The project also involves financing from the European Union structure funds and in addition to the 7 million euro financing, SEB and Vika Wood signed a guarantee contract worth 1.05 million Latvian lats regarding the EU structure funds advance payment from the Investment and Development Agency of Latvia.
“Vika Wood has succeeded in ensuring steady production figures even during the economic downturn thanks to well-established timber production infrastructure in Latvia, the ability to adapt to the changing business environment and the skilled use of export opportunities,” says Ainārs Ozols, head of SEB in Latvia.
Since Vika Wood commenced operation in 1997, the company has increased production output nine times thanks to internal corporate culture and well-timed attraction of financing. Since 1999, SEB has granted to Vika Wood more than 15 million euros in investment loans for production development.
“When the economy was on the rise, the company was looking towards long-term goals, therefore now we can increase our competitive edge during the economic downturn. We are very satisfied with our professional cooperation with SEB working towards our goals,” says Andris Krecers, chairman of the Board of Vika Wood.
In 2009, Vika Wood produced 274,000 cubic metres of sawn coniferous timber, 93.4 per cent of which was exported to 25 countries, mainly to Japan – 26.9 per cent. In 2009 the company has paid more than 2 million lats in taxes. Vika Wood employs 179 people.