Luminor bank has granted funding of 644 thousand euro to the Baltic biggest fence production company SIA Žogu fabrika for purchase of a new production unit.
SIA Žogu fabrika is the Baltic market leader in production of fences and the first fully automated fence production plant in Latvia. In nine years, the company has invested more than one million euro in new and modern equipment in order to increase production efficiency and ensure high-quality products. Thanks to the latest technologies, Žogu fabrika can produce an average of 45,000 metres of the highest quality wire netting and 3D panel fences.
In order to continue the development of the company and increase the production capacity, SIA Žogu fabrika plans to purchase a new production unit from Italy – a netting welding unit with automatic 2D and 3D panel line. The new unit will allow to produce 3D panel fences much faster, providing even higher quality solutions. The unit total purchase amount is 800 thousand euro, of which 644 thousand euro is provided by Luminor bank as a long-term loan, and the remaining amount is the company's own investment.
"In general, production in the metalworking sector has decreased significantly this year, but at the same time there are companies in this sector, the demand for products of which has even increased. We are glad that Žogu fabrika also is among the companies which have been able to successfully overcome difficulties and actively continue activities. The company is our long-term and loyal customer, therefore, we are glad that we can continue cooperation also in new stages of the company's development,” says Ilze Zoltnere, Head of Luminor Corporate Department in Latvia.
Chairman of the Board of SIA Žogu fabrika Dmitrijs Gornevs says: "We started cooperating with Luminor bank already several years ago, and it played a big role in the company's rapid development. It was the competence and concernment of the bank's team about the company’s development that opened up opportunities to implement ideas and projects that initially seemed unattainable. Together, we both have been glad about the success of the project and have overcome the difficulties, and now, after many years of cooperation, I can surely recommend Luminor as a reliable cooperation partner.”