RIGA - Valmieras stikla skiedra (Valmiera Fiberglass, VSS) said it is planning to broaden the Valmiera Glass Group operations by establishing a new subsidiary called Valmiera Glass USA Corporation in the United States, reports Nozare.lv.
Currently, company management is in talks with local institutions in the U.S. about a possible location for the company and is compleing other formalities needed to launch the business.
For now, it is planned that Valmiera Glass USA Corp. could start active production in the first quarter of 2015, investing $6.5 million to start up the company. The company in the U.S. will produce higher added value glass fiber products.
The company says that it plans to expand the position of Valmiera Glass Group across the globe.
“The foundation of a company in the USA is a natural, logical and client-oriented step in business development. Each year our sales volume in North America grows. For example, last year, compared to 2012, sales volumes grew 36 percent, exporting 14 percent of the company’s products to the United States and Canada. By establishing a company in the U.S., our products will be more accessible to the clients in North America, the terms of delivery will be shorter, and in the long term the profitability of the company will grow and the partnerships with clients will be closer. The new plant in the U.S. will give new possibilities for business growth and will strengthen the positions of the company in the market for glass fiber products worldwide,” the company said.
Since 2013, VSS has been the holding company of Valmiera Glass UK Ltd. in Great Britain, positioning both companies together as one Valmiera Glass Group. The management of the group, based on the tendencies of market development and planned business results, projects that net turnover in 2014 could reach 127 million euros, while consolidated net profit could reach 9.3 million euros.