RIGA - The fiberglass maker Valmieras Stikla Skiedra (Valmiera Fiberglass) has announced that it plans to build a new production facility over the next two 's three years with estimated investments to reach 35 million euros.
Imants Saulitis, company finance director, said the new plant would be built from scratch and equipped with new and advanced production equipment.
By erecting the new facility the company aims to end reliance on outdated, inefficient production methods and equipment.
Still, even after the new facility is brought online, the present production facility of the company will continue operations, company officials said. Previously Saulitis said that in order to meet demand Valmiera Fiberglass has been purchasing fiberglass threads abroad that are essentially unprofitable but could still be processed using own capabilities.
The company's shareholders include Germany's P-D Glasseiden Oschatz, with 45.3 percent of shares, Vitrulan Textilglas with 30.8 percent and Skandinavska Eskilden Banken with 8 percent.
The company said in a statement to the Riga Stock Exchange that good results for 2004 and smooth development over the past years encouraged the company's board of directors to support the investment project.
Saulitis said the project would be implemented through bank loans.
This year VSS plans to post a profit of 2.5 million lats (3.5 million euros), up 27 percent from 2004, on sales of 32.8 million lats, up 23 percent.
VSS's audited profit last year was 1.9 million lats, an increase of 2.2 times year-on-year. Sales last year amounted to 26.7 million lats.