Massive investment windfall for Ventspils

  • 2009-06-10
  • By TBT staff
RIGA - A new 46 million lats (65 million euros) manufacturing plant in Ventspils is expected to create up to 1,000 new jobs and provide a boost to Latvia's struggling local economy.
The Norwegian-owned company Bau-How AS plans to produce highly specialized construction materials for export to the Scandinavian market.

The project is the largest that has been attracted by the Investment and Development Agency of Latvia (LIAA) since 2004.
The company plans to construct four new production factories in Ventspils between 2010 and 2013, with a total manufacturing capacity of about 600,000 square meters of modules per year 's worth some 420 million lats per year.

The move comes as good news for Latvia's ailing construction market, which has been hard hit by the economic recession.
"From an investment project like this Latvia will benefit as a country, and the merits are certainly not limited to the city of Ventspils," said LIAA director Andris Ozols.
"Considering the business nature, Bau-How will require many suppliers such as producers of metal frames, concrete, windows and doors, fittings, providers of transportation and logistics services. The new investment also transfers into new business opportunities for existing Latvian companies," he said.

An estimated 800 to 1,000 workers will be employed at the manufacturing plants, which will be located within the territory of the Ventspils Free Port Authority.
Bau-How AS CEO Ulf Aberg said Ventspils was selected as the site for the facilities because of its existing infrastructure and attractive business environment.

"In choosing a location for the Bau-How Baltic production facility, we prioritized direct access to port, combined with advantageous business environment, relevant territory…and access to a qualified workforce. That's why we chose Latvia and the city of Ventspils," said Aberg.
The company plans to commence production in the fall of 2009 at its current leased premises.
In the first phase Bau-How will invest 3.8 million lats, with 150 jobs expected to be created.
Production is planned at 60,000 square meters per year in the initial stage, ultimately increasing to 600,000 at the project's completion.

The company has developed patented and highly flexible modular off-site manufactured construction technology and manufacturing systems.
The industrialized production technique enables the production of cost efficient buildings with a superior technical standard and with much shorter construction periods.
SIA Bau'sHow Baltic was founded in 2007 and is the daughter company of Bau-How AS, a Norwegian registered company with offices in Scandinavia and Germany.