Valmieras Stikla Skiedra obtains loan for new facility

Latvian fiberglass manufacturer Valmieras Stikla Skiedra (VSS) is to invest a EUR 36 million loan from Hansabanka in the building of a new facility to produce fiberglass textiles, the bank“s public r…

Latvian fiberglass manufacturer Valmieras Stikla Skiedra (VSS) is to invest a EUR 36 million loan from Hansabanka in the building of a new facility to produce fiberglass textiles, the bank“s public relations manager Arturs Eglitis said. According to VSS, the market has developed considerably in the past few years, and the company needs to respond by raising output. To date, the firm has sourced fiberglass from other manufacturers to keep pace with demand. Building a new fiberglass textile plant would eliminate the need to buy in fiberglass as well as cutting production costs, making the firm more competitive on the international market. VSS has invited bids from builders for the new complex; construction of the facility is set to begin in July 2005 for completion in three years. The new facility is expected to bring 100 new jobs. “The new project will ensure the company“s sustainable development in coming decades, which is the most important because to stop means the beginning of the end,” said VSS“s president Andris Oskars Butans. “We are pleased that Hansabanka is the cooperation partner to Valmiera Fiberglass, a company of major importance to Latvia,” said Hansbanka board member Maris Mancinskis. The market is developing rapidly and Hansabanka is pleased that VSS has appraised its development opportunities and decided to build a new fiberglass complex, which will provide it with new advantages and improve competitiveness not only in Europe but also on the world market, he said. VSS is one of the largest industrial enterprises in Latvia; its shares are traded on the Riga Stock Exchange“s Second list. The company has tripled turnover since privatization in 1996. The company“s net turnover in 2004 was LVL 26.77 million and profit totaled LVL 1.95 million.