Supported one of the largest PET recyclers in Northern Europe

PET Baltija, one of the largest recyclers of polyethylene terephthalate (PET) in Northern Europe, today announces an agreement to acquire a leading Czech fiber producer, Tesil Fibers sro, a spin-off from SILON sro. Upon completion, this transaction will become one of the largest investments by a Latvian company in the Czech Republic.

This vertical integration transaction will subsequently increase PET Baltija’s current revenues by more than 50% while making it an international company. For SILON, the transaction will allow the company to focus fully on the production and development of high-performance polyolefin-based compounds of the highest quality.

Fiber production was part of the traditional operation in Planá, Czech Republic, which dates back to 1966 and is an integral part of SILON sro. 150 employees.

Tesil Fibers is a key supplier for the European market, covering industries and sectors including automotive, hygiene, textile and furniture. It is also known for its high quality standards and last year generated a turnover of 27 million euros with its fiber division.

Salvis LapinsCEO of PET Baltija, commented:
This deal will truly make PET Baltija a major international player for the industry. We recognize and are excited about the impressive growth potential of Tesil Fibers and its dedicated team of professionals. Working closely with the team and other key stakeholders, we plan to evolve the business, accelerate its growth and create real value for all stakeholders. By ensuring the supply of premium recycled PET materials, we will seek to make a significant contribution to the growth of the Tesil Fibers business and give it greater product differentiation. It is also important to note that these developments will also increase the total amount of PET recycled.”

Deimantė Korsakaitė, Executive Partner at INVL Baltic Sea Growth Fund and Chairman of the Board of PET Baltija, added:

“This acquisition agreement reinforces INVL Baltic Sea Growth Fund’s goal of significantly expanding PET Baltija through both organic growth and complementary acquisition strategies. Since our first investment, PET Baltija alone has more than doubled its sales and is on track to complete an organic growth expansion project that will more than triple its food grade PET production capacity. This transaction solidifies the company as a truly international, vertically integrated player committed to sustainability and solving environmental problems. This represents a significant development and results in a company with a turnover of over 100 million euros.”

Šuchrat Saidov, CEO of SILON sro concluded:
After a series of consultations and extensive market research, we decided that the best way to succeed for the fiber division is to find a reputable strategic partner who can continue to grow and develop it. We are pleased to announce that we have found a solution that we believe represents the best possible outcome for fiber production in Planá. The SILON Group will now focus all growth and development efforts on the compounding business.

Both SILON and PET Batlija emphasize that part of this agreement is a detailed handover plan, which primarily aims and ensures that there are no changes to the current service offering that esteemed partners, customers, suppliers, employees or other important stakeholders receive.

PET Baltija
PET Baltija is one of the largest PET recyclers in Northern Europe and the largest PET recycler in the Baltics operating in Latvia. It belongs Eco Baltia, the largest environmental and waste management group in the Baltics. Eco Baltia offers full-cycle waste management solutions, from waste collection and sorting to secondary raw material logistics, wholesale and raw material processing. PET Baltija implements the recycling of used polyethylene terephthalate (PET) bottles and is an industry leader in the Baltics. The recycling product portfolio includes high-quality PET flakes and granules (including food packaging), almost 100% of which are exported.

In 2021, Eco Baltia Group’s pro forma earnings reached c. €150m, doubling from €75m in 2020, partly supported by the acquisition of a leading Lithuanian waste manager Ecoservice in August 2021. The group employs over 2,000 people in Latvia and Lithuania with leading companies in the existing portfolio including PET Baltija , Eco Baltia Vide, Ecoservice, Latvijas Zalais punkts and Nordic Plast.

Eco Baltia’s shareholders are the private equity fund INVL Baltic Sea Growth Fund (52.81%), the European Bank for Reconstruction and Development (30.51%) and the company’s management (16.68%).

INVL Baltic Sea Growth Fund

With a total volume of EUR 165 million, the INVL Baltic Sea Growth Fund is the leading private equity fund in the Baltic States with the European Investment Fund (“EIF”) as the anchor investor.

The EIF has pledged €30 million with support from the European Fund for Strategic Investments, a key element of the Investment Plan for Europe (or the “Junker Plan”), as well as funding from the Baltic Innovation Fund, the “Funds of Funds” initiative implemented in Cooperation with the governments of Lithuania, Latvia and Estonia was developed. The aim is to increase capital investments in small and medium-sized enterprises with high growth potential in the Baltic States.

The Fund seeks to assemble a diversified portfolio of companies targeting majority or significant minority holdings, with tickets from $10m to $10m.

The fund focuses in particular on the Baltic States and the neighboring regions of Poland, Scandinavia and Central Europe. The fund has so far invested in six companies in the healthcare, civil engineering, environmental management (plastics recycling and waste management), veterinary and manufacturing of cosmetics and hygiene products sectors.

The fund is managed by the Baltics’ leading investment management and life insurance group, Invalda INVL. The group’s companies manage pension, mutual fund and life insurance commitments, as well as individual portfolios, private equity and other alternative investment products. More than 290,000 clients in Lithuania, Latvia and Estonia, as well as international investors, have entrusted the management of assets worth over EUR 1.7 billion to the group’s companies. The group has a track record of over 30 years in managing private equity investments and building leading market players in the Baltics and the Central and Eastern European region.


SILON started its activities in the 1950s with the production of polyamide filament yarn and has constantly aligned its business model to innovation and customers. After expanding the product portfolio to include technical compounds, realigning the fiber business to technical applications and introducing short-spun fiber technology using post-consumer PET flakes as a raw material, the name SILON has always stood for quality, safety and reliability.

SILON sro achieved total sales of EUR 150 million in 2021 and currently employs more than 400 people in Plana nad Luznici, Czech Republic. Today, SILON develops, produces and sells performance compounds based on polyolefins for applications in the construction, energy, hygiene and automotive industries as well as for general industrial applications.

Person entitled to information:
Deimantė Korsakaitė
Executive Partner of INVL Baltic Sea Growth Fund
Email: [email protected]

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