UAB „Diab“, a subsidiary of the Swedish-owned corporate group known for producing foam materials for composite structures, has decided to wind down its operations in Šiauliai by the end of 2026, according to official documents submitted to the Registrų Centras. The company, which originally commenced production in a facility valued at 8 mln. Eur in the sources back in 2019, points to fierce competition with China, soaring raw material costs, and persistent supply chain disruptions as the core drivers behind the closure.
Financial Decline and Shutdown Timeline
The manufacturing plant’s financial performance shifted notably between 2024 and 2025. According to company filings, the business wrapped up 2024 with 12 mln. Eur in revenue and a net profit of 1,6 mln. Eur, but subsequently suffered a 1,7 mln. Eur loss in 2025 as revenues contracted to 10,8 mln. Eur. Despite the losses, the firm’s equity met capital adequacy requirements. Explanatory notes filed with the Registrų Centras reveal that the board resolved last December to completely terminate operations by the end of 2026 and vacate the factory premises no later than the end of March 2027.
Did You Know? Before moving into its purpose-built facility valued at millions in Šiauliai in 2019—where management additionally invested over 1,5 mln. Eur into equipment—the company operated across two separate locations.
Operational Pivot and Exit Provisions
To facilitate the wind-down, the company has established 2,2 mln. Eur in provisions designated for severance packages, factory cleanup, legal fees, document archiving, and other necessary closure expenses. Prior to the decision to shutter the facility entirely, public reports indicated that the business had attempted to pivot its production away from wind turbine manufacturers toward the marine transport segment after losing its competitive footing against Chinese rivals.
Frequently Asked Questions
Why is the Šiauliai factory closing?
According to documents filed with the Registrų Centras, the closure stems from an inability to maintain competitiveness with China, compounded by high raw material prices, ongoing supply chain disruptions, and logistical problems.
When will the factory completely vacate its premises?
The company board decided last December to cease operations by the end of 2026 and completely clear out the manufacturing facilities before the end of March 2027.
How much were the financial reserves set aside for the closure?
The company formed 2,2 mln. Eur in provisions to cover employee severance payouts, facility restoration, legal expenses, and document archiving.
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