BlueOrange supports the construction and development of a new production plant of a company “iCotton” in Liepaja
February 20, 2019
Liepaja-based hygiene products manufacturer “iCotton” will invest EUR 5.79 million in the construction of a new production plant and the purchase of production facilities, with the financial support provided by “BlueOrange” bank and the Central Finance and Contracting Agency (CFLA). The construction works are scheduled to start within one month and are expected to be completed in spring 2020.
“The crediting program for small and medium-sized businesses is one of our current priorities, so we are particularly glad to provide the necessary financial support to a company that successfully operates not only in Latvia but also in Europe. It is pleasing to see that companies in Latvia are also following environmentally-focused modernisation strategies,” says Dmitrijs Latisevs, Chief Executive of BlueOrange.
The new production plant will be located in Liepaja, 4A Pulvera street — nearby the existing “iCotton” production and storage complex that occupies the area of 15,000 m2, on 74 Krumu street. The area of the new building will be 4916,8 m2, and it will increase the total production area of “iCotton” to almost 25,000 square metres. With the construction of a new production plant and modernisation of the production process the company plans to increase its annual average turnover to EUR 30 million in the coming years, which is for 30% more than in 2018. “Raising production capacity, using energy-efficient solutions and upgrading the production plant by using the latest cotton-fibre processing technologies will allow “iCotton” to strengthen its market positions both in the Baltic States and in Europe. Currently around 40% of our production is being exported to European countries,” says Sergejs Binkovskis, Chairman of the Board at “iCotton”.
“iCotton” currently employs 146 employees, and almost 95% of its production is exported abroad. The main market outlets for “iCotton” are the Baltic States, Russia and Ukraine. The company's production is also exported to Scandinavian countries, Poland, Uzbekistan, China, Vietnam, France, Italy, the Czech Republic, Slovakia, Romania and Hungary.
“Innovation and high quality of our products have allowed the company to increase its turnover by nearly 225% over the last three years, therefore also in the coming years we fill focus on modernisation and expansion of our product range through the use of natural and ecologically clean raw materials. We are planning to start the production of a number of new products, including women's hygiene products, by using patented cotton processing technologies,” says Sergejs Binkovskis.
“iCotton”, founded in 2013, is the only company in the Baltic States that provides a full production cycle of cotton products and wet wipes. Currently, “iCotton” is one of the largest producers of cotton products, wet wipes and personal hygiene products in the European Union and CIS countries, with one of the most modern production plants in Europe.