The logging company SIA “PK mežs”, by attracting a loan from the bank “Citadele”, will invest two million euros in the purchase of new forests and in the renewal of equipment, the bank informs.
It is expected that 1.5 million euros will be invested by the company in the near future, expanding the portfolio of forest properties in the territories of Bauska, Aizkraukle and Nereta, while the remaining 500,000 euros will be allocated to the purchase of two units of tractor equipment for for the thinning of the woods.
“When we buy forest properties, we pay attention to those that are in the areas adjacent to our lands. This helps us to be as productive as possible later in the management process. Although we own land with young trees, we tend to buy forests that can be cut relatively quickly, rather than after several years, “says Edgars Keichs, co-owner of” PK mežs “.
He also points out that the new logging equipment will help to process and maintain relatively small forests, which is more difficult to do with the large units of machinery that are usually used in extensive landfills.
“At the moment the price of wood is close to the maximum, which encourages individuals to actively sell their forests, so the market is saturated with supply. Around Christmas the price of wood may drop and therefore activity in the market. “Keich predicts.
“PK mež” currently owns forest properties on an area of 4,000 hectares.
The company “PK mežs” was registered in 2000 and its share capital is 320,124 euros, according to the information “Firmas.lv”. The owners of the company are Keičs, Raimonds Ruķeris and Juris Punka in equal parts. In 2021, the turnover of “PK Meža” was 3.42 million euros and the profit was 155.317 euros.
In terms of assets, the “Citadele” bank is the second largest bank in Latvia. Its bonds are included in the list of debt securities of the “Nasdaq Riga” stock exchange. The bank’s shareholders are RA Citadele Holdings LLC, a subsidiary of the US investment firm Ripplewood, and a group of international investors (75% plus one share), as well as the European Bank for Reconstruction and Development (25% minus one action).
