Narbutas company group, specializing in the production and sale of office furniture, is set to start renovations of its manufacturing site and the construction of a new building in Ukmergė. This will expand the company’s current production area by additional 21,000 sq. m, with the total production area reaching 57,000 sq. m, and will also double the company’s production capacity.
“We are planning to invest 18 million euros in production alone,” said Petras Narbutas, owner of UAB Narbutas International.
Building completion mid-2021
The new building extension, the construction of which will cost around €10 million, will accommodate furniture production and metal sheet processing facilities. It will also house storage facilities for keeping raw materials and finished products.
The building is expected to be completed by mid-2021. After Narbutas reaches its planned capacity, it will be able to produce 90,400 desks (the current figure is less than 45,200), 79,900 chairs (the current output is 39,900), among other pieces of furniture.
Revenue expected to increase to € 200 mln in coming years
Narbutas generated a revenue of €99 million in 2019 and it is expected to increase to €200 million in the coming years.
“Last year, we had enough orders to exceed the €100 million turnover limit. However, our production was unable to keep up with the orders and we had to move them to January,” explained Mr. Narbutas.
According to him, the new facility will allow them to avoid the so-called “bottlenecks” in production. They will also have an opportunity to deploy new technology that the production site currently lacks and thus is forced to outsource some of the production functions.
If the company continues to grow at a similar pace, after this phase of expansion, production capacity will meet the demand for about a couple of years.
Narbutas plans expansion to USA and other countries
“When you reach the peak in the face of an approaching crisis, you have to choose between slowing down the production and expanding. At first we wanted to be more careful and built a 7,000 sq. m extension to the current 30,000 sq. m factory. However, considering the current growth, it is next to nothing. For this reason, we needed another 20,000 sq. metres that the new extension will provide,“ said Mr. Narbutas in his earlier interview to Verslo Žinios. Currently, the largest markets of Narbutas International are the United Kingdom, France, Germany, and Lithuania. Further expansion is planned in the US and new markets such as Spain, Portugal, Australia, and Latin American countries Peru and Chile.
The sales growth of Narbutas office furniture is also determined by the fact that the company is constantly adding new products created by Lithuanian and foreign designers to its range.