Since its establishment in 2007, UAB Brolis Timber has and still does produce environmentally friendly wood products for interior and exterior use. Having tested and introduced a variety of modified wood to the market, the company stopped at thermowood (Thermowood®) as the best option, and it gradually became the dominant part of the company’s assortment.
During the pandemic, with a disruption in supply, the company decided to move towards production and set up the first certified thermowood plant in Lithuania in 2022 in the territory of Kaunas FEZ. This plant would be able to meet the needs of the country’s consumers in its production volumes.
It is true that the carefully arranged plans were significantly disrupted by the world’s realities of last year: the prices of construction materials and work have risen drastically, and energy costs have risen to unprecedented heights.
“In total, we invested €7 million instead of the planned €6 million, thus the project’s budget was significantly exceeded. However, we had no choice — the construction of the plant had already started, and contracts were signed. So, we made every effort to start operations in the plant as soon as possible, so that the investments would begin to pay off, and we covered the budget deficit with our own funds, reducing all possible costs of the company,” says Ms Vizbaraitė of the difficult situation.
Moreover, the war and inflation have had an unavoidable impact on the market, with sales slowing, showing a particular decrease in purchases by exporting producers. Thus, having recorded a growth of 81% in 2021, Brother Timber ended 2022 with a 7% growth. Entrepreneurs note that the war has had the greatest impact on supply chains in the wood industry: most wood producers and sellers in the Eastern European region had to reorient quickly, no longer being able to buy from Russian and Belarusian suppliers, which led to a massive crowding of enquiries to Scandinavian producers.
“In our case, we have always purchased raw materials from responsibly managed, PEFC and FSC-certified Scandinavian forests, but we had to find new suppliers because now we need a different type of wood — not thermowood, but simply raw wood. Scandinavian suppliers with limited quantities faced unexpectedly high demand, the need to select customers, and, of course, a tempting opportunity to raise prices,” says the CEO of Brolis Timber, claiming that the challenges of 2022 were exceptional and have not been seen since the 2009 crisis.
Everything can be done when there are good partners and a good team
On the other hand, according to Ms Vizbaraitė, the difficulties that fell on them also highlighted the team’s focus, motivation, and high level of maturity: “Over the years, we have realised that everything is done in a simple way. When rationally planned, persistently pushed, and with good partners and a team, even large projects, even in extremely difficult circumstances, are easily overcome. As they say, ‘you can do it!’”
So, accepting the situation as a reality, the company did everything they could: abandoned the least relevant production chain — automated board sorting (for the time being, this work is done manually), wherever it was possible, they saved money; the regular warehouse practically only did custom-made orders; negotiated with its partners and contractors on the payment schedules.
Result: the new thermowood production plant, which started activities before Christmas, is currently operating at full capacity, without stopping at night or on the weekend, and the company has more orders than it can produce.
Investing in large windows in production — pays off
The buildings of the new Brolis Timber factory complex — storage and production facilities —cover 2,500 m3. The existing production capacity is 12,000 m3 of thermowood per year. In the future, there is a reserved plot for future development, but for now, the company isn’t talking much about it and says that they must first restore their resources after construction.
The architecture of the new factory became a reflection of their value, in which the most important accents were given to humanness and naturalness: “Yes, we set the tone for the architecture, and our designers Erinar interpreted it perfectly. Why not let people enjoy daylight and meadows when working in production? After all, the investment in large windows fully pays off — working in such an environment gives a much better sense of well-being, and the windows do not hide our orderly and well-functioning production. Wood in the facades is also a natural choice. We know that thermowood does not rot, and maintains stable dimensions, so it is perfect for such buildings. We left it completely natural, uncovered, allowing it to peel off and organically fit into the natural landscape. It has been proven that a person feels much better psychologically if a wood finish is used in their environment. So why not?”
In total, there are four wood and furniture companies in the territory of the Kaunas FEZ: since 2019, Freda II, a company owned by Freda, has been operating; starting activities in 2018, JSC Fitsout provides furniture and interior solutions for business; bathroom furniture manufacturers UAB Kamė have been operating for many years already in the territory.
Currently, the Kaunas FEZ has attracted 53 foreign and Lithuanian capital investors operating in the services and manufacturing sectors, applying advanced technological solutions, and developing innovative products. From the first investor in 2005 to today, more than 9,100 jobs were created in the territory of the Kaunas FEZ and more than €1.35 billion of direct investment was attracted.