The performance of PASSER SIDC in 2020, like that of many other companies, was affected significantly by the global pandemic. While 2019 was a year that marked the growth of our company, last year enforced certain stoppages.
The market became temporarily stagnant; therefore, a 20% drop in the annual turnover was an inevitable outcome. However, we have withstood quite well to be able to look forward optimistically.
One of the key events for our company last year was joining the Norwegian PASSER Group. That step balanced the production loads in Lithuania, as well as provided an opportunity to expand the engineering department and undertake design work.
Due to the pandemic, a number of projects had to be cancelled or suspended. Despite a slight decrease in workload and longer delivery times for production materials, we managed to maintain the same number of employees. However, we were forced to cancel the services of some subcontractors.
Meanwhile, the markets to which the expansion took place remained the same. We continued our cooperation with Finland, the Netherlands and Belgium. We are also proud of the first steps in the US market where we have implemented a new project.
Notwithstanding slightly lower production volumes, we sought to increase work efficiency and invested in new equipment: 60 welding machines and a 130-ton crane were purchased. We have also started designing a new production workshop, which will mark a huge breakthrough for our production base in Lithuania.
Production capacities also declined slightly due to the global pandemic. While in 2019 PASSER SIDC products were estimated at 3218 tons, in 2020 the figures dropped to 2026 tons. We produced 43 reels, and it was they, along carousels and lifting equipment, that made up the bulk of the production.
We devoted a great deal of effort and resources to one project last year, which, following the implementation of the work, opened up an opportunity for us to successfully enter a new market. We manufactured a 24-meter diameter steel structure that, after traveling to the customer in the US, was covered with concrete and serves as the foundation for a huge gearwheel. The powerful load-bearing metal structure is made of 120-mm thick highest-quality stainless steel and weights nearly 20 tons. It took us two months to manufacture such a giant.
Social projects are included in the annual plan of PASSER SIDC. We supported the Bokso Visata sports club that renewed its inventory, and, in the face of the pandemic, we supplied Klaipėda Hospital with the protective equipment that it was lacking.
Having completed the work of the last year, we have set our goals for 2021. Our course is clear: seeking to be a responsible company that promotes sustainability, we will implement the ESG policy. We also plan to start installing electric or hydrogen motors in the ships under construction and to design and build an environmentally friendly production workshop that meets requirements of the energy efficiency Class A+.
Aivaras Kamas, CEO