Investments worth 3.5 million euros to increase production capacity aimed at conquering the markets of the USA, UAE and Saudi Arabia
Having received co-financing from “Citadele” bank, the Latvian manufacturer of pressed woodchip pallet blocks “Baltic Block” has invested 3.5 million euros in new production technologies and production facilities. The company has also revealed its plans for expanding exports to the USA, United Arab Emirates, Costa Rica, Saudi Arabia and South Korea.
In addition to the five existing extrusion lines, three new “IMAL s.r.l.” lines produced in Italy have been purchased, a modern glue kitchen has been set up, a new manufacturing hangar has been built, a steam boiler and a new packaging line have been installed, and steam heaters have been enhanced.
Having implemented new manufacturing possibilities, “Baltic Block” has started producing 90x90 mm pallet blocks, which is a new item in the company’s product range.
“We envisage that production capacity will increase by approx. 20 to 40 %, depending on the manufacturing configuration or the type of products being manufactured. This will not only provide our company with possibilities of servicing the current demand more efficiently and implementing new products, but will also pave the way for entering new markets. This is certainly a positive for the overall status of Latvian export,” Andis Šķēle, Director of “Baltic Block”, states.
While forecasting the indicators of 2018, which is the year when the new technologies were implemented, representatives of the company set a goal of producing 109,000 m3 of pallet blocks, compared to 82,000 m3 in 2017. Whereas the monthly production capacity of the company is being estimated to amount to 11,500 m3 to 12,000 m3 of manufactured products.