On 30 March 2017, VALMIERAS STIKLA ŠĶIEDRA signed a loan agreement with AS SEB Banka and AS Danske Bank Latvian Branch on financing in the amount of EUR 50.4 million for the expansion of the US plant, for which it is planned to construct a glass fibre production and glass fibre processing plant in the US. The expansion will make it possible to increase the total production capacity of Valmiera Glass Group and its competitiveness in international markets, to achieve even better production stability and to react better to the growing market demand for glass fibre products.
VALMIERAS STIKLA ŠĶIEDRA has already informed that P-D Valmiera Glass USA Corp., its US subsidiary, was incorporated in 2014. Currently work is in progress to expand the US subsidiary, building a modern glass fibre production and processing plant. It is planned to finish the construction of the plant by November 2017, when it will commence production.
“Having built the fifth glass melting furnace of the Group, with the planned production capacity of 50,000 tonnes of dry thread per year, the Group’s total production capacity will grow. This is a good cornerstone for further successful development of the Group,” said Andre Schwiontek, Board Chairman of VALMIERAS STIKLA ŠĶIEDRA, AS.
Head of Danske Bank Latvia Raivis Kakānis: “This is a long-term jointly evaluated project, which will significantly strengthen VALMIERAS STIKLA ŠĶIEDRA global competitiveness. We are pleased for the opportunity to be part of it as company’s financial partner.”
Ints Krasts, vice-president of SEB Latvia: “VALMIERAS STIKLA ŠĶIEDRA is one of the leading companies in its area with global ambitions. This deal is a big step towards turning these ambitions into reality, and it also confirms that we as company's financial partners are ready and able to support the expansion of a Latvian company into the global market. We have complete faith in the well-considered business strategy of VALMIERAS STIKLA ŠĶIEDRA and we are certain that this project will contribute to strengthening company's leading position in its market.”
It is planned that VALMIERAS STIKLA ŠĶIEDRA will repay the loan till March 2024, starting from 1 October 2018. The loan agreement is secured by all the companies of the Group.