AS Expobank signed agreements on the largest refinancing project so far for a production company outside Riga – credit liabilities worth 2.2 million euros were refinanced for the company SIA V.L.T., operating in Valmiera.
“Funding for refinancing of liabilities, continuing or developing the business is necessary not only for companies in Riga, it is important to support also regions, especially when we speak about a successful production company,”
– says Vasilijs Karpovs, Member of the Board of AS Expobank.
“I wish to particularly emphasise the ability of SIA V.L.T. to produce ecological packaging, which becomes increasingly more demanded worldwide. We are pleased that companies appreciate the bank’s individual approach to each customer and choose us as a reliable cooperation partner, which, in addition, offers favourable financing conditions.”
“We selected refinancing of the existing liabilities, because cooperation with the previous bank started to “stagnate”,”
– says Jānis Mūrnieks, the Production Manager of SIA V.L.T.
“We want to develop, invest in new products and differentiate our assortment. Expobank specialists understood and supported our desire to develop and offered very perspective cooperation conditions.”
“The desire to differentiate our assortment is very simple – currently, we have acute shortage of raw materials. Waste sorting sector in Latvia, Baltics and even Europe currently is unable to meet the market demand and, at the same time, provide us with the required amount of recyclable paper. In the last year, the market changes are very noticeable due to the daily restrictions. More packaging ends up in retail sales and later in households, instead of staying in warehouses. This aspect highlights the problem that we are yet far from efficient sorting of household waste, because residents just throw paper away in household waste or burn it, instead of sorting and transferring it for recycling,”
– adds J.Mūrnieks.
SIA V.L.T. was established in 1992, starting its operation as a retailer of agriculture machinery. In 1998, the company acquired equipment for production of egg boxes and egg transportation pallets from the Finnish equipment manufacturer Huhtamaki Oy, thus starting the manufacturing of egg packaging. In the subsequent years, also other machines were acquired, the company becoming the largest egg box and egg transportation pallets producer in the Baltic states. Currently, SIA V.L.T. produces more than 40 million units of products annually, out of which approximately 80% are made up by egg boxes, and 20% – egg transportation pallets. Approximately 85% of the production is exported to Poland, Lithuania, Estonia and Germany. The main raw material in the production process is cardboard packaging, newspapers and various types of paper. The company works in four shifts, employing in total up to 50 employees.
As indicated at the company, COVID-19 pandemic has rapidly promoted the tendency to cook at home more; therefore, the consumption of eggs has increased globally , which, in its turn, promotes the demand for egg packaging. Moreover, consumers pay increasingly more attention to packaging of food products, which promotes that manufacturers gradually abandon plastic egg packaging and choose more environment-friendly and recyclable packaging.
AS Expobank is one of the oldest banks in Latvia, established in 1991 and celebrating the 30th anniversary this year. At the beginning of 2019, the Bank completely changed its operating strategy and introduced a new business model, starting to increase its market share in the Latvian financial market. This marked a new development start of the Bank, which envisages a competitive financing offers to corporate clients, term deposits for individuals, brokerage services, as well as introduction of innovative financial technologies.
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