Valmiera sees no owner change in short term

Latvian Valmiera Glassfibre management said on 10 July it did not expect its German owner to sell his stake in the short term, although it recently indicated it was disappointed with its US$ 15.3 mill…

Latvian Valmiera Glassfibre management said on 10 July it did not expect its German owner to sell his stake in the short term, although it recently indicated it was disappointed with its US$ 15.3 million investment. Valmiera“s 49-percent owner German Glasseiden GmbH Oschatz saw its CEO and Valmiera council member Jurgen Preiss-Daimler tell the Valmiera AGM he was ready “to part with the company”. Preiss-Daimler was not available for comment. “I do not see anything changing in ownership structure in the short term. There are no objective reasons to support Mr Daimler“s speech at the shareholders“ meeting, where he said he was disappointed with his investment,” Valmiera Finance Manager Imants Saulitis told Reuters. Valmiera also said that the company“s performance could not be behind the change in assesment. “I think that we will launch our new production facility in autumn together and businesss will continue as usual, but what long-term conslusions could be in the pipeline remains to be seen with time,” Saulitis said. Valmiera plans to complete installation of a US$ 10.73 million glass oven this September and start operations in the fourth quarter. The new oven would allow it to double its glass fibre volumes to an annual 15 million tonnes. “Mr Daimler did not elaborate and I can only interpret it as his feeling that he is not valued as a large investor and treated with respect,” he added. Valmiera“s AGM approved a net profit target of LVR 128,400 for 2001 on a turnover of LVR 15.1 million, to come after a small LVR 80,143 loss in 2000, mainly due to the weak euro. Around 70 percent of Valmiera sales are generated in euro-zone countries. Valmiera shareholders also approved a closed share issue of 2.17 million shares at par value of one lats to be taken by Glasseiden for their material investment into the comany during 2000. Valmiera“s current equity capital stands at LVR 15.9 million.