Staburadze to invest in Naruta confectionery

RIGA (BNS) Ð The Staburadze pastry and confectionery company intends to invest 150,000 lats ($250,000) into the development of its newly acquired Naruta candy factory.

The investment will be effected in three years, said Staburadze's President Ivars Rudzitis. Rudzitis said the sum was stipulated by the terms of Naruta's privatization, but he did not rule out a larger investment.

Staburadze's budget plan for this year does not provide resources to start investing into Naruta, but the management plans to contribute part of the additional revenues of 180,000 lats it acquired from selling shares. Next year the investment will be included in the factory's budget plan, said Financial Director Aivars Razalinskis.

Rudzitis said Naruta would be modernized by renovating its packaging equipment and boiler house, and introducing energy saving practices.

During a meeting in mid-October, Rudzitis did not deny that shareholders will propose to start using the trade mark of Staburadze for products from Naruta.

According to plans, Naruta will raise the output by about 10 percent a month. "Our objective is that Naruta work at full tilt," Rudzitis said.

Staburadze bought Naruta's controlling interest of 52.5 percent for 162,500 lats at a privatization auction on Saturday.

In the first half of this year, Naruta was 19,070 lats in the red. Its share capital is 300,000 lats.