Luminor grants half a million euros to the development of the metalworking company SIA HQ Chipper Parts

The total cost of the project is 886 thousand euros. The company has also received Altum support from the EU Recovery Fund programme for the digitisation of businesses, which will cover up to 35% of the project costs.

“The bank has been working with this innovative metalworking company since 2018 when we funded the purchase of immovable property for the plant. The company’s performance has been very stable and promising, so we granted support several times because continuous development also requires significant investment. It is not easy to do business in this sector because of high energy consumption, therefore the introduction of innovative solutions and boosting productivity are very important factors for increasing competition. HQ Chipper Parts has been quite successful in doing this so far,” says Ilze Zoltnere, Head of Luminor Corporate Department in Latvia. 
 
The main products produced by the company include various parts for chip crushers, pellet manufacturers, waste, plastic, rubber processors, quarry machinery, concrete and pavement manufacturers, and grain processing companies. The main outlets are Latvia, Lithuania, Estonia, Germany, and Austria. The company’s long experience made it possible to implement several innovative solutions to improve the functioning of existing components and assemblies.

“Funding from Luminor, which was received several times, has enabled to increase our capacity and expand the range of products. With the bank’s support, we have replenished our working capital and purchased new equipment, rapidly increasing our market share, sales channels and the range of specialised parts being offered. We have channelled most of the company’s profits towards its further development. We are currently able to produce large amounts in very limited time, and we deliver spare parts throughout Europe within three to six working days,” says Andris Melbardis, Chairman of the Board of HQ Chipper Parts.

The company turnover is significantly growing year-on-year as HQ Chipper Parts expanded its cooperation with existing partners by 30–40%, increased its customer base by 60%, and optimised the duration of production of parts. Investments in equipment have contributed greatly, increasing volumes, speed, and accuracy. The company continues to see growth opportunities due to high demand for its products.