Swedbank will issue a EUR 24.49 mln loan to Dobeles Dzirnavnieks grain mill, Swedbank spokesman Janis Krops told BC.
He said that Dobeles Dzirnavnieks plans to invest EUR 32 mln in new plants, including EUR 24.491 mln loan from Swedbank. The company’s investments are aimed at development of the largest and most modern infrastructure for processing organic grain and innovative pasta production plant.
Krops said that implementation of both large-scale projects will significantly increase the company’s production capacity and expand the range of products. and further improve its competitiveness in the foreign markets.
“Our goal is to mark Latvia on the world’s map as a place where high-quality food products with high added value are made.,” said Dobeles Dzirnavnieks board chairman Kristaps Amsils.
The company said that only 10-15% of organically grown grain are processed and sold as certified organic products, but thanks to the new project, this share will be increased to 50%.
Swedbank representative Ieva Vigante said tha tthe bank has been cooperating with Dobeles Dzirnavnieks for more than ten years, and so far more than EUR 80 mln have been issued in loans to the company.
As reported, Dobeles Dzirnavnieks turned over EUR 113.722 mln in 2017, up 26.7% from a year before, and its profit increased 53.9% to EUR 4.174 mln.
Dobeles Dzirnavnieks, founded in 1991, has a share capital of EUR 3.818 mln. Since 2008 the company’s largest shareholder is Estonian company Tartu Mill.
The main business operations of Dobeles Dzirnavnieks include storage and processing of grain and grain products, production of all types of flour and flour mixtures, production of semolina, pearl barley, food grade bran, processing of buckwheat, packing of food products, wholesale, retail sales and supply of fodder in the whole territory of Latvia.