Construction materials manufacturer SIA “Lode” plans to increase its market share in Latvia, but for the time being the company’s largest sales market is Lithuania, said “Lode” board member Valdis Zariņš.
He pointed out that in Latvia the company sells about 15% of its production, while the rest is exported.
“Sometimes we wonder why we are not so highly valued at home. It is a rhetorical question that we work with architects, builders, all those involved in creating new buildings. We talk about what are the priority factors for a healthy microclimate in Europe’s vision. and energy saving inside the building, the use of ceramics is a successful solution, “said Zariņš.
He added that the company’s main export market is Lithuania, including about 85% of the ceramic blocks of the Āne plant in Jelgava region are sold in Lithuania, 10% in Poland and only 5% in Latvia.
Zariņš said that the weight of the product is decisive in the export of ceramic blocks, therefore “Lode” products will not be marketed from Latvia in very distant markets. In Europe, it is customary to sell ceramic building materials in markets up to 1000 kilometers away, as transport costs are then too high.
“However, there are exceptions. For example, we are very successful in marketing products to Vladivostok. The answer is very simple – we are the closest point in Europe to high-quality ceramics. We are closer than Germany, Austria or the Netherlands. It is also easier for them to agree with us. That ‘s why we are already sending our products to the second large Vladivostok facility by ships through the Indian Ocean, “said Zariņš.
Asked what are the reasons for the small sales in Latvia, Zariņš said that in recent decades there has been a tradition that builders in Latvia use ceramics less and more other materials. On the other hand, the traditions in Lithuania, Poland and Austria are completely opposite – when it comes to residential houses where people will live on a daily basis, the first choice is ceramics and only then other materials are considered.
Zariņš explained that the demand in Lithuania is also higher because there are more common private houses, including in cities. The second aspect is related to tradition – in Lithuania already in Soviet times there were four ceramic factories and houses have historically been built of bricks.
“There was a single” Lode “operating in Latvia, which transported all its products to Moscow.” Lode “also started offering ceramic blocks only in 2001. All the nineties went to the star of expanded clay and aerated concrete. Therefore, the habits of building buildings have come. On the other hand, Lithuanians have always been much more accepted that houses should be built of ceramic bricks, “said Zariņš.
He added that currently there are no more ceramic factories in Lithuania that produce modern finishing materials or blocks. Only very simple bricks are produced and few companies are involved.
“We have taken over this historical market share with Āne blocks, and Polish manufacturers have entered Lithuania. We both win because we have both higher quality and more affordable price due to the shorter distance. Lithuania also has the biggest battles with competitors, because there are also ceramics The market is much larger than in Latvia, “said Zariņš.
In Latvia, on the other hand, the share of ceramics in the building materials market is so small that there is not really anything to compete with, Zariņš explained. “Lodei” has 95% in the Latvian ceramic block market, 80-85% in the finishing brick market, but the small market size does not give the company the effect it can achieve in large markets.
“Therefore, this year we will try to help people understand why ceramics are better for them than other materials. The main arguments are two – energy saving and indoor microclimate, because ceramics have five times higher compressive strength than any other alternative material, plus high mass allows to accumulate more heat than “It is possible to save energy throughout the year, which is clearly demonstrated by research in the Botanical Garden of the University of Latvia, where for five years it has been studied which of the wall materials performs this function most successfully,” said Zariņš.
He added that it does not make much sense for the company to look for new markets at the moment, because “Lode” has fully utilized its capacity and everything it produces is also sold. “It’s just a matter of making more profit by producing more demanding, more complex and therefore more expensive products, deviating from cheap, simple products. This is the direction of our development,” said Zariņš.
Asked whether the company has tried to sell its products in Sweden, Finland, which is a relatively close market, Zariņš said that he has tried, but in the Nordic countries there is a strong tradition of using wood in construction. “The first place is for the tree, and thus they are lobbying their economy as well,” Zariņš added.
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