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Swedbank grants EUR 3.5 mln loan to Dobeles Dzirnavnieks

BC, Riga, 15.02.2018.Print version
Latvia’s Swedbank has granted a EUR 3.5 million loan to Dobeles Dzirnavnieks grain mill, the bank’s spokeswoman Kristine Jakubovska reported LETA.

She said that Dobeles Dzirnavnieks in 2018 plans to build 15 new grain storage towers and a grain drying kiln in order to improve storage and processing of grain.


Jakubovska said that the present grain storage capacity is 160,000 tons, while the new project will enlarge that capacity by 54,000 tons with 12 new grain storage towers, and by 10,000 tons with three new elevators for fresh grain.


Investments in the elevator project amount to EUR 4.1 million, and EUR 3.6 million will be loaned by Swedbank. In addition, Dobeles Dzirnavnieks has submitted a project for the EU funds, and will also invest its own resources in the project. Total investments in the projects related with intake of grain, pre-processing and storage in 2018 are estimated at EUR 8 million.

"Thanks to upgrade of the existing plants, establishment of new plants and efficient work in the markets, in the past years we have dynamically increased our grain processing capacity. This year we plan to process more than 250,000 tons of grain," said Dobeles Dzirnavnieks board chairman Kristaps Amsils.


In 2017 Dobeles Dzirnavnieks cooperated with 660 grain suppliers, 95% of them were local farmers.


As reported, on 2016, Dobeles Dzirnavnieks reported EUR 89.711 million in turnover, down 8.9% from 2015, but its profit increased 2.4 times to EUR 2.713 million.


Dobeles Dzirnavnieks, founded in 1991, has a share capital of EUR 3.78 million. Since 2008 the company's largest shareholder is Estonian company Tartu Mill.


The main business operations of Dobeles Dzirnavnieks include storage and processing of grain and grain products, production of all types of flour and flour mixtures, production of semolina, pearl barley, food grade bran, processing of buckwheat, packing of food products, wholesale, retail sales and supply of fodder in the whole territory of Latvia.


Swedbank is Latvia’s largest bank by assets.

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