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Loan refinanced to the manufacturer ‘VLT’ in the amount of 2.2 million euros

AS “Expobank” has signed an agreement on the largest refinancing project so far for a production company outside Riga – refinanced loan liabilities in the amount of 2.2 million euros to the company “VLT” operating in Valmiera, which produces egg cartons and egg transport pallets.

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“We want to develop, invest in new products and differentiate our assortment,” says Jānis Mūrnieks, Production Manager of SIA “VLT”.

“There is a very simple reason for the desire to differentiate the assortment – there is currently an acute shortage of raw materials. Recycling Latvia, the Baltics, and even Europe are currently unable to meet market demand and us with the required amount of recyclable paper. Over the last year, market changes related to daily constraints have been very noticeable. More packaging goes to retail, and therefore to households, rather than to warehouses. This aspect highlights the problem that we are still a long way from the efficient sorting of household waste, because residents simply throw paper in municipal waste or incinerate it, instead of sorting it and recycling it, “adds Mūrnieks.

SIA “VLT” was founded in 1992, starting its activity as a retailer of agricultural machinery. In 1998, the company from Finland equipment manufacturer Huhtamaki Oy purchased equipment for the production of egg cartons and egg transport pallets, thus starting the production of egg packs. In the following years, other equipment was purchased, becoming the largest producer of egg cartons and egg transport pallets. Baltic countries.

Currently, SIA “VLT” produces more than 40 million production units per year, of which about 80% are egg cartons, and 20% – egg transport pallets. About 85% of the production is exported to Poland, Lithuania, Estonia, Germany. The main raw material for production – cardboard packaging, newspapers and various paper. The company works in four shifts, employing up to 50 people in total.

According to the company, the Covid-19 pandemic has rapidly contributed to the trend towards more home cooking, which has led to an increase in egg consumption worldwide, which in turn has boosted demand for egg packaging. In addition, consumers are paying more and more attention to food packaging, which is encouraging egg producers to phase out plastic egg packaging and opt for more environmentally friendly and recyclable packaging.

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