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To support the relocation of the metalworking company SIA KnK Mefab’s production facility from the capital city to Ādaži, Luminor bank has provided EUR 1 million in financing to the company’s subsidiary PP Property. The company will use the financing for business development and acquisition of land and industrial buildings, while the client will use its own funds to repair and adapt the premises to its needs.
“Depending on the resources available and the strategy implemented, municipalities have different policies for attracting businesses to their territory, so it is not uncommon for businesses to relocate from one municipality to another. By assessing what each municipality has to offer, the available infrastructure and workforce, businesses can save money in the long term, directing it to further development. The bank is pleased to support entrepreneurs who are looking for ways to make their business more profitable and develop it in the long term,” says Ilze Zoltnere, Head of Luminor Corporate Banking in Latvia.
SIA KnK Mefab is a full-cycle metalworking company specialising in the production of high value-added sheet metal products. The company’s service segment includes laser cutting, coordinate punching, perforating, bending, welding, powder coating, abrasive blasting and others.
The company will acquire eight buildings of a former meat processing plant and land with a total area of 3.89 ha in Ādaži. SIA KnK Mefab plans to initially use about half of the area and lease the rest. Until now, the company leased premises in Riga.
“After receiving a very supportive attitude and tax incentives from the municipality of Ādaži, we decided to relocate our business to Pierīga Region. We plan to carry out extensive renovation and repair works to adapt the premises to our needs, followed by the attraction of lessees. For business development planning, one of the most important characteristics is the availability of vacant premises and land. Absence thereof has a fundamental impact on the ability of companies to develop further, which is why we have taken a major step to further develop our company that will allow us to plan the long-term development of the company, and not only how to occupy and improve the premises, but the entire area. The purchase of the property opens up many possibilities – installation of solar panels, installation of heat recovery equipment, electricity monitoring, heat loss and others that are difficult to implement in leased premises,” says Kristaps Laipnieks, CEO of SIA KnK Mefab.
The founders started their business as a start-up, receiving funding from the state-owned development finance institution Altum.