Luminor Bank has granted EUR 1.7 million to crop production company SIA Tēraudiņi for the reconstruction of a grain dryer and purchase of new equipment. This will make the drying process of traditional crops such as rye, wheat, and oats more efficient.
With the financing granted by Luminor, Tēraudiņi plans to implement a dryer construction and reconstruction project, the total cost of which is more than 2.3 million euros. The project has also attracted co-financing from the Rural Support Service in the amount of 662 thousand, and the dryer improvements will be implemented together with SIA Ungurpils Grauds. In addition to the reconstruction works, new technical solutions will also be introduced, for example, the grain dryer will be equipped with a recuperation system. The improvements will allow the grain silos to store 5,000 tons of grain. An additional grain intake pit, where grain pre-cleaning will be performed, will allow to increase the processing capacity, reaching 100 tons per hour.
“Last year was a successful one for the agricultural sector, with one of the largest increases in incomes in the last decade. Last year, there was also a high-quality harvest in crop and grain farming, which was a good precondition for companies to continue investing in the improvement and development of economic activity this year. We are pleased to provide support to SIA Tēraudiņi for the modernization of the grain drying process in order to increase the company’s operating capacity. We are ready to support other agricultural companies in their development plans with good conditions for them to set new productivity records in the future,”
-says Ilze Zoltnere, Head of Luminor Corporate Department in Latvia.
SIA Tēraudiņi manages approximately 1,235 hectares of agricultural land, of which approximately 789 hectares belong to the company. The company grows such agricultural crops as rye, winter and summer wheat, buckwheat, summer barley, potatoes, and oats. Most of the produce is transferred to local companies, such as LPKS VAKS, Aloja Starkelsen, and ADS Baltic. Last year, the bestselling products were potatoes (3,723.53 tons), rye (1,651.66 tons), and winter wheat (1,581.07 tons).
“As the demand grew and yields increased last year, we decided to implement a project that was planned for several years – the construction and reconstruction of a new dryer, which will allow us to dry the grain ourselves, instead of straining the drying lines in the vicinity. In addition, the reconstruction of the dryer will provide an opportunity to better store the products intended for sale, speed up the pace of grain harvesting, and plan the company’s operations more successfully,”
-says Valdis Možvillo, SIA Tēraudiņi owner and chairman of the board.
About SIA Tēraudiņi:
SIA Tēraudiņi is located in Ungurpils, Aloja parish, Aloja municipality and is a crop farming company with more than 25 years of experience. The company currently employs 31 people. The produce of Tēraudiņi is sold both in Latvia and abroad.
Luminor is the third-largest provider of financial services in the Baltics, with some 870 000 clients and 2 300 employees. In the Baltic region, it has a market share of 14.9% in deposits and 16.9% in lending as at the end of March 2021. Luminor has total shareholders’ equity of 1.7 billion EUR and a CET1 ratio of 23.4%.