Neo Group trusts in Ruukki’s panels

Jan 05, 2018

Neo Group produces polyethylene terephthalate (PET) granules, which is the raw material for plastic used for packaging material such as mineral water and soft drink bottles. Neo Group is a Lithuanian company and has a market share of around 10% of the European PET markets. The company aims to grow their market share to 14%. This requires a new production facility.

A brand new extension to Neo Group’s factory is to be built in Klaipeda, Lithuania on the Baltic Sea. The extension will enable Neo Group to increase production by 50% and, when completed, will look exactly the same as the existing factory built in 2007. The extension will also feature the same technology and production process.

Protection for production

A new 50-metre tall building stands out in the landscape and is highly visible from the main road. The walls of the building are constructed using sandwich panels made by Ruukki. Ruukki delivered panels totalling 9,000 square metres, which corresponds to more than a size of a football pitch

Ruslanas Radajevas, Neo Group’s Operation Director, said that the biggest challenge in the entire construction project was the tight schedule. Construction on an empty site started in May 2016 and production is planned to start in May 2018.

“Naturally the main function of the building is to enable production and to protect the process and technology inside. We needed a building that is worry-free for us. Our job is to run production, not to worry and spend time considering how the building functions,” said Ruslanas Radajevas.

The investment in production machinery and technology is greater than investment in building the building itself. For the customer, the most important consideration was ready-to-install panels that can be quickly put into place.

Only the best for the walls

Ruukki supplied both the blue and grey coloured sandwich panels with a Pural special coating. The coating was added because the building is located in a coastal area, where the salinity in the air is moderate and the special-coated panel will provide better resistance in this environment. Due to wind load from the sea, two types of panels were also installed on the building.

“We selected the best available product. Ruukki’s deliveries went well, because I have not received anything negative feedback. If there were something wrong, I would have certainly got to know about it,” stated Ruslanas Radajevas.

Production in the new plant will start in May 2018, and further extensions of the plant thereafter are not currently known. Ruslanas Radajevas says that as with any company, they follow the market situation and respond to the changes if needed.

Today Neo Group employees about 180 persons. After inauguration of the new part, the headcount will increase to 200. Neo Group has customers all over Europe, but the main customers are in Lithuania and Germany.

Ruukki’s delivery:
- Sandwich panels, 9000 m2 + dimensioning as service

Main contractor of the project is AXIS Technologies. 

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