DHL and others.

CUSTOMISED GROUND HANDLING SERVICES In the course of more than 15 years, BGS has accumulated considerable experience in ground handling business, employed a qualified personnel whose theoretical and practical knowledge open up the possibility to suggest solutions specially adapted to individual needs of every customer.

BGS’s passenger handling department offers passenger and baggage check-in service, VIP and special passenger handling, departure, arrival and transfer services, support services, lost and found baggage services and irregularities handling services. BGS also take care of ticketing service for the clients.

Ramp handling operations include aircraft services, baggage handling, aircraft loading and unloading, cargo and mail services, interior and exterior cleaning, push–back and towing services, ground transportation, lavatory and water services, ASU, GPU, de-icing and anti-icing services.

From 2008, BGS also started providing fuelling service for the airlines. “Fuelling isn’t standard territory for the handler, but we’ve found it efficient to have it in our portfolio,” S. Batavièius says. The company is supplying Jet A-1 for significant number of airlines and has up to 90% of fuel market at Vilnius International Airport.

IN A FAMILY OF PROFESSIONALS Baltic Ground Services is a part of Avia Solutions Group (ASG), one of the leading providers of aviation products, services and solutions in Eastern Europe. ASG is a fast-growing player in the air transport industry with a global network of partners, supplies and customers. The group employs more than 1,000 aviation professionals, specialising in a range of services and solutions vital to any airline or governmental aviation institution.

ASG comprises several companies engaged in aircraft management, leasing and insurance (AviaAM Leasing), aircraft maintenance, technical support and spare parts supply (FL Technics), technical and crew training (Baltic Aviation Academy, FL Technics Training), ground handling (Baltic Ground Services), full charter flights, ACMI, ad hoc services in Lithuania, Poland, Italy and Estonia (flyLAL charters). In 2010, ASG plans to reach annual turnover of EUR 150 million.

www.bgservices.lt

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The most important reward is a repeated visit of a client...

MDF stencil dyeing presented at the exhibition “BALDAI 2009�

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Hereinafter, we speak with INESA ABROMAITË, the Director of company „Sostinës baldai” involved in designing, manufacturing and selling piece carcass furniture for various purposes BiL What was the start of „Sostinës baldai“?

I am involved in furniture production for the eighth year already. In the late 2006, we established enterprise „Sostinës baldai“. From the very beginning, we planned both assembling and production of furniture, so we acquired all machines required for its production (such as cutting machines, edge-gluing machines, milling machines and so on). I am very glad that our young but experienced staff was formed sufficiently rapidly and a considerable part of it works up to now at the enterprise.

BiL Had you a vision of the Company and how did you imagine the production of the enterprise and its clients?

In my opinion, furniture should be harmonious. I am a great lover of arts, so I get a sight of misbecoming of colours and lines, inconformity of furniture to the style of the interior, choosing the accessories in violation of general rules of design and so on.

For this reason, we mostly wished to produce nice and aesthetical furniture. Upon the abundance of tawdry furniture, a wish for changing the situation appeared and we implemented it by establishing an enterprise engaged in furniture production.

For implementing our vision, we entrusted furniture designing to professional interior designers.

BiL Please, tell some words about your production. I know you are involved both in production of bureau furniture and domestic furniture.

Our productivity is high enough. If we make furniture for private clients only, we’d use about 60-70 percent of the capacity of our machines. So, we produce bureau furniture as well. We’ve won many national contests.

We made all bureau furniture for Kaunas Railway Station; Lithuanian Institute of Agrarian Economics was our client as well.

We strive to offer more modern furniture, not standard bureau furniture of the same boards, to our clients. We combine light and dark colours, thus ensuring a better visual effect. In the manufacturing process, we take into account the requirements of ergonomics striving to ensure the maximum comfort for a working person.

BiL What furniture is most frequently ordered by private clients?

Most frequently, private clients order kitchen furniture and wardrobes with sliding doors, because they are much more rarely available at furniture trading centers, as compared, for example, to chests-of-drawers or coffeetables. These products form about 80 percent of production made for private clients, where kitchen furniture forms 70 percent of this share and wardrobes - 30 percent.

BiL Are orders executed in full from provision of the offer to implementation of the idea?

Sometimes, clients come with professionally developed projects; some persons draw a sketch; however, most frequently our designers develop a project in accordance with the specific space. In the beginning,

we calculate and coordinate the price, make measurements, provide a coloured visualization and sign the contract; then a prepayment is paid, technical drawings are made for the manufacturing shop and the assembling department – and the manufacturing process starts. Before signing the contract, we choose colours and fittings of the furniture. It is very important, because correctly chosen details of finishing provide an impression of completeness.

Manufacturing of a piece of furniture starts from board cutting. The cut boards (blanks) are laminated with PVC edging or dyed; after the primary treatment, they are sent to the assembling department. Usually, execution of an order lasts about one month.

BiL What materials of boards and what colours do you use for your furniture?

We try to use high-quality materials only.

We choose several manufacturers from Germany, Austria, Italy and Poland, because their raw materials really distinguish themselves for very high quality. The same should be said about fittings: we cooperate with several manufacturers of topquality fittings from Austria and Germany.

The prices of better materials are higher; however, we try to supply a product of the maximum possible quality at popular prices to our clients and courageously provide a warranty for 2-3 years for our furniture. Even the most primitive laminated chip-boards differ: cheaper boards are of a lower density, their external coating is not resistant to mechanical forces (it wears | 105

The novelty of the year 2010: 3D relief facades

out rapidly and white spots appear on it), the melamine (paper) edges come unstuck after 2-3 months. Because we set a sufficiently long period of warranty, we are obliged to use materials of high-quality only; otherwise a permanent elimination of defects would “melt down” the total profit.

Any worldwidely known manufacturer presents a certain colour palette. But people of Lithuania prefer other colours than, for example, Danes or Germans. For example, a manufacturer produces boards of 200 tints; Lithuanian manufacturers choose 50 tints among them and Danish furniture manufacturers choose other 50 tints. It is notable that Lithuanians up to now prefer darker colours (a la „wengë“) and in foreign states, lighter colours, in particular, white colour, are in vogue for a long time already. However, some clients observe the modern trends and accept our offers to make fashionable furniture for them.

BiL What possibilities of extension of the Company do you envisage and how do you imagine your future?

At present, the situation of economy is not favorable for furniture manufacturers; however, we do not refuse our ideas on extension and hope to start it in the nearest future. If we enter foreign markets, it would be possible to speak about the extension today. We made attempts to develop joint projects with Britons and Norwegians; however, they imagine us to be representatives of a non-developed country of the third world that should sell it’s production for pennies. Of course, the most important obstacle for the extension is a lack of appropriate manufacturing facilities. Most frequently, they were situated far away from the city (for example, the facilities in Aviþieniai, Vilnius District), so because of transport problems it is impossible to attract goods employees. We are glad to find finally the premises in the center – it is convenient both for clients and the employees. This circumstance provided us an opportunity to engage several good employees and to receive a number of orders.

Recently, the competition became much crueler; however, we choose a more difficult way 106 |

in it. It is easy to apply “The Price Bottom” strategy; however, it broke down many enterprises and hustled them out from the furniture market. Starting to apply new technologies in manufacturing process is much more complicated way. We simultaneously are forced to improve the quality and the design of our furniture on a regular basis.

BiL What novelties can you offer today and in future?

Not long ago, the only method of transferring images on details of interior, glass or furniture was their printing on a film and subsequent gluing on the relevant surface. No wonder that much more convenient high-quality alternatives appear in these times of new technologies. The new advances technology UV-LED provides a possibility of printing photographic images on any surface. It is an environmental-friendly technology, so it is ideal for decoration of premises with the set high hygiene standards.

In addition, I’d like to mention that in spring of the last year, we started applying a new method of dyeing invented by our technologists. It is MDF stencil dyeing: the base is dyed with one colour; then a digital stencil is transferred to it and the remained part of the image is dyed according to it. The image is dichromatic only. A combination of darker and lighter colours provides an excellent effect. The Company has demonstrated this technique publicly already: at the exhibition „BALDAI 2009“ /”FURNITURE 2009”/, we presented out conceptual kitchen furniture „Viktoriana“ where the black-and-white facades where decorated using the method of stencil dyeing.

The novelty of this year presented at the exhibition „BALDAI 2010“ /”FURNITURE 2010”/ is 3D relief facades..

We are optimists and do our best to ensure high-quality and honest activities of the Company striving to gain sincere thanks and a smile of each client. We feel having obtained the most important reward when a client having ordered a piece of furniture from our Company visits us again for ordering more of them.

DESIGN AND CONSTRUCTION OF PARTICULARLY ENERGY EFFICIENT PASSIVE HOUSES UAB “Veikmė” J. Galvydžio str. 11, Vilnius Tel. +370 5 2341405, mob. +370 614 19505 Info@veikme.lt, www.veikme.lt

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Wsprings ELLNESS

RESORT

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RESORT DRUSKININKAI For more than 200 years Druskininkai attracts people from Lithuania and foreign countries with its marvelous nature and curative mineral water springs.

The biggest resort of Lithiania is situated on the right side of river Nemunas, surrounded by forests from three other sides.

There are no large industrial objects in the surroundings of Druskininkai, thus weather and water are extremely clean here.

Mild climate, calm environment and pine forests around, will contribute to productive relaxation and will help to recover physical and mental strength.

Have you felt that you would like to have a holiday but it feels as if you have already been everywhere; that You would like something special for a change – something for both body and soul at the same time?

For hundred years, natural factors – mineral water and mud – are making Druskininkai resort famous. Now they are combined with modern technologies in Druskininkai. This creates perfect oportunities to fully treat different illnesses and strengthen body.

MEDICAL SPA “EGLËS” SANATORIJA The largest medical SPA – ,,Eglës” sanatorium in Lithuania and throughout Eastern Europe offers more than 150 different treatments and preventive procedures: mineral water, curative mud,

physiotherapy, psychotherapy. Medical SPA ,,Eglës” sanatorija can accommodate about 1,500 people at the same time.

The primary source of harmony and health lies in nature. Nature provides us with everything we need for our physical and mental health. Clean air, mild climate, pinewood surrounding the medical SPA ,,Eglës” sanatorija, mineral water springs, therapeutic mud – all this combination can bring back the health as well as joy of life.

Natural treatment factors today are supplemented with modern technology achievements in medical SPA ,,Eglës” sanatorija.

This creates excellent possibilities to provide all kinds of treatment for different illnesses and strengthen our body. Therapeutic mud and mineral water from the medical SPA ,,Egles” sanatorija own resources are used for the procedures, performed by experienced specialists.

The newly opened complex “Eglë+” can accommodate up to 350 people at the same time. There is a new medical treatment center in the same building, where you will be offered about 80 medical procedures and about 60 other services. For the leisure time, visitors can spend an evening in the winter garden and play chess, listen to concerts or to visit the restaurant. Gym or squash hall is available for more active customers. You can have it all with no leaving the building. Individual customers can choose the length of their stay.

We try to prove the treatment can be pleasant! Restored strength and joy of life for a long time will remind about this house of health...

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Natural Treatment Factors in Druskininkai – MUD, WATER AND CLIMATIC EFFECT  PELOIDS – PEAT, MUD Peloids are inorganic and organic pottages, which are, after certain modification and heating, used for baths, wraps and compresses. They are made of peat and other mud which can be found near springs. Usually mud is mixed with mineral water, and of certain level of oxidation. It is used for 15-30 minutes (depends on which treatment procedure) once it reaches temperature 400 C. Peat wraps are used for treating locomotive system disorders, gynaecologic complaints and respiratory system disorders. Special additional treatment is offered in the form of peat vaginal tampons, which are used for curing chronic gynaecologic inflammations and sterility in women.

 CURATIVE MUD BATH (with mineral water) Just 20 minutes spent in warm mud bath will open skin pores, remove slag; many useful microelements and biologically active materials will enter the skin and blood circulation system, metabolism gets more active. Curative mud bath relieves pain, stimulates healing processes, activates metabolism. Mud bath is meant to be effective in treating different chronic, allergic diseases, digestion malfunctions, illnesses of joints, muscles, gynaecological and urological problems.

 MUD APPLICATION Medical treatment with mud is known since antique times.

There are several types of medical mud, peat mud is mostly used in Lithuania. Due to body changes caused by warm mud, different functions normalise, circulation of the blood intensifies, oxygen is uptaken raises, inner gland activity increases. Because of these there are effects of pain relief and anti-inflammation; body protective and adaptive mechanisms liven up.

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 MINERAL WATER BATH Salts dissolved in water create the effect of these baths.

Salts keep taking effect even after leaving the bath, since stay on skin by thin layer – „salt cover“. Muscles relax, tone of vein walls raises, skin pores open, breathing goes deeper, circulation of the blood and metabolism grows up, oxygen absorbtion goes better while taking the mineral water bath.

Neuro-, cardio-, imuno- illnesses and skin diseases can be treated. Single treatment time – 10-15 min.

 VERTICAL BATH Vertical bath is very effective in treatment of muscles,tendon, bone and joints diseases. During the treatment procedure, the effect of mineral water is supplemented by positive effect of physical therapy (treatment by movement). Muscles relax and even become partly weightless, thus person fulfills active healing movements easier and with no pain. After the course of vertical bath treatment, muscles and bands strengthen, spine becomes more mobile, movements are lighter, pain often disappears.

 EXERCISE DOES YOU GOOD AND MAKES YOU SMILE As doctors like repeating, your moving or daily gymnastics is a free pill to fight against your age. Choose an activity you really enjoy. Here in Druskininkai you will find form of exercise for you.

Health and wellbeing are obviously the priorities of any SPA resort but there is also plenty to enjoy away from the treatment suite.

Elegant restaurants and cosy cafes, the one of the biggest aqua park in Europe for instance. Relaxation or activities in the open air.

You are free to spend your leisure time just as you wish.

www.sanatorija.lt

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Eternally green "Diemedis"

This is the title of the essay written by the 12th grade school student from Klaipëda on his one week spent in the hotel-villa Vila Diemedis in Palanga.

It was his first visit to the Vila Diemedis, but who knows, may be he will return back and will be a regular visitor in the future as a well-known writer, looking for this specific atmosphere, which for over than half of the century has attracted to the Vila Diemedis the so called friends of quill pen.

The writers of the senior generation would not forget the house called Diemedis, which is located on S.Daukantas Street No. 11 in Palanga. Let‘s ask Algimantas Baltakis, Eduardas Mieþelaitis, Justinas Marcinkevièius or Jonas Mikelinskas, the poets and writers who have spent in this house a significant number of time: they can tell interesting stories about discussions held here and the pieces written by them here.

Nowadays the house has been renovated and the lights in the windows lively attract people. The main thing is that the name Diemedis and the atmosphere of the villa has remained the same as in former times. In each room, one can see the portraits of writers, the books and a tiny library, which the writers and holidaymakers have been continuously supplemented with the new books.

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Now it is fun visiting the hotel Vila Diemedis.

We are glad that it welcomes visitors all year round and its‘cafeteria offers good meals.

Visitors may enjoy their time and chat with colleagues in the bar until late at night.

Young people enjoyed the Academy of Autumn (Rudens Akademija), the event held here in October 2009. The Academy of Autumn is a creative workshop of young writers. The most talented 9-12th grade

school students from various Lithuanian schools come to this workshop and master classes are held by contemporary writers, actors and artists. In these workshops, students not only listen to lectures but have a number of practice classes and discussions together with the lecturers on their works; while wandering in the town they discover their own Palanga and learn how to combine their quiet being with their cogenials and the art of writing with other areas of art, such as cinema, photography and theatre. For the entire week, young and adventurous voices were “jingling“ here, holding forth a hope that that the revival of the green house is not only the new walls, comfortable apartments, but a new creative life as well. The magic wheel “sucked in“ the young people, or may be they were gripped by the sights of poets and writers, looking at them from the portraits? One way or the other, they left the house having changed a little bit. One of the young creators wrote after some time: “I can only say that these six days were most probably my best autumn holidays ever recalled.

It is nice to find the People, in which one can envisage oneself. I appreciate the Chance, the lecturers, the creators, the Vila Diemedis and Palanga, where all this was happening.

And I thank myself for accepting all this.“ All this was also appreciated and accepted their way by a number of adults, who in the early September 2009, when the sea was still warm and soft sunrays were petting in the evenings, were welcomed by the Fund of the Lithuanian Writers Union to the Diemedis Nights (Diemedþio Vakarai), the international workshop of poets and artists, held for the third year in a row.

This Lithuanian – Byelorussian – Ukrainian – Georgian poet and artist workshop was designated to celebrate the millennium of Lithuania. The poets were translating co-participants‘ works into their native

languages, and the artists were painting Palanga. They were working hard, huddling together in the small teams of two or three participants, and when their minds would “heat up“, they would go to the sea to “get chilled down.“ The Georgians had seen a couple of sunrises with their legs washed by the wavelets of the Baltic Sea, and they brought to Georgia a souvenir - some sand from Palanga beach put in small boxes. It is an extremely rare opportunity when one can inquire the author, who lives thousands of kilometres away, about the refinements of his/her poetry or to hear a colleague‘s opinion on the ancient park of Palanga, sighted and painted by him/her.

In the end of this workshop, a one night exhibition and poetry night in all languages of the workshop was held in the Anapilis club of Palanga city.

Then “we went to our beds, but our dieme-

dis (the tree of God) was still sighing in the night...“ Diemedþio Vakarai continued their life in other places – the exhibition of the pieces painted during the workshop took place in November in Vilnius, and on November 10 the participants of this workshop were gathered in the presentation of the Internet almanac Diemedþio Vakarai ( www.diemedziovakarai. lt) organised in the Writers‘ Club in Vilnius.

Vila Diemedis hotel in 2009 was a seasonal Christmas Embassy of the Norwegian kingdom, the kingdom of St.Lucy, the residence of the Embassy of the People‘s Republic of China during the Chinese art days in Palanga.

Vila Diemedis hotel is an excellent place for relaxation, creation, communication and even – for the discovering of our selves.

It is a good opportunity for writers and artists, authors and their critics to create and relax together. Here works an experienced team of staff, organising and holding international and national cultural and educational events. Here your meaning will be caught immediately and you will be recognised at the first sight.

www.viladiemedis.lt

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T he modern world herbalist offers to ďŹ nd life in seeds

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he moon was slumbering in the bright June night and the secret was wandering in the chattering meadow. The secret was flying from blossom to blossom, when finally stopped at the weather-beaten hands of a little girl. The secret of the country oracle and herbalist touched the hand of the girl, who was picking herbs, in order to transfer the knowledge gained by the great grandmother‌ 114 |

The hostess of the shop “Ievos namai”, which sells herbs, teas and spices, Ieva Jonaitienë waded the meadows, forests, picked the knot-grass from the public roads, dried the calamus in the loft, popped the sorbs into the roofs in her childhood. Ieva’s great grandmother was an oracle and herbalist. She did not transfer her secrets to anyone; however, it is said that the family characteristics descends to the third generation.

The teas, which are produced in “Ievos namai”, are special. While other herbalists mix the blossoms and the stems of the plants, where there are Yang and Yin, Ieva uses the oriental medicine prescriptions of thousands of years – she makes the teas of seeds, which contain both Yin and Yang energy.

“You can never know which energy the human needs – Yin or Yang. Therefore, the teas made of blossoms, stems or roots of the plants can even make some trouble to you. However, seeds contain both types of energy and the human body takes only that he really needs from the seeds then. The seed of the plant contains both life and death. When the seed dies, it excretes much energy and the excreted volatile oils give us life,” - the hostess of “Ievos namai shared the secrets.”

The young herbalist noted that in the 21st century only a very passionate coffee gourmet or a man having much free time can ground fresh coffee beans and enjoy fresh coffee every morning. Thus, the idea of “Ievos namai”is to make an opportunity to enjoy healthy and vivid coffee every morning nowadays, when people are rushing more and more.

When preparing the mystery mixes, Ieva usually grounds the seeds because then the teas are easier to prepare. When the seeds are poured with the boiling water, they excrete all the treating powers of the volatile oils and then every herb or seed contributes to the cleansing of our bodies.

“You can either believe it or not. If we do not believe that the tomato has vitamin C, we don’t eat it and our body does not get vitamin C,” - the hostess of “Ievos namai” said smiling.”

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KIDNAPPING EUROPE. Ihar Zasimovich, Balarus

Art, nature, calmness

VIDMANTAS MARTIKONIS, patron of arts and businessman, founder of the park

Vilnoja Stone Sculpture Park is a unique open-air museum of contemporary art, established near Vilnius, in Sudervë town.

Situated on the picturesque shore of the Vilnoja Lake and occupying a total area of 4 hectares, the Park offers opportunities for everyone to enjoy the impressive works of art, which have been created from the hard Lithuanian granite by more than a half hundred of authors from all over the world.

ums from Europe, Asia and America. The landscape of the Park was adorned by the sculptures, which were created from Lithuanian boulders by some world-famous artists, such as Jon Barlow Hudson from USA, Elizabeth Juan from Austria, Fabian Rucco from Argentina, Domenico Antonio Di Guglielmo from Canada, Valeriano Hernandez from Spain, Kyuichi Sato from Japan, Maria Leal da Costa from Portugal, Aramis Justis Perera from Cuba.

THE BIRTH OF TRADITION SILENT CONVERSATION The Park was founded by Vidmantas Martikonis, patron of arts and businessman. In 2001, he invited eight famous Lithuanian artists to a stone sculpture symposium in order to free up their ideas into field boulders. It was the time when the first sculptures were erected in the Park and such symposiums started to be organised every year.

The tradition to bring together best sculptors from all over the world in Sudervë quickly caught on, therefore today over 60 monumental works are exhibited in the Park, the authors of which are from more than 30 countries around the world. The authors include a number of Lithuanian sculptors of different generations: Antanas Kmieliauskas, Darius Braþiûnas, Algirdas Kuzma, Arvydas Aliðanka, Kæstutis Musteikis, Daumantas Kuèas, Dþiugas Jurkûnas, Juozas Genevièius, Stasys Juraðka, Gediminas Piekuras, Vaidas Ramoðka, Mindaugas Junèys, Ðarûnas Arbaèiauskas. The unique park was acknowledged at an international level by many artists who every year comes to the stone sculpture symposi-

The annual stone sculpture symposiums in the Vilnoja Park take place only one month. However, this time is enough for the talented artists to materialise their own ideas into the granite. Every sculptor leaves a large part of his or her creative energy and unique power of imagination in the Park. Some of them materialise conceptions that have been thought over for a long time, others seek for new stone working possibilities or try to unite creations of nature and human being, or combine alive and unalive pieces of nature.

According to the sculptor Darius Braþiûnas, “The Vilnoja Stone Sculpture Park opens minds of all artists who have worked here towards application of a natural stone boulder for the development of park spaces.

The sculptures in the Park are discussing, arguing, speaking out their values, interpreting myths and legends, involving at the same time all viewers into the discussion.”

Dalia Matulaite, sculptor and professor of Vilnius Art Academy, said “A stone is a powerful material; therefore only strong willed artists can work with it. A sculptor has to

BIG EXPLOSION. Mariam Hakobyan, Armenia

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SUNRISE. Zigmunds Bielis, Latvia

SALUTE TO THE LAKE. Dþiugas Jurkûnas, Lithuania

STONE ANTENA. Zbigniew Adamczyk, Poland

EQUILIBRIUM. Stasys Juraðka, Lithuania

GREAT MOTHER/ANECHKA. Beata Rostas, Vengria

POULTRY. Juozas Genevièius, Lithuania 118 |

THE DREAM. Antanas Kmieliauskas, Lithuania

FROM THE LAKE Daumantas Kuèas, Lithuania

THE LINES OF THE CRUSADE. Paulo Marujo, Portugal

A SCREWDRIVER TO OPEN STONE. Darius Braþiûnas, Lithuania

A EMBRACE OF STONE. Arvydas Aliðanka, Lithuania

listen to own creation, see it and ultimately free it out of the stone mass.” The visitors of the Park have a unique opportunity not only to dive into creative sources of artists’ inspiration, but also to get to know character of granite as a unique material.

EVERYONE IS WELCOME The Vilnoja Stone Sculpture Park kindly invites everyone, who are interested in art and culture – small and big, singles and families, school classes or fellow groups from Lithuania and abroad – to

visit the Park for free and spend a pleasant day. It is a great opportunity to become familiar with the variety of granite sculptures and unlimited possibilities of artists’ imagination as well as an extraordinary chance to admire breathtaking landscapes of the surroundings of Vilnius region. The waters of the Vilnoja Lake merge with the hills overgrown with apple-trees and works of art, whereas different sunlight at dewy morning, sunny afternoon and sunset evening offers viewers inspiring and unexpected impressions at all times. Moreover, in summer days one can enjoy warm lake water and the sandy beach, or visit a cosy restaurant of the Park, which is open all year round.

THE VILNOJA STONE SCULPTURE PARK is open for visiting everyday during daylight time throughout the year!

Address: M. Zdziechovskio st. 27, Sudervë, Vilnius district Phone: +370 687 34244, Email: info@stoneart.lt www.stoneart.lt, www.vilnoja.eu

THE DIRECTION. Algirdas Kuzma, Lithuania

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d n a t s r e d n o hue language t d o o w of

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| K RISTINA RADÞVILAITË |

„While making any unit of furnishing, I slot in creation because it means very much in my life. I work by my heart. A creation elevates a person, so the person involved in the loved activities does not observe the time remained until the end of a working day.

It is a double pleasure because I make my living of my hobby,“ ALGIMANTAS MIKALAUSKAS involved in making piece furniture says.

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Furniture made by A. Mikalauskas decorates „Þemaièiai“, „Provanso dvelksmas“ and „Sorento“ restaurants in Vilnius, the pizzeria and the Karaite restaurant „Kybinlar“ in Trakai, restaurants in Birðtonas and Këdainiai, the Art Gallery in Arezzo (Italy) and abundant private interiors. A cross made by him stands in the center of Vilnius Bernardinai Church. In addition, he has made furnishing for hotel in Provence (France).

At his workshop, furniture of various styles and epochs can be found. Recently, he particularly likes creation and production of ethnic furniture because its simplicity makes it closer to nature and a human. „I find a contour, a shape or a colour of furniture in nature: it is my real inspiration,” A. Mikalauskas says. Ethnomodern African furniture is most frequently made of oak. Produc-

tion of an ordinary table in strict conformity with the set rules is complicated enough, as compared to “dirty” Provence furniture.

To the question about the recent vogues of furniture, A. Mikalauskas answered: „Architects and designers compete in their attempts to make furniture sophisticated to the maximum possible extent. So, modern furniture lacks a uniform style or any links with architecture and aesthetics“. „I perceived a material to be fit for making anything,” the master describes his discoveries after his introduction to pop arts. “A table can be made of various materials, not only of wood. It can be made of stone, other material or materials. Even of fur or leather. “ A. Mikalauskas emphasizes for several times that the material and its quality are of a great importance for him. „I never make kitchen furniture where only cutting and assembling are required for this work. I prefer author’s works,” the master says.

Working with wood of a pear-tree and an apple-tree is most difficult. „To interpret ancient style, wood of oak, ash or birch is usable,” the master shares his wisdom. “Wood of maple and hornbeam should be avoided, because these materials are very “pretentious” – they may shrink or crack. Maple-tree may absorb moisture just upon slight opening of a window. Working with wood of lime-tree is still more difficult. Any movement of air can “correct” the product. Once I was forced to repair furniture of this wood after two years.

It is not simple to adapt such wood“. The wounded hand of the master attests that adaptation of wood not always is an easy task.

If clients to not lack money, they usually order exact copies of ancient furniture of a high residual value. Richer clients choose mahogany. A. Mikalauskas made furniture even of rosewood, the highest-priced wood in the world. This wood has abundant shades; its weight and vicissitude contribute to its beauty. It seems as if fishbones pressed on the wood. It is said to be eternal wood. This wood is a real product and it does not require dyeing. „According to the business alphabet, you must follow wishes of the client, not your own wishes,” A. Mikalauskas says. “Sometimes, I make copies of work or styles of famous masters and sometimes, in absence of designers, I offer various furnishing and thus I am involved in development of the interior. “ | 121

The ceramicists put new crockery to the test at their own kitchen Do you often hear the phrase: „We are very happy“? Ceramists Jurgis and Brigita Firsuni from Kaunas concurrently repeat it, because thousands persons drink coffee or tea using cups created by them. They put any their collection into circulation after its testing at their home only.

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The crockery made by Jurgis and Brigita Firsuni are as if sunshine messengers for our everyday life.

FROM BURNING TO BURNING „Come here, I’ll show you my altar,” J. Firsuni is joking about his furnace. “Its price equals to the one of a good Mercedes; however, such furnace is indispensable, if you are involved in professional ceramics.“ The long-year dream of acquiring a modern computer-programmed furnace was realized three years ago. It considerably facilitated the activities as compared to earlier working with an “amateurish” one that caused abundant defects. „We work for one and a half or two months for loading the furnace. So, we live from burning to burning. Modeling takes three weeks, drawing continues for a similar period and burning lasts for four days,” the spouses (and members of the creative tandem) explain.

The artists very rarely show their workshop to other persons; however, they patiently describe each phase of their long way.

They laugh at clients resenting because of making a single cup for a month. However, another way does not exist: the fur-

nace should not be used for burning a single cup...

On the day of our visit, there were abundant colourful works on all shelves of the workshop of Jurgis and Brigita. The ceramists were going to take part in the spring fair „Kà pasësi...“ /“A good beginning…”/ where visitors from all parts of Lithuania wait for their new works.

FAIRS – AS A REFERENDUM Since the period of their studies at the Art Academy, Jurgis and Brigita take part in Kaziukas Fair in Vilnius, Sea Festival on the seaside and other fairs. There, they meet both new buyers and their long-year clients. „Some of our fans acquire one our work annually. We take part in the said fairs for ten years already, so they have solid col-

lections of our works,” Brigita says. “I’m very glad to take part in such fairs. We have an opportunity of communication and getting to know what should be improved and what should be refused.”

The ceramists carefully listen to the opinions and wishes of buyers; they transfer their wares to the tradespeople or the clients after testing their functionality at the own kitchen.

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Photo: Dþoja Gunda Barysaitë President of Lithuania Dalia Grybauskaitë visited the stand of ceramists at the International Folklore Festival „Skamba skamba kankliai 2010“

THE UNIQUE WORKS IN LITHUANIA Ceramists Firsuni continue the traditions of manufacture. A small workshop, handwork, small quantities of products... Jurgis is engaged in crockery modeling and Brigita decorates them.

Soft brushstrokes are the favourite sphere and the creative flight of Brigita.

Jurgis and Brigita probably are the only artists of Lithuania using majolica technique. In this case, glaze is painted of other glaze at once, so working is very rapid.

It is easy to admire these nice ornaments; however, they appear slowly through heavy work. Creation of the green flower, the recent ornament by Brigita, took three months.

Majolica technique appeared in Italy. It is used by Russian, German and Dutch ceramists.

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„Amateurish using of this technique would be too difficult, because it requires professional skills in the fictile art. The subject of the Diploma Paper of Brigita at the Art Academy was application of this technique,” Jurgis says.

This crockery differs from the traditional ceramic crockery also in the materials used: it is made of massive stone with white clay. It is not available in Lithuania, so they bring it from Ukraine or Poland; they need a half of ton of it monthly.

ART APPEARS AFTER LEARNING THE CRAFT ONLY The ceramists involved in creation of aesthetic crockery for a nice kitchen wonder at the traditional opinion in Lithuania: if you are engaged in pottery, you are not an artist. „There are a craft, the art of the craft

and the art (only after them). If you have not passed two first phases, do not make any attempts to become an artist,” Jurgis asserts. „If you were not a tailor, you cannot be a designer,” Brigita confirms.

There is a paradox: in the opinion of foreigners, crockery made by Jurgis and Brigita seems to be very “Lithuanian” and Lithuanians considers them very “European”; in Lithuania, Jurgis and Brigita often are called craftsmen and after crossing the state’s border they turn into artists... „In the period of studies, Jurgis told me that he dreams about a crockery factory.

He chose studies in Kaunas City because of availability of excellent material facilities for fictile art. For Vilnius artists, por-

Jurgis Firsuni: „Everything starts from this pail.

This mush is sufficient for two days.“

celain and massive stone hardly available and we could work with these materials,” Brigita remembers the very beginning. „As early as in the times of learning at Èiurlionis Art Gymnasium, I knew what I wish. In the beginning, I learned graphic art; I like sculpture as well; however, then I was bitten by the bug of ceramics and the same continued at the Art Academy as well,” Jurgis explains about the chosen way of the life.

The long way from the clay mass to the crockery to be loaded in the furnace.

DID NOT LOSE THE COURAGE BECAUSE OF THE CRISIS For these businessmen, creation is more important than benefit. On the other hand, these artists do not like bohemian life. And they did not lose their courage because of the crisis. „For us, the crisis came to the end on the same day when we got to know about it,” Jurgis tells. “We have abundant works, so we have no time

for immersing in depression or waiting for inspiration.” „What inspiration may be expected by a mower?” They shrug and express no complaints on the hard times. “Up to now, a majority thinks in the Soviet manner when we were used to get everything without any attempts.“ These ceramists never felt a shortage of works. Earlier, they brought many works abroad. Abundant orders were provided by restaurants. So, in many restaurants of Vilnius and Kaunas, cups or other crockery with the brand of the artists (their initials on the bottom) can be found. At present, they have abundant individual orders. „Clients are inert, they follow traditions, are attached to the conventional shapes and colours. We strive encouraging them to notice and accept innovations. Our recent collections are decorated with blue and red motives,” the ceramists say.

The artists like to realize their abundant strange fantasies, such as a cup that turns into a napkin holder after its flipping over or a teapot with two noses.

The Article is reprinted from magazine „Virtuvë“ No. 5

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Marius Mindaugas

DANYS “The cloudlet”, oil on canvas, 100 x 150 cm, 2006

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Presently, M. M. Danys is probably one of the most energetic and successful Lithuanian artists of the recent years.

“The cloudlet has descended in the grassland�, oil on canvas, 95 x 145 cm, 2010

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From the cycle “Reflections of Shadows” VI, paper, pencils; 100 x 70 cm, 2005

“Breathing of the sea”, oil on canvas, 70 x 90 cm, 2009

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It is a paradox that he is such even without rushing into the official Lithuanian art scene, where commercial success and a wide range of admirers from Soviet times until now

“The evening light”, oil on canvas, 140 x 90 cm, 2009

has been evaluated, mildly speaking, very reservedly.

By being a very allrounder and artistic person, in recent times, he is simply obsessed by the passion of painting, which makes him creating more and more new paintings day and night.

From the cycle “Reflections of Shadows” III, popierius.pieðtukas, 100 x 70 cm, 2005

“After raining”, oil on canvas, 110 x 145 cm, 2010

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Triptych “Reflections of that river were visible“, oil on canvas, 145 x 270 cm, 2008

“Poppies”, oil on canvas, 100 x 150 cm, 2009 130 |

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Lithuanian Post has issued a stamp to make a mention of the 100-year anniversary of the Battle of Grunwald www.post.lt