Grigeo Klaipėda Fined €2 Million and Ordered to Pay €48.3 Million in Environmental Damages

Grigeo Klaipėda AB, a subsidiary of Grigeo Group AB, has been fined €2 million and ordered to pay €48.3 million in environmental damages following a ruling by the Šiauliai Regional Court on November 6, 2026.

The court found the Lithuanian paper manufacturer guilty of violating environmental protection regulations and causing environmental damage. In addition to the financial penalties, the ruling prohibits the subsidiary from undergoing reorganisation until the court-imposed penalty has been fulfilled.

The court fully upheld the civil claim and ordered Grigeo Klaipėda to pay €48.3 million in compensation. However, the judgment has not yet taken effect, and the company confirmed that it will appeal to the Lithuanian Court of Appeal.

Grigeo Klaipėda does not dispute its liability for the discharge of wastewater but challenges the assessment of the environmental damage and the proposed form of compensation. The subsidiary argues that, under European Union law, the damage should be addressed through environmental restoration measures rather than financial compensation.

The company said its operations continue as usual and that it is meeting its contractual obligations. The judgment applies exclusively to Grigeo Klaipėda and has no direct impact on the operations of other companies within the group.

Financial impact on Grigeo Group

In 2025, Grigeo Klaipėda generated revenue of €49.5 million, including €34.3 million from external customers, representing approximately 14% of Grigeo Group's consolidated revenue.

Its EBITDA stood at €0.3 million, accounting for approximately 1% of the group's total EBITDA.

Grigeo Group said it does not consider the judgment a threat to business continuity, taking into account the subsidiary's contribution to group operations and the financial obligations imposed by the court.

The precise financial impact is still being assessed. Any additional adjustments required will be reflected in the group's 2026 annual financial statements.