KRONUS OPENS A METALWORKING FACTORY IN RIGA
KRONUS opens a new metal processing factory in Riga, investing more than 2.2 million euros. The ambitious project was realized in just half a year, and the company plans to deliver the first orders to customers by the end of 2022.
The main direction of KRONUS is the production of wooden packaging. The pallet collars, which are the primary product of KRONUS, also need metal parts – hinges. Since 2017, the company has established its hinge production plant, and the necessary metal was purchased from traders; in addition, about 60% of the metal required to produce hinges was supplied from Russia.
In spring, after the start of the war in Ukraine and the introduced sanctions against Russian companies, while looking for solutions for the supply of metal, KRONUS decided to develop the direction of metalworking. Within six months, attracting 2.2 million euro financing from banks “Swedbank” and “Citadele,” the company implemented an ambitious project – it founded and rebuilt premises, bought production equipment, equipped the production plant, and established cooperation with suppliers. KRONUS cooperates with suppliers from Europe and Asia to provide raw materials necessary for production.
The capacity of metal-cutting equipment is about 50,000 tons per year. KRONUS production plant needs about 12,000 tons (which will also be provided in 2023), so steel products will also be offered to other companies.
Igors Ževaks, KRONUS Chairman of the Board: «When we, KRONUS, make a decision, the whole team acts quickly and purposefully. In half a year our team did a lot of work and today we are taking another important step not only in the development of KRONUS but also in the business history of the Baltic States and the synergy between our woodworking company and metalworking industry companies. The capacity of the new production plant is 50,000 tons per year, of which around 75% is intended for our customers. Thus, being a 100% Latvian company, KRONUS avoids all possible risks of sanctions, which is undoubtedly one of this year’s challenges for both KRONUS’ business and other industry players».