RIB grants €10.8 million to wood processor Krauss for growth
RIB has provided €10.8 million in financing to Latvian wood processing company Krauss, enabling it to refinance existing liabilities and secure additional working capital. The funding was arranged through ALTUM's large loan programme with a capital discount.
SIA Krauss, a Latvian wood processing company specializing in birch processing, has received €10.8 million in financing from RIB. The company covers the full production cycle, from sawing birch logs to manufacturing finished solid birch wood products, and also processes production residues into briquettes.
About the company
Krauss is a 100% Latvian-owned company founded in 2001 that employs more than 170 people. It is Europe's leader in birch log sawing and solid birch wood product manufacturing, exporting its output to 26 countries. The sawmill's capacity exceeds 85,000 cubic meters of birch sawlogs per year.
Purpose of the financing
The funding is intended to refinance the company's existing liabilities under more flexible repayment terms while also providing additional working capital for daily operations. This improves the company's cash flow management. Mareks Gurauskas, Head of RIB's Corporate Business Division, noted that the deal demonstrates the bank's accumulated expertise in the wood processing sector and its readiness to support the client's further growth plans in modern technology and export markets.
Future plans
Igors Maršals, co-owner and board member of Krauss, explains that regular evaluation and optimization of the company's financing structure is an essential part of its development strategy, allowing it to keep increasing production capacity and strengthen competitiveness in export markets. Going forward, the company plans to focus more on expanding finished product manufacturing capacity and diversifying its product range, thereby continuing to raise the added value of birch timber processed in Latvia. The investment financing was secured through ALTUM's large loan programme with a capital discount.
