The leading venture capital company in the Baltic States BaltCap has agreed with the garden furniture production company EKJU on investment in amount of 1.5 million euros. It is expected that the investment will be made in modernization of the company’s production unit and working capital.
“Already now 95% of company’s production is being exported. With the management of the company we have agreed that EKJU needs to strengthen its positions and in medium term it must become one of the leading European companies in its segment. The goal is ambitious enough but with our business knowledge and financing we are sure that we can achieve it,” says Investment Director of BaltCap Peteris Treimanis.
Now EKJU is exporting its production to Great Britain, Denmark, France, Sweden, Norway, Ireland, Spain and the Netherlands.
Peteris Treimanis believes that in Latvia there are all preconditions for the company to be among leaders in Europe. “Latvian timber is a raw material of good quality and available for production; we have also highly-skilled employees who can produce an offer meeting the needs of the export market,” says Peteris Treimanis.
“By attracting a venture capital company to our development, we acquire not only financing but also serious experience in the management of a production company, as well as valuable international contacts,” explains the Head of EKJU Juris Skolins commenting on the company’s development plans.
The BaltCap investment project is being implemented with investment of private investors and financing of European Union structural funds administered by the Latvian Guarantee Agency. Director of the LGA Ivars Golsts emphasises that investment in an exporting company with ambitious development plans is an excellent example of effective use of state aid. Up to now, BaltCap has attracted financing for 7 investment projects within the framework of the state supported programme.
SIA EKJU is the biggest garden furniture producer in the Baltic States employing more than 180 people. The administrative office of the company is in Riga but production units are in Cesis district, Drebesi parish. In 2011 the company’s turnover was 6.8 million euros which is 13% more than a year before that.
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