13.09.2022

KRONUS INVESTS IN THE DEVELOPMENT OF METALWORKING FACILITY

Due to the Russian invasion of Ukraine and sanctions, the global metalworking market has been experiencing significant fluctuations and a shortage of raw materials in recent months. KRONUS, responding to the crisis in the related industry, promptly changes the procurement model of metal products and will establish a new metalworking production plant under its wing.

full-page-image

Before the war in Ukraine, the largest amount of all metal consumed in Latvia was purchased directly from Russia, Ukraine and Belarus. The war and related sanctions caused significant problems for many local companies in the industry. The shortage and increase in the price of raw materials, the significant changes in supply logistics, as well as the rise in the prices of energy resources – these are just some of the challenges the industry is facing.

Andrejs Dikins, KRONUS CEO:

“Although the main material for our products is wood, we also use metal in production. In order to overcome this crisis and become more independent from suppliers, we decided to develop the direction of metalworking on our own.

For the creation of the new production plant, we will purchase modern equipment from French and Italian suppliers and equip the production premises. Also, equipment for cutting metal rolls into tapes has already been ordered.

We expect that in 2023 we will process 47 thousand tons of metal. We will provide our production with metal products and tapes for the production of pallet edge accessories, as well as provide high-quality metal cutting services to other companies in the Baltic countries. By overcoming today’s crisis in the metalworking sector, we will become much stronger and more independent, as well as positively influence the Latvian market indicators.”