The Latvian government approved a 40% tax rebate for the new plant of fiberglass producer Valmieras Stikla Skiedra (VSS) on 6 September 2005.
The company is set to invest LVL 24.3 million (EUR 34.57 …
The Latvian government approved a 40% tax rebate for the new plant of fiberglass producer Valmieras Stikla Skiedra (VSS) on 6 September 2005. The company is set to invest LVL 24.3 million (EUR 34.57 million) in the project. The Latvian Economics Ministry will now draw up an application to the European Commission (EC) on the planned support to the investment project. The starting date for implementation of the project will be set as the date that a positive decision is received from the EC. The project will have to be completed within 15 months. Information from the Economic Ministry suggests that LVL 16.5 million will be spent on equipment and technologies for the new plant, and LVL 4.6 million will be invested in the building and installations. According to the ministry“s estimates, in the ten years following the completion of the project the Latvian state will collect an additional LVL 41 million in tax. With the new plant, the company expects to increase exports to LVL 39 million in 2007, to LVL 44 million in 2010, and to LVL 52 million in 2015. In 2004, VSS exported products to the value of LVL 25 million. In 2005, the company is targeting profit of LVL 2.48 million, up 27% on 2004, and sales up 23% to LVL 32.83 million. In 2004, VSS posted LVL 1.955 million in audited profit, 2.2 times more than in 2003, on turnover of LVL 26.771 million.