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New Factory Opening
     press release
 
Latvian company Dîlers opened a new production site into which it invested 3 million LVL
 
07.05.2009 Latvian company Dîlers presented its new production site which will house the most modern aluminium alloy production plant in the Baltic States* and will also serve as a place for recycling of various types of hazardous wastes. In addition to this, the company intends to open a joint-venture (with foreign partners) at the site** for manufacturing of ready-made aluminium parts.
The owners expect return of the invested 3 million Lats (4,27 million EUR) within ten years. Besides own investment, the company used a loan of 1 million LVL granted by Swedbank to finance this project. The opening of the production site will allow Dîlers to offer approximately 50 new vacancies by the end of this year.
By launching the new plant, the company expects to raise the aluminium bar output to 20 thousand tons a year over the next five years, and to 16 thousand tons a year already by the end of 2009 (the current output is 5 thousand tons a year). 100% of the produce the company is exporting to EU states (mainly to Germany). The new plant strictly complies with all EU requirements for occupational safety and environment protection. The plant was constructed over approximately 10 months and completed on time.
“It has been a long time since the business volumes of the company became too massive for the old production site. The place was just too small for us, it did not allow us to increase the aluminium bar output volumes and expand in other business areas related to recycling of waste. When designing the infrastructure of the new site, we planned a reserve in order to be able to increase the capacity of the melting plant, for instance, if necessary or to start processing of other types of packaging or waste. In fact, the new production site is a fundament which opens Dîlers an actual opportunity for increasing the output of the main produce (aluminium alloys) and for expanding its activities by acquiring new market segments mainly related to recycling of hazardous waste.
Of all numerous features of our new plant, I would like to point out the following: an excellent location from logistics point of view, the well considered movement of vehicles within the site, improved conditions for storage of the finished products (aluminium requires comfortable storage conditions) and by far better working conditions for the employees (wider relaxation premises, showers, cafeteria). We have made every effort to use our own experience accumulated over many years as well as to take the best we have seen in analogous plants in other EU member states”, said Board member of Dîlers, Deniss Zaicevs.
After the opening of the new production site, vehicle tyres joined the list of the waste materials currently recycled by Dîlers (household and office electrical appliances, batteries, galvanic cells). The company has already purchased the required systems and equipment.
In 2008, the turnover of Dîlers was 14,2 million EUR (4% growth from year 2007), and the net profit 0.44 million EUR (1,7 times growth). Estimates for year 2009: turnover – 21 million EUR and gross profit – 0.85 million EUR.
* – aluminium manufactured by Dilers is used for the production of: a) parts for cars, such as Audi, VW, Volvo, BMW, Skoda, Iveco; b) parts for various types of brand technology and equipment, such as Husqvarna, Bosch, Siemens; c) various building structures and mechanisms, e.g. steps for escalators;
** – the total area of the land under Dîlers’s new production site is 25 thousand square meters.