OREANDA-NEWS. August 24, 2011. The DnB NORD Bank has granted a loan of EUR 4.5 million to the machinery company Malmar Sheet Metal with a five year term so that it can build a factory to manufacture motor vehicle spare parts and supplies in Ventspils.  The money will also be used to buy a painting line and some metals processing equipment, reported the press-centre of DnB NORD Bank.

SIA Malmar Sheet Metal manufactures spare parts for motor vehicles, specialising in the manufacturing of frames for trucks and buses.  It is a subsidiary of the Cormetallis NV company in Belgium.  The factory is currently in rented facilities at Fabrikas Street 6 in Ventspils, and the new factory will be in the territory of the Ventspils Freeport near the Ventspils airport.  The address is Ganibu Street 107.  The company plans to complete the construction and installation of the factory and its equipment by May 31, 2012.

"We are delighted that there are companies in Latvia which are as capable of exports as Malmar Sheet Metal," says the head of the DnB NORD Bank Corporate Services Board, Viktors Sersnovs.  "The company's clients include globally known companies such as Volvo Truck, Volvo Bus, Renault Truck, Siemens, Atlas Copco, New Holland, Caterpillar and many others.  All of the output of the new factory, which will be built with the help of the bank's loan, will be exported.  The DnB NORD Bank always supports capable and powerful companies which plan for their long term development while, at the same time, substantially enhancing Latvia's export capabilities."

The head of Malmar Sheet Metal, Maris Petrovskis:  "We are glad that we found a bank that was prepared to help us in developing our company's operations.  The rented facilities that we have used to expand output are too small, and because of a lack of facilities and equipment, we have had to do our work at different locations and even in different countries.  Once the new factory is in place, we will be able to reduce the time of the manufacturing process substantially.  We will also be able to reduce costs.  The new building will allow us to absolutely all of the work ourselves and under one roof, so to say.  The money from the DnB NORD Bank will allow us not just to build the new factory, but also to purchase a painting line and some metals processing equipment, as well as to prepare the surrounding infrastructure."

Co-financing from the European Union is available for the project.  Once the work is done, 45% of the investment will be repaid.