EU – Baltic States, Latvia, Markets and Companies, Woodwork

Production has been suspended; the company is selling the stock it has produced previously. The head of the company is ready to wait for even a couple of years for a deal to be concluded and underlines that he does not intend to sell the company for a price lower than its normal market value, writes LETA.

"As the plant is located close to Riga center, its value, including the price of machinery and surrounding land plot, is around EUR 25 million," said the chairman of the board of the company, Karl-Christian Danzer.

Until now, the company has not found a buyer yet. A number of Latvian and foreign entrepreneurs have showed interest about the deal, however, the sums of money offered in all cases were inadequate.

Riga Plywood Plant stopped operating at the end of last year, as its warehouse was full with ready-made production due to plunging sales abroad. Nearly all, 98 % of company's products are exported.

However, a number of experts believed that demand for plywood will gradually resume and company owners will have to make decisions on further action.

According to the company's data, Riga Plywood Plant achieved LVL 4.82 million turnover in 2008, however, it posted around LVL 1.5 million in losses.