UHB Group’s portfolio is expanding in a new direction: road infrastructure. The Group’s company UHB Service has taken over the operations of “Kelio ženklai” in Pilviškiai (Vilkaviškis district), including the brand, production equipment, existing contracts and technological know-how.
This step allows us to immediately continue activities at full capacity, based on the established business model and experienced team. The road infrastructure segment is characterised by clear technical standards, stable order flows and long-term projects, making it a natural addition to the UHB Group portfolio.
The UHB Group industrial complex already operating in Pilviškiai includes a logistics and packaging terminal, compact fertiliser production and a big bag factory. The new direction of activity strengthens this infrastructure and allows the Group to expand the range of solutions for infrastructure projects.
“It’s important for us to invest in segments where we can create long-term value. The road infrastructure market is characterised by steady order flows and clear quality requirements – this fits very well with the business strategy of UHB Group,” says Kęstutis Pakalnis, Chairman of the Board of UHB Group.
Read more about this decision and the UHB Group’s direction in the article in Lithuanian.
UHB Group investments are aimed at the development of Lithuanian regions. One of the most striking examples is Pilviškiai (Vilkaviškis district). The UHB Group Board – Tomas Kropa, Ugnė Makarauskienė and Kęstutis Pakalnis as well as the entire management team of the Group coordinated decisions, thanks to which the territory turned from an abandoned area into a functioning industrial and logistics centre in just a few years.
Almost 11 million euros were invested in the revitalisation of the territory, about 9 hectares of infrastructure were put into operation, today a loading terminal, a compacted fertiliser factory and a modern big bag line operate here.
Kęstutis Pakalnis, Chairman of the Board of UHB Group, emphasises the strategic role of these decisions: “There are many people in the regions who want and are able to work and economic activity can be revived only with a clear strategy and long-term vision. Here, value is often created faster than in big cities, because costs are lower and the competitive environment is more stable.”
Companies operating in Pilviškiai have created about sixty jobs, contributing to stable employment for local residents, and have also strengthened the function of the entire Vilkaviškis as a regional industrial and logistics centre promoting broader economic activity in the region.
The further vision includes the development of warehousing capacities and the installation of a second railway track, which will significantly increase transport throughput.
Read more in Lithuanian at vz.lt.
UHB Group has acquired 75 percent of UAB Agronovus, a company operating in Širvintos district, and is launching a new development project under the name of UAB UHB Bag and the production is being transferred to Pilviškiai (Vilkaviškis district), where one of the most modern big-bag factories in Europe will be established.
It’s planned that the majority of UAB UHB Bag’s production – about 90 percent – will be allocated to sales, in cooperation with fertiliser manufacturers and other industry partners in Europe and beyond. The rest will meet the needs of the UHB Group itself, ensuring an uninterrupted fertiliser packaging chain.
Work in Pilviškiai is planned to begin in mid-June, and the factory should reach full capacity in July. The project is based on the experience gained at the Samarkand NPK plant in Uzbekistan, which has already implemented a modern factory within a factory concept – from polypropylene fabric production to the final product.
The new line in Pilviškiai will be even more modern and efficient. It is important to note that all produced big-bags will be fully recyclable, thus contributing to a more sustainable industry.
“The most important things in the market today are speed and quality. Our decision to produce big-bags ourselves not only allows us to ensure uninterrupted supply to existing customers, but also opens the door to a wider European industrial market,” notes Kęstutis Pakalnis, Chairman of the Board of UHB Group.
Read more about the project in the Verslo žinios article in Lithuanian.
The UHB group ended 2024 with an joyful and festive gathering: the guests got together at the Pilviškiai loading terminal managed by UHB Service and were presented with the progress made during the second stage of modernisation of the terminal.
In the rapidly changing terminal, in less than half a year, the storage area was expanded by another 6,000 sq. m and special attention was paid to the renovation of the logistics infrastructure. New road and railway scales, passage and passage nodes were purchased and installed. According to Andrius Ivaška, the head of UHB Service, all these upgrades serve both to increase the company’s capacities, as well as to the convenience of customers and the speed and modernisation of services: “Even more control, clarity and simplicity – after introducing new technologies and modernising processes, all loading takes place quickly and smoothly. This is especially convenient for customers, because technological capabilities now allow us to be extremely flexible, quickly respond to any order and execute it promptly.”
As the mayor of Vilkaviškis district Algirdas Neiberka said in his welcoming speech, it is worth celebrating not only the jobs being created, the growing investments in the region but also the speed and vigour of the modernisation being carried out. He also wished that the growing terminal would achieve its goals and make the district famous.
Already in the first stage of modernisation 5.6 million euros were invested in the Pilviškiai terminal and in the second stage another 2.5 million euros were added to the investment. And this is just the start: according to Kęstutis Pakalnis, the head of the UHB Group, who welcomed the guests, the total investment in the Pilviškiai terminal should reach about 15 million euros, not only modernising it but also expanding the range of services provided.
“Two years ago, having acquired this abandoned territory and envisioning many big things in it, we immediately emphasised that we are the investors who not only plan a lot but also do a lot. Therefore, today, celebrating the end of the second stage, we continue to work intensively so that in the near future we can invite everyone to the grand opening, which will mark the beginning of the largest land terminal in Lithuania, which will make the entire Vilkaviškis district famous,” – K. Pakalnis has no doubt.
On the 20th of June UHB Group invited their team as well as guests to gather at the Pilviškiai terminal managed by UHB Service.
Two years ago the renovation of 2,4 ha began and thus far a half-kilometer railway section was modernized, a 6,200 sq. m cargo storage area covered with asphalt and a new packaging workshop was built and equipped with modern technology.
The most recent renovation – using innovative materials and solutions administrative and domestic premises were completed paying the most attention to employee comfort: from changing and rest areas to modern and efficient office workspaces.
Thanking the whole team that contributed to the terminal not only with their hard work but valuable ideas as well, UHB Group head Kęstutis Pakalnis emphasized that the renovation is being carried out very consistently, thoughtfully and in accordance with the long-term strategy and vision: to create one of the most modern and innovative terminals in Lithuania.
“After moving to this area, we have already invested about 5.6 million Eur in two years and we are planning another 2.5 million Eur investment during this year alone. And in total, in the long-term perspective, we plan to increase our investment to 15 million Eur”, said the head of the group K. Pakalnis.
The terminal provides loading, storage and logistics services for reinforced concrete products and harmless bulk chemical products and is constantly expanding and growing. Also, after the UHB group established a joint venture together with an important global fertiliser producer – the state of Uzbekistan and established a Trade House through which as well as through Pilviškiai terminal all of the Uzbek fertiliser will reach Europe, so its importance has increased significantly and will continue to increase in the future.
As the mayor of Vilkaviškis municipality Algirdas Neiberka and director of administration Vitas Gavėnas, who visited the event, said: UHB Group is currently one of the largest investors in Vilkaviškis region, with its activities and investments not only creating jobs in the region, Pilviškiai but also becoming an example of a success story for other businesses.
UHB Service are continuing to renovate and modernise their loading terminal in Pilviškiai, Vilkaviškis district.
Acquired in 2022 the abandoned territory of a bankrupt company with a non-functional railway line, that wasn’t used for 19 years, has changed significantly during the last year and a half.
The modernisation of the 500 meter long railway line and the first carts on it as well as the bulk cargo loading works were all stage one of the renovation.
Last year a 6.200 sq.m. of paved cargo storage area and a new packaging facility with modern equipment were built.
Recently an administration building was completed focusing on employee comfort: from changing and rest areas to modern and ergonomic office spaces.
According to UHB Service CEO Andrius Ivaška the renovation and investments thus far increased the efficiency of the terminal two fold.
“We have invested around 3 M € to the terminal renovation thus far. And the second stage of investment will start shortly. During this stage the storage area will be increased and the terminal will be equipped with the most modern road transport system. The number of employees will grow as well: the company currently employs about two dozen people and in the future we will need twice as many.”
The development of Pilviškiai terminal is led by a vision to become one of the most innovative and modern terminals in Lithuania. Also, operational sustainability buzzword, but as a real strategy to ensure that operations at the terminal use as little fossil fuel as possible. For that purpose, modern, automated equipment, electric conveyors, lines, conveyors are being built – everything that contributes to saving energy resources, making operations more efficient and using resources as smartly as possible.
UHB GROUP won an award in 2023 for investments in Vilkaviškis district and effective partnership of UHB SERVICE with the municipality. During the Vilkaviškis district business forum.