The JSC "LODE" has provided information to newspaper Dienas Bizness as listed
below:
"Lode invests in production of ceramic blocks.
The biggest producer of ceramic building materials in Baltic states JSC Lode
this summer will launch a new plant at Āne near Jelgava. There will be produced
Keraterm blocks and building bricks.
This is the fourth production unit of JSC Lode. The others are located at Liepa
Cēsis district, at Līvāni Preiļi district and at Kalnciems Rīga district. By
Lode's opinion a rapid growth is expected in building materials production in
Baltic states. That is the reason why Lode is looking for new investments by
selling a part of its shares. Company achieved significant rise in sales both in
volume and value in 2006. Total sales amounted to Ls 8.6 million what is 40 %
increase comparing to the previous year. At the same time sales volume increase
amounted to 32 %. Slightly higher increase in value is due to the increase of
production costs what was compensated by the increase of selling price.
10 million euros invested in the new plant.
Jānis Kļaviņš Production Development and Technology Director of JSC Lode
informed that the new plant will start operations in August. Investments in
construction and technology are more than 10 million euros. Expected capacity -
160,000 m3 Keraterm blocks and building bricks per year.
Market.
Compared to other product groups produced by Lode, Keraterm is going to have the
biggest growth in the future, stated Valdis Zariņš Marketing and Sales Director
of JSC Lode. This is because of the “big boom” in construction sector in Baltics
and Poland. The biggest unsatisfied demand currently is for different
construction materials like aerated concrete, ceramside concrete, silicate,
concrete blocks and ceramic blocks. Such demand is mainly due to a big amount of
mortgages what people have received from banks during the last 2 years. Even if
banks will change their policy and value of mortgages will decrease in the
future, construction sector will not feel it at least for 3 years.
In 2006 different construction blocks were used more than produced locally in
Latvia. Situation is going to be changed in 2007 after Lode and Maxit will
launch two new big plants in June and August this year. Market will not
“swallow” such a big injection in a short time therefore customers can expect
stable prices until December.
Finishing materials.
Besides investments for the production of Keraterm blocks Lode has invested 1.5
million euros to increase finishing bricks production at Liepa. In terms of
sales value increase in 2006 was 25 %.
Lode is the only ceramic pavers producer in Baltic states. In spite of the fact
that ceramic paving bricks are only 2 % of all pavers in Baltics this segment is
growing.
Roof tiles sales increased by 25% in 2006.
Sales value increase in Baltic countries in 2006
Latvia - 56%
Estonia - 52%
Lithuania - 91%
JSC Lode sales (million Ls)
2007 forecasted - 12.2
2006 - 9.2
2005 - 6.6
2004 - 5.3
Sales split by countries in 2006 (%)
Latvia - 62%
Lithuania - 13%
Poland - 13%
Russia - 7%
Estonia - 5%
Source: JSC Lode"