Luminor Bank has provided funding of 1.4 million euros to SIA KRK Vidzeme, the largest producer of charcoal in the Baltics, to increase its working capital for building up inventories.
SIA KRK Vidzeme produces high-quality charcoal used for grilling food. The company has received the EU's REACH certificate for the control of banned chemicals, attesting to the high quality of its products. The design of the charcoal production equipment ensures an environmentally friendly production process, minimising the release of harmful emissions into the atmosphere. In addition to the financing provided by Luminor, the company has also obtained a credit guarantee from ALTUM.
"The company is a leader in the charcoal niche in the Baltic States with extensive experience and a broad customer base not only in Latvia, but also in export markets, where demand for high-quality charcoal remains strong. There are no alternatives to alder wood charcoal produced by SIA KRK Vidzeme on the European market, and with supplies from Russia and Belarus being cut off, the company now has good opportunities for further development. We appreciate that the company has already made significant capital investments to improve processes, optimise production and costs, which also improves profitability and accelerates business growth," says Ilze Zoltnere, Head of Corporate Banking at Luminor in Latvia.
The company, whose production complex is located in the Alūksne region, has invested in the production facility and made process changes over the last three years, such as the creation of a workshop for the production of furnace parts, improvements in furnace construction and insulation, and so on, contributing significantly to increased profitability. At the same time, the premium charcoal brand Marienburg, established in 2014, has gained wide recognition in Latvia and abroad.
"Although historically we were focused on the restaurant business, as a result of the COVID-19 pandemic and the suspension of charcoal exports from Russia and Belarus, we were able to successfully diversify our market and customer base, thereby capturing a large share of the European Union market. We are currently working with exclusive dealers, sales chains, and wholesalers throughout Europe. The financing provided by Luminor will help the company to increase working capital, which is an essential prerequisite to build stocks in time to ensure year-round production processes and to cover demand in the autumn and winter seasons, when it's not possible to replenish stocks of raw materials for our manufactured goods," says Andris Griķis, Member of the Board of SIA KRK Vidzeme.
About SIA KRK Vidzeme
SIA KRK Vidzeme is the largest charcoal production company in the Baltics with more than ten years of experience. The company produces around 7,000 tonnes of high-quality charcoal annually. Alder wood purchased from local suppliers is used in the production process. The equipment used by the company is manufactured according to a scientifically developed design and ensures an ecologically clean production process and final product. The company employs 48 people.
Luminor is the leading independent bank in the Baltics and the third-largest provider of financial services in our region. We serve the financial needs of individuals, families, and companies. Like our home markets of Estonia, Latvia, and Lithuania we are young, dynamic, and forward looking.