Luminor Bank has granted EUR 2.49 million in business development financing to SIA Iecavnieks & Co., one of the largest producers of unrefined oil in the Baltics. The company has been granted a long-term loan and a credit line, which will enable it to purchase the necessary crops for processing, ensuring continuity of operations.
With the financing provided by Luminor Bank, SIA Iecavnieks & Co will raise additional working capital to purchase the necessary raw materials for the production of the new RAPU products, expand sales channels, increase oil production capacity, as well as provide working capital for seasonal agricultural work.
“The oil market is one of the most promising and fastest growing ones in the world, with rapeseed oil, which accounts for around 40% of total production, and rapeseed consumption now growing across Europe. We are pleased to support SIA Iecavnieks & Co in its growth and further development, and we hope that the improvements made will help to boost the company’s competitiveness in both domestic and export markets,”
-says Ilze Zoltnere, Head of Luminor Corporate Banking in Latvia.
SIA Iecavnieks & Co currently manages around 500 hectares of agricultural land, 200 hectares of which are owned by the company itself. The company grows crops such as oilseed rape, wheat, and field beans, and pre-processes and stores grain. In the production of the RAPU feed product, the raw materials used are rapeseed and field beans, which are extruded to produce a compound feed that is a more economical high-quality alternative to the products of foreign producers (soybean cake). The company is also better known as a producer of unrefined oil and animal feed, and currently has a capacity of 20,000 tonnes of oilseed per year. Unlike other companies in the industry, SIA Iecavnieks & Co uses cold-pressing technology in the production process, which makes it possible to obtain natural products without adding food additives and without creating waste in the production process.
“Quality is the most important criterion of our activity, and we emphasise it not only in our products, but also in our process management and development plans. With the support of Luminor, we will be able to modernise our technical facilities to expand our farm areas and have a successful summer season. The new grain dryer and technical premises will help to maintain the consistently high quality of our products,”
– points out Dainis Lagzdiņš, Chairman of the Board of SIA Iecavnieks & Co.
About SIA Iecavnieks & Co:
Iecavnieks & Co is a diversified company and one of the largest producers of unrefined rapeseed oil in the Baltics. The company’s main sectors are agriculture, grain pre-processing and storage, and oilseed processing. The company manages 500 ha of farmland, growing oilseed rape, wheat, and field beans. Iecavnieks & Co sells its products on the domestic market and exports them to other countries in the Baltics and other parts of Europe.