Luminor has granted 650 thousand euros to SIA Žogu fabrika

28.10.2022

Luminor Bank has supported the further development of the largest Baltic fence manufacturing company SIA Žogu fabrika with 650 thousand euros to ensure an efficient production process and to purchase a new production line. Most of the loan is to increase the credit line, but 150000 euros is a leasing loan for new equipment.

The company manufactures wicker fences, panel fences, agricultural fences, as well as barbed wire, high security barbed wire, gates, and posts for panel fences.

"Five years ago, with the support of Luminor, we purchased new equipment to improve our production process, to move away from outsourcing, reduce production costs, and increase volumes. Now, the company is facing a new phase of development – we have ordered robotic equipment to increase production speed and reduce costs by a further 15%. The new production line will significantly increase our capacity, i.e., it will be able to produce 10 fence gates per hour, compared to the current production of 10 gates per day. The Luminor loan will help us prepare for the new season, as we have already signed supply agreements with the largest retail chains in the Baltics," says Dmitrijs Gorņevs, Chairman of the Board of SIA Žogu fabrika.

Fencing production is year-round, usually less in winter, but picking up again in spring as the product is quickly sold. Therefore, the new equipment and the increase in the credit line are expected to allow producing much larger stocks in winter.

"We have supported SIA Žogu fabrika for several years. Its achievements show that the company's development is purposefully managed and planned. The company has worked hard to optimise its costs, which is why its profitability has increased significantly in recent years. As the production is closely linked to the development of the construction sector, which is still active, we are very hopeful that the bank's financing will serve as a new steppingstone for the company's further growth, as well as facilitate the development of exports outside the Baltic States," says Ilze Zoltnere, Head of Corporate Banking at Luminor in Latvia.

For several years, the company has had no competitors in the Baltic market that could offer such a wide range of steel fencing. In 2021, the company's turnover reached 7 million euros.

SIA Žogu fabrika has moved to new rented premises in Piņķi, where the company's administration, production and logistics centre are currently located.

About SIA Žogu fabrika
Founded in 2009, the company has grown to become the leading fence manufacturer in the Baltics over more than a decade. The company employs more than 35 highly qualified employees with more than 10 years of experience in the industry. SIA Žogu fabrika is the first fully automated fence production plant in Latvia. The quality of the company's products is confirmed by export figures to countries such as France, Sweden, Finland, Iceland, Estonia, Lithuania, etc. 90% of the company's customers are legal entities.

About Luminor
Luminor is the leading independent bank in the Baltics and the third-largest provider of financial services in our region. We serve the financial needs of individuals, families, and companies. Like the Estonian, Latvian, and Lithuanian markets, we are young, dynamic, and forward-looking.