The total value of the project amounted to more than EUR 1 million, almost half of which was financed with the EU funds.
Sigita Skrebė, Head of the Business Productivity Projects Division of the Innovation Agency, notes that the aim of this measure is to encourage micro, small and medium-sized enterprises (SMEs) to invest in technology audits, ensure their investment in the introduction of digitisation technologies for production processes, and boost productivity and international competitiveness.
“Through this measure, some companies have moved from manual to automated production, which has led to a fundamental change in their processes and increased their capacities. The purchase of equipment has enabled some companies to produce higher volumes of orders, while others have used the funding to purchase equipment to produce products tailored to the needs of each customer,” the expert points out.
Thus, Ms Skrebė encourages other Lithuanian market players to participate in the calls for proposals launched by the Innovation Agency: “Participation in the projects not only has direct benefits in terms of developing an innovative product, acquiring equipment or creating an e-shop, but also indirect benefits in terms of encouraging companies to review and improve their processes, customer journey and product quality. This has a positive impact on both the financial performance of companies and the growth of the Lithuanian economy.”
Investments will help follow the Green Deal
Presenting the changes that have been implemented, Ramutė Elinskienė, Director of Raguvos baldai ir Ko, points out that the introduction of innovative solutions has not only resulted in increased productivity, but also in preservation of natural resources, saving energy and ensuring a circular economy. The allocated funds of EUR 407 000 have helped the company to implement crucial changes.
“We have acquired a next-generation UV automated gloss surface painting line with the streamlined paint drying process, thus allowing us to use a wider range of paints, saving on cost and ensuring that we can have multiple suppliers,” says Ms Elinskienė, adding that the company has also acquired an automated processing centre for milling and drilling of parts, fitted out the furniture assembly premises, installed two automated assembly and packaging lines, automatic machine tools and a carton cutting machine, which enabled in-house packaging production, thus ensuring both the saving of resources and sustainability.
Ms Skrebė, an expert at the Innovation Agency, points out that the transition of leading companies to a climate-neutral economy and the saving of resources is important both for the promotion of sustainability principles and for increasing the competitiveness of the company in domestic and foreign markets.
“Customers are increasingly concerned about how a product is manufactured and what impact it has on the environment. On the other hand, companies that are already moving towards a climate-neutral economy are gaining the competitive advantage, since the green economy is one of the EU priorities,” comments Ms Skrebė.
High quality standards and customer trust
UAB Raguvos baldai ir Ko was established in 1990. Starting with just a few employees, the company, which has been in existence for more than 30 years, established a subsidiary UAB Kamė in 2013 and expanded its team to almost 200 people.
“When we first started manufacturing bathroom furniture, it was a complete novelty in Lithuania. However, we have been working with designers to develop new models, trying to adapt them to the new and more diverse designs of washbasins that are becoming increasingly popular on the market. Finally, with the opportunity to participate in international exhibitions, new markets opened up, and over the years, the business of Raguvos baldai expanded and became known not only in Lithuania, but also abroad, and in order to provide individual service to the customers, the shareholders of the company established a subsidiary,” shares Director Ms Elinskienė.
Currently, the company produces over 20 000 pieces of bathroom furniture per month, which are delivered not only to Lithuanian homes, but also to 18 different countries. In total, the company has more than 200 customers worldwide.
All products of this bathroom furniture manufacturer are made and assembled in the factory of the company: from the machining of the parts to their assembly and distribution to customers. Ms Elinskienė also emphasises that the processes are carried out in accordance with the highest quality standards and taking into account the expectations of each customer, as quality, long-term relationships and customer trust are some of the most important principles of Raguvos baldai ir Ko.
Vision for the future – strengthening the position in Scandinavia
The company also invests in innovation every year: “We try to invest in the modernisation of production facilities as much as possible, and we pay a lot of attention to painting technologies, because painted products are the distinctive feature of our company,” says Ms Elinskienė, adding that EU investments and cooperation with the Innovation Agency help the company to maintain the high quality of its products, as well as to stay innovative and competitive. “Digitisation of Industry” is not the only measure that the company has taken advantage of throughout its history.
“Cooperation with the Innovation Agency allows us to improve by acquiring next-generation equipment and adopting advanced technologies. It is a very significant financial support and our cooperation is simple, clear and business-like,” says Ms Elinskienė.
According to her, the company aims to invest consistently not only in the production base, but also in the professional development of its employees, giving each member of the team opportunities to grow. Speaking about future plans, the director of Raguvos baldai says that the company has ambitious goals: although it does not intend to expand geographically in the near future, it will strengthen its operations in the existing markets.
“The goal is to remain the market leader in the Baltic states, to become one of the strongest suppliers of bathroom furniture in Scandinavia, and to continue to expand our customer base in our current Western European markets. The goals are ambitious, but by working consistently and developing new bathroom furniture, participating in and attending international exhibitions, investing in upgrading equipment, we aim to achieve this in the next three years,” shares Ms Elinskienė.
In April, the company also plans to launch an updated catalogue featuring three new series of bathroom furniture. Two of them will be made of the highest quality materials – natural wood veneer with oak elements.
“The idea was to create a series with a timeless, long-lasting design, while at the same time using the highest quality materials. This will allow customers to enjoy these products in their homes for years to come,” notes the director of Raguvos baldai ir Ko.
The “Digitisation of Industry LT” measure is implemented under the Programme for the EU Funds’ Investments 2014–2020.
