The volume of orders of the manufacturer of prefabricated wooden trusses and roof structures SIA “Freimans Timber Construction” has increased rapidly, therefore the company has decided to expand production, investing approximately half a million euros in the construction of a new production and warehouse building, for the portal “Delphi Business” said Raitis Freimanis, the manager of the company.
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A successful year
Last year, the company did well and managed to realize the set goals. “Compared to 2021, the number of transactions implemented in all markets – both in Latvia and abroad – has increased, and the increase is similar in both segments. In general, the number of implemented projects has increased by approximately 31%, while the increase in turnover is tentatively within 50%, but more precisely the data will be available after the submission of the annual report,” explains Freimanis.
In 2021, the turnover of the company reached 1.74 million euros, and the profit – 195 thousand euros, according to “Lursoft” data. The majority of the company’s revenue is made up of the production and sale of wooden trusses, and already in 2021, the turnover increased by 42.4%, continuing this trend last year.
The increase is related to the fact that the company has increased its production capacity every year, but at the same time interest in the construction of private houses has grown rapidly, which remains high this year as well, says the manager of the company.
The rise in the prices of energy resources is a challenge for Freimans Timber Construction, like any other company, but the growth goals do not allow it to stop. Therefore, the company is currently looking for ways to optimize and improve production processes, Freimanis emphasizes.
Also, the sanctions applied to Russia and Belarus have not affected the company’s operations, as the company has not had transactions with companies subject to sanctions.
Plans to expand
“As the volume of orders grows rapidly, the company needs to expand in order to ensure favorable conditions for storing both raw materials and finished roof structures until their delivery to customers,” explains Freimanis. Therefore, in preparation for this year’s active production season, a decision was made in the second half of last year to build a new production and warehouse building.
It is planned to invest about half a million euros in the construction, according to the announcement in the Procurement Supervision Office, and the work is planned to be completed on September 30, 2024.
Already in 2018, the company invested a similar amount in production development – it invested almost 390 thousand euros in a new wooden truss production facility, 22.4 thousand euros in a laser projection facility and another 65 thousand euros in a sawing facility.
Considering the successful operation of the company, this year the company also plans to significantly increase the team in order to promote the expansion of export markets in several Central European countries and Northern Europe. At the beginning of this year, sales project managers for working with export markets, as well as several other designers, have already started work. If necessary, the number of employees will also be increased at the production plant, adds Freimanis.