Textile material manufacturer Lauma Fabrics Ltd. on 15 August signed a credit agreement with Citadele Bank. It provides that Citadele will loan more than 6 million lats (8.55 million euros) to Lauma Fabrics for the development of the plant. The company has not undertaken additional commitments, but thanks to the support of Citadele, Lauma Fabrics will be able to invest more in production.
“We are pleased about the confidence that the management of Citadele expressed in our company. We have not undertaken additional commitments, but the new loan repayment provisions will enable us to repay it over a longer period and to invest more in production, the major project of which over the next few years will be the Finishing workshop project. The inception of cooperation with Citadele is also an important step in the implementation of this project,” states Edijs Egliņš, General Director of Lauma Fabrics Ltd.
“Our bank is open to cooperation with companies that focus on the development of production and innovation. We are pleased that, thanks to the financing of the bank, the Lauma Fabrics plant will successfully evolve into the future,” says Agnese Paegle, Director of Corporate Banking Sector at Citadele. “I hope that this example will encourage many Latvian entrepreneurs to gear up for the development of manufacturing projects for export-oriented goods.”
She points out that, “In Kurzeme there are a number of major companies in the region's economy, which export most of production. Lauma Fabrics is one such important company in the Latvian economy that is constantly thinking about development, and is a good example to others, since at a time when exports in Europe are slowing, Lauma Fabrics plans to increase export volumes.”
“With the funding of the European Union and Citadele already in the near future, we will be able to purchase new equipment for the reconstruction of our production Finishing workshop, which we have already begun. We plan to finish the modernization project within three years,” says Edijs Egliņš. “As a result of the reconstruction project we will increase plant capacity in Liepaja and for the company – profitability, therefore we will increase export volumes and consider new export options for both Western and Eastern market customers.”
As reported, Lauma Fabrics Ltd. in July 2012 received 30% co-financing from the European Regional Development Fund for the reconstruction project of the Finishing workshop, which is worth 4.9 million lats, and the implementation of which is planned for three years after signing the contract with the Latvian Investment and Development Agency.
In 2011 Lauma Fabrics Ltd. had 22.1 million lats turnover, and ended the year with nearly 2 million lats profit. This year it plans turnover of 23.3 million lats. The company currently employs 536 employees.
About Citadele
Citadele is a local Latvian bank with banking, financial and capital management services. The Citadele Group is represented both on the local/domestic Latvian market as well as in ten other countries. Citadele is the only partner of American Express in Latvia and Lithuania that is entitled to issue American Express credit cards. In the Baltic Institute of Corporate Governance research “Governance of State-owned Enterprises in the Baltics”, Citadele received the highest rating and is recognized as the best-governed state-owned enterprise in the Baltics. The vision of Citadele is to become the most valuable local financial group in the Baltic countries. The owner of 75% minus one share of Citadele is the SJC Latvian Privatisation Agency, whilst 25% and one share belongs to the European Reconstruction and Development Bank.