On June 3rd the management of Norwegian company BAU-HOW AS has officially announced its establishment in Latvia. Further in Ventspils BAU-HOW will produce modules for construction of buildings using innovative technology developed and patented by the company. Everything produced in Latvia will be exported.
This is the largest investment project attracted by the Investment and Development Agency of Latvia (LIAA) since 2004. Total amount invested by BAU-HOW AS will be 65,5 million euros.
The investor has researched Latvia as a potential location for new manufacturing plant for several years. In 2007 LIAA was addressed, and in close cooperation with LIAA the most suitable solution was found. During the period of two years several potential locations were assessed, until the territory of Ventspils Free Port Authority was selected as the most suitable location.
Ulf Åberg, BAU-HOW AS AS Chief Executive Officer said BC: “In choosing a location for „BAU-HOW Baltic” production facility, we prioritized direct access to port, combined with advantageous business environment, relevant territory that ensures the building of at least four production facilities and access to qualified workforce. That’s why we chose Latvia and the city of Ventspils.”
The strategic goals of the company in the period from 2010 to 2013 are targeted at construction of 4 factories in Ventspils with total manufacturing capacity of approximately 600 000 square meters of modules per year. Total manufacturing capacity would ensure establishing of high value added product sector in Latvia in the amount of at least 420 million lats per year. Furthermore significant part of the financing would be devoted to research and development not only at BAU-HOW, but also at other companies, which would supply raw materials to BAU-HOW. BAU-HOW plans to employ 800-1000 workers at their manufacturing plants in Latvia.
Director of LIAA Mr. Andris Ozols notes: „From the investment project like this Latvia will benefit as a country and the merits are certainly not limited to the city of Ventspils. Considering the business nature, BAU-HOW will require many suppliers such as producers of metal frames, concrete, windows and doors, fittings, providers of transportation and logistics services. The new investment also transfers into new business opportunities for existing Latvian companies.”
Ventspils City Major Mr. Aivars Lembergs says: „I am very pleased that during these challenging and difficult times not only for the local construction market but also for the entire Latvian economy, the new and innovative construction industry player will start its operation in Ventspils. In particular, it will result in creation of 200 new work places for the citizens of Ventspils during the first phase of the investment plan. We are thankful to the Investment and Development Agency of Latvia for their work so that the Investment Project can be realized.”
SIA Bau–How Baltic is one of the daughter companies of BAU-HOW AS (Norway). Other companies and representative offices within the group ensure marketing and sales activities, as well as patent applications and further product technology development.