Construction, Latvia, Markets and Companies, Metals Market, Real Estate

The businessman indicated that investment in the project was expected to total EUR three million (LVL 2.1 million). Skonto Plan Ltd. has applied for support from the European Union Structural Funds for the acquisition of equipment for the factory. Equipment costs make up the majority of the required investment, totaling around EUR two million (LVL 1.4 million). The workshop will be fitted out with state-of-the-art equipment provided by suppliers all over Europe. EU co-financing will fund up to 35% of its cost, but no more than EUR 500,000 (LVL 350,000), informs LETA.

According to Ravis, the new factory will be built alongside the company's existing factory in Tukums. The hospital beds, cabinets, trolleys and other medical furniture produced is entirely intended for export, both to European Union member states as well as former Soviet countries. At present, agreements are being concluded regarding supply, indicated the businessman.

The company is planning to produce goods worth EUR five million (LVL 3.5 million) during the first year of the factory's operations. Around 100 new jobs are expected to be created.

Skonto Plan Ltd. operates in four areas of production – aluminum, PVC, glass, and steel. In 2009 the company had a turnover of LVL 5.17 million, and made a profit of LVL 476,295.