Luminor grants EUR 1.3 million to Karlsberg SIA for business development

Luminor Bank has provided financing of EUR 1.3 million to Karlsberg SIA, a manufacturer of paper, cardboard, and various plastic products, for the purchase of new production equipment, replenishment of working capital, acquisition of real estate, and increase of factoring limits. Karlsberg SIA is a Norwegian family-owned company with over 60 years of experience that has relocated its production facility to Latvia, thus contributing to our country’s economy.

Karlsberg SIA plans to invest the funding in increasing production volumes, as the company has entered into extensive cooperation agreements with cosmetics and carton packaging manufacturers for the production of various specific beverage boxes, the production of which requires new equipment. 

“The new cooperation agreement opens up new development opportunities for the company. Due to the high production volumes, manual or semi-manual production would be too slow and costly, so we plan to automate our operations to speed up the production process. In total, we plan to purchase 14 different machines, such as box making, lid and box gluing, pressing, etc machines., with which we will be able to automate the production of various boxes,” says Daiva Stone-Kazakeviča, Director of Karlsberg SIA.

The printing sector has been on an upward trend in recent years. Thanks to lower labour costs, Latvian companies are now more competitive in the European and Scandinavian markets. Although Karlsberg SIA is not the largest player in the sector, its chosen niche, focus on export markets, and investments in production facilities ensure a stable market position, offering both competitive prices and consistent product quality. 

“Karlsberg is a long-term customer of the bank. We value the company’s historical experience, professionalism, and specific domain knowledge. In recent years, the company’s turnover has increased significantly, investments have been made in equipment, and the company has entered new markets. We are delighted to support and contribute to the company’s further growth through streamlining and automating operations,” says Ilze Zoltnere, Head of Luminor Corporate Banking in Latvia.

Karlsberg SIA is one of the subsidiaries of Karlsberg AS. Other subsidiaries: Sign+Display SIA is engaged in the production of LED light stands, Graphic+Design SIA develops graphic design for Karlsberg customers, and Frauenburg Industrie SIA, founded at the end of 2020, is engaged in the production of various signs, including door signs and road signs, which are currently in high demand in Norway. All subsidiaries have a total of 61 employees and at least half of their production is sold in Norway and the United States. The company buys all paper and cardboard raw materials from Latvian companies: Antalis AS, Poligrāfijas apgāds SIA, Talsu Tipogrāfija SIA, Papyrus SIA, and others.