Pride of the Latvian Economy
Transcription
Pride of the Latvian Economy
EXPORT AND INNOVATION AWARD 2012 Pride of the Latvian Economy Dear Reader! A company that has created an innovative product, achieved noteworthy export results, or offers a product or service that is a serious rival to imported products or services, sets a good example of how the spirit of enterprise is fostered in Latvia. Such examples are compiled in the publication Pride of the Latvian Economy. We are pleased to present to you the winners of the Export and Innovations Award 2012 competition – companies that have not only achieved notable results in their business sectors but, by participating in the competition, confirmed the spirit of competition so characteristic of the business environment. The Investment and Development Agency of Latvia has been organizing the competition Export and Innovation Award for eight years in a row. The competition is important in presenting an opportunity to evaluate and honor the best Latvian enterprises engaged in healthy rivalry. The participants vie for awards in several categories, presenting their achievements, new products that are successfully marketed abroad or high-quality products made for the local market. The companies’ applications for the Export and Innovation Award competition prove its importance for Latvian enterprises and its popularity with the general public. The publication Pride of the Latvian Economy was prepared as part of the European Union’s Structural Funds project Programme for Motivating Innovative Entrepreneurship. A key objective of the program is to encourage society to set up new businesses. We hope that the publication will become a source of inspiration and a guide to new, active enterprises, fostering their successful development. Andris Ozols Director Investment and Development Agency of Latvia 1 Seeking the Pride of Latvia’s Economy To boost the competitiveness of Latvia’s entrepreneurs on both domestic and foreign markets, bring about production and retail of commodities with high added value, and single out the most successful players in the sector, the Ministry of Economics and the Investment and Development Agency of Latvia (LIAA) for the eighth year have organized the competition – Export and Innovation Award. Its main objective is to showcase the talent of Latvia’s entrepreneurs in materializing unusual and innovative ideas, creating a wide variety of products with the highest added value, and thereby ably competing with world-famous companies. 114 bids from enterprises from all parts of Latvia were received for the 2012 competition, representing the key export branches – wood processing, furniture manufacture, metalworking, automotive industry, electronics, appliances, light industry, polygraphy, construction supplies, food production, textiles, chemicals and pharmaceuticals, information technology, design elements, etc. This publication serves as recognition for those companies who have a success story to tell, that the products they make are not only succesful replacements for their imported counterparts on local markets, but are also in demand on export markets, resulting in Latvia’s name becoming better known internationally. 2 Export and Innovation Award The competition was originally meant to rate and then honour Latvia’s most successful exporters, but over the years such categories were also added as Innovative Product, Import Substitute Product, and Industrial Design. A competent jury evaluates companies that excel at offering innovative products on the market, that are able to replace imported analogues with their products, and that outdo existing product designs by new and innovative ones. The total amount of export of the award-winning companies of the past three years is over EUR 796.81 million, and the most exportable and innovative companies employ more than 7500 people on aggregate. This year, companies applied in four competition categories: Best Exporter (in two groups: large and medium-sized companies, and small companies), Import Substitute Product, Innovative Product and Industrial Design. As usual, participants in the fifth category, Leading Exporter, are selected by jury based on export data and investment in sustainable development. A total of 28 companies were nominated as finalists of the Export and Innovation Award 2012 competition. 3 Evaluation and Awards Evaluation of the Export and Innovation Award’s contenders is conducted in two rounds. In the first, the distinguished jury reviews the questionnaires filled out by companies on the products they have entered for the competition, and operational figures. In the second, the nominee-companies are visited by jury members for a first-hand look and the opportunity to discuss with management the respective sector’s problems and the company’s future prospects on local and foreign markets. The jury is made up of economists, members of the Latvian Confederation of Employers, the Latvian Institute, the Latvian Technological Centre, university professors, regional agency chiefs and other experts. Each competition category’s winners (first and second place) receive all-expenses-paid business trips – accompanying top state officials on foreign visits, in LIAA-organized trade missions and/or individual commercial sojourns. Third-place winners receive free advertising space in any of LIAA’s informative publications. All winners in addition have the right to use the Export and Innovation Award 2012 logo for their promotional materials and on product packaging. Information about all contenders is placed on LIAA’s homepage at www.liaa.gov.lv with a link to the respective company’s Website. 4 Title Leading Exporter Mikrotīkls Ltd. Mikrotīkls Ltd. Routers and wireless systems Mikrotīkls Ltd. (MikroTik) is a Latvian company founded in 1995 to develop routers and wireless ISP systems. MikroTik now provides hardware and software for Internet connectivity in many countries around the world. The company has created the RouterOS software system that provides extensive stability, controls, and flexibility for all kinds of data interfaces and routing. „The main feature of MikroTik is that the company creates and develops products, which are then manufactured by other MikroTik approved companies. We like to concentrate on areas, we believe, we are the best at, and let others do what they are best at. At the moment, this cooperation has been very successful.’’ Arnis Riekstiņš, MikroTik President: „Three factors have determined the success of our company – orientating ourselves towards the global market, the constant development of new products, as well as educated employees, who are interested in what they do. We have always based our business on how we create our products, and that persons make the decision to buy our products not based on being encouraged to do so, but making the decision themselves. We have not participated in any state tenders or received any kind of European funding.” Website: www.mikrotik.com Turnover (2012): EUR 79.98 million Number of employees (2012): 82 Main export partners: EU, USA, China, Indonesia 6 The company’s products are manufactured in production plants in Latvia, Lithuania and China, while the equipment and accessories themselves are sold through various distributors around the world. MikroTik is one of Latvia’s largest exporters. The company began its activities connecting research establishments with wireless connections, which back then was a revolutionary innovation. Furthermore, the company’s first project abroad was in Moldova – connecting the country’s parliament and government buildings with Internet. „We understood that the Latvian market was too small, thus we must manufacture something that can be used everywhere. Orientating ourselves towards the international market is our success story. ‘’ The company admits that the situation in the IT sector keeps changing rapidly. Often, when a new product is developed, others look at it and find ways to manufacture it faster and at a lower cost, thus the original developers are forced to abandon production. In such cases, decisive is the role of the creative team, which is capable of innovative thinking and being able to immediately react to the latest technological innovations on the market. Three years ago, MikroTik opened a subsidiary in Hong Kong, so that it could more conveniently oversee production and sales in the Far East. In other areas of the world, the company’s products are distributed by cooperation partners. The company attracts new clients through its web-site, as well as participating in IT exhibitions around the world. Furthermore, the company itself organizes its own exhibitions and conferences. Category Best Exporter in the Group of Large and Medium-sized Companies 1st place – GroGlass Ltd. 2nd place – Lauma Fabrics Ltd. 3rd place – Arčers Ltd. Recognition: Brabantia Latvia Ltd. Jelgavas Tipogrāfija Ltd. Papīrfabrika Līgatne Ltd. Tenachem Ltd. GroGlass Ltd. Glass with anti-reflective coating – Artglass, Sapphire, Diamond The high technology plant GroGlass is one of only five such companies in the world that is capable of manufacturing glass with anti-reflective nano-coatings. The unique GroGlass production equipment was created by the local company Sidrabe, but in 2008 the company began manufacturing anti-reflective or ‘’invisible’’ glass. „Priceless artwork framed in glass at the London National Art Gallery and the Louvre in Paris, Bang & Olufsen television displays – these are just some of the many examples where this high-quality Latvian made anti-reflective glass is being used.’’ The anti-reflective glass manufactured by the company is being used in a wide variety of sectors – glass framing art, television screens and electronic displays, glass supermarket refrigerators, as well as modern architectural and interior design solutions. In the manufacturing process, the glass has several metal oxide coatings applied on both sides, with the thickness of the coating being about 1/500th of a human hair, thus virtually eliminating glare by reducing reflection to 1%. Furthermore, GroGlass glass is capable of UV protection of up to 100%. Aleksandrs Kelbergs, GroGlass Ltd. Director: „Our anti-reflective coating makes the glass practically invisible and eliminates reflections, which allows modern architects all over the world to include our glass products in shop and restaurant windows, VIP areas in stadiums and many other places where visibility must be perfect. We are extremely satisfied with our cooperation with the Investment and Development Agency of Latvia and that we were able to attract European funding for research to create new products and conquer new export markets.’’ Website: www.groglass.com Turnover (2012): EUR 9.96 million Number of employees (2012): 96 Export countries: Germany, UK, France, Belgium, USA and many others 8 „The foundation of the company’s success is the fact that it has a well thought-out product portfolio differentiation, as well as persistent work on product research and development. One job in manufacturing, ensures several jobs in the service industry, thus we are pleased that in such a way we are supporting the Latvian economy.’’ At the moment, GroGlass has taken approximately 70% of the market in several European countries, and has also won several prestigious awards, including the Export and Innovation Award in 2012. Creating a new, innovative and successful company in a specific sector is not easy, however, the GroGlass success story can serve as a source of inspiration for Latvian entrepreneurs hoping to find new ideas for new brands that can proudly say - ‘’Made in Latvia’’. Lauma Fabrics Ltd. Raw materials for manufacturing lingerie Lauma Fabrics main business lines include production and sale of materials for the manufacture of lingerie and medical products. The materials offered by the company come in a range of harmonious colours, including a wide array of lace and patterned fabrics in a variety of functional, classical and more complex motifs; the company also produces lighter, more delicate lace and knitted fabric. Lauma Fabrics is the only company in the Baltic countries that can provide clients with all they need for making lingerie. This means that the production process includes thread preparation, knitwork and spinning, treatment, quality control, cutouts, tailoring and sewing. The production process at Lauma Fabrics combines a number of technologies to create complex products that the company can offer to clients in one set. „In this kind of business, you need to keep track of fashion trends and client requests. The demand for our products is determined by various client-related factors: the client’s main business, market segment, business going well or going bad.” Edijs Egliņš, Lauma Fabrics Ltd. Director: „When you work in the textiles and fashion business, you have to keep in mind that large amounts of money must go into product development. The company has never tried to save on the development of new products, which is why the materials produced by the company are used by over 200 lingerie brands in more than twenty countries. We cannot compete with China in terms of prices, but we are open to co-operation with any lingerie producers to whom original design, quality and service matter.” Website: www.laumafabrics.com Turnover (2012): EUR 34.43 million Number of employees (2012): 550 Export countries: Belarus, Lithuania, Estonia, Ukraine, Poland, Russia, France Lauma Fabrics products are sold in twenty countries in total. The company works with clients by meeting them individually and at fairs, constantly maintaining contacts to achieve co-operation that lasts for many years. Furthermore, the company has agents in several countries, as well as wholesalers that act as go-betweens for Lauma Fabrics and its clients. Taking into account that many local companies in Latvia have been historically developing along with Lauma Fabrics, this kind of co-operation has always been excellent and successful, and the company is very pleased with this. The company has also developed good co-operation with LIAA, which currently supports the reconstruction of the company’s finishing facility. „The main objective this year is to successfully complete the reconstruction of the finishing facility without halting the production process. As a result of this reconstruction, the quality of our products will be higher, the company’s energy efficiency and customer service will improve, which in turn will significantly consolidate the company’s competitiveness in the future.” 9 Arčers Ltd. Planning, manufacturing, and assembly of glazed building structures, construction work The construction company Arčers was established in 1992. Its operations are focused on the construction and reconstruction of buildings, as well as the design, planning and construction of glazed and aluminum constructions. Arčers has also worked on projects abroad, carrying out mainly specialized construction projects. Approximately 35% of the company’s glazed construction products are exported – aluminum, plastic and glass interior and exterior constructions. The company’s main export region is Scandinavia, especially Norway, Sweden, as well as Western Europe, especially Belgium. The company also has experience in such countries as Denmark, United Kingdom and the United Arab Emirates. „Both the Scandinavian and Western European markets are long-standing, and business persons in these regions are very experienced, who all highly value quality, cooperation history, speed in solving problems, as well as attitude towards clients. Overall, the most optimal export markets for Latvian builders are Scandinavia and Western Europe. Price is important in these regions, but not necessarily the determining factor.” Edijs Purmalis, Arčers Ltd. Deputy Chairman of the Board: „Our cooperation experience with the Investment and Development Agency of Latvia has been very successful, as we ourselves wished to utilize all of the opportunities the agency offers companies to expand their businesses abroad. It is wrong to believe and expect that it will provide companies with foreign contracts. Each company has to achieve this themselves.” Website: www.arcers.lv Turnover (2012): EUR 46.95 million Number of employees (2012): 200 Export countries: Norway, Sweden, Belgium 10 Another important factor is the distance of export markets, which can substantially influence the final price. However, Arčers remains competitive in this area as well – calculating travel costs, subsistence allowances and living costs, Arčers can offer a price similar to what local companies can offer. „It must be pointed out that when entering new markets, in many cases, there is a long process of harmonizing documents to obtain the necessary permits, as well as various inspections are carried out. Furthermore, companies also frequently come in contact with hidden market protection mechanisms. Strict legislation in foreign countries, as well as the active work of local labor unions, ensures that salaries are in accordance with the salary level in that respective country. Latvian entrepreneurs can save on cheaper energy resources used during the production process, as well as on engineering solutions, which are often equal and even superior to what local companies can offer in foreign countries.” Brabantia Latvia Ltd. Ironing boards and laundry dryers Brabantia Latvia is a subsidiary of the Dutch concern Brabantia International B.V., which has over 90 years of experience in the manufacturing of household products. Brabantia Latvia began its operations in Latvia in Talsu Region’s Ģibuļi County in 2008. Evaluating the most suitable location for its production plant, the parent company compared several countries in Eastern Europe. Latvia was finally chosen because of its highly developed metalworking traditions, membership in the European Union, having the euro currency pegged to the national currency, as well as the overall favorable environment for business activity. Brabantia Latvia manufactures durable, functional and long-lasting household products, which are made out of high quality materials. The company is capable of manufacturing one ironing board per minute, and several hundred per day. Each week, the company ships seven or eight truckloads of products to warehouses in Central Europe and England. Since the company began its operations in Latvia, it has produced over one million ironing boards and 860,000 drying racks. „The company’s first steps in Latvia were taken with major support from the Investment and Development Agency of Latvia. Good cooperation has also been established with the local government.” Georgijs Buklovskis, Brabantia Latvia Ltd. Plant Director: „In the five years since we established our production plant in Latvia, we have become one of the most effective manufacturing companies in the country. The efficiency of Brabantia Latvia, per one employee, is two times higher than the EU average and four times higher than the Latvian average. This gives us the opportunity to successfully offer our products on the international market.” Website: www.brabantia.com Turnover (2012): EUR 11.49 million Number of employees (2012): 76 Export countries: UK, Belgium 99 percent of products manufactured by Brabantia Latvia are exported. Furthermore, export volumes in 2012, compared to the previous year, increased over twofold. Overall, the concern has 23 offices and 60 distributors all over the world, as well as over 10,000 cooperation partners. Brabantia household goods are sold all over the world in a total of 97 countries. „Since we began production in Latvia, we have been able to double production volumes and turnover each year. In addition to increasing financial figures and production volumes, there has also been a proportional increase in products with “Made in Latvia” on them, which is something we are very pleased with.” Business processes within the company are organized in accordance with the latest and most effective business methodologies. The company utilizes a large number of automated production lines, robots and other modern equipment. The company is also constantly carrying out improvements and planning expansions for the future. 11 Jelgavas tipogrāfija Ltd. Books, diaries, calendars, advertising materials and presentational materials for businesses Jelgavas tipogrāfija specializes in production of books, diaries, calendars, advertising materials and presentational materials for businesses. The company’s competitiveness is based on high-quality production. Until 2005, Jelgavas tipogrāfija exclusively produced advertising materials. Later came investment in book production technologies, purchase of required equipment and construction of a new printinghouse outside the city. „A book is not only a product for generating profit. It is a part of national culture. Each day, we create books from various materials, combining ideas and visions with paper, materializing the thoughts of authors and artists. Through our work, we contribute to a better world.” The local market, where activity is currently the highest, is emotionally important for Jelgavas tipogrāfija. Around 50% of the company’s production is sold to Latvian book enthusiasts, the second half is exported. „The export market helps maintain economic stability, but local books provide more joy.” Juris Sīlis, Jelgavas tipogrāfija Ltd. Chairman of the Board: „The printing-house has one the most advanced modern technologies, however, this is no reason to stop. Our previous years can be described as development years. We work with enthusiasm and pleasure, which results in growth and boosts product quality and operational efficiency. We will continue our path of development, investing in technologies, seeking and introducing innovative solutions in book publishing, and training personnel.” Website: www.jt.lv Turnover (2012): EUR 6.95 million Number of employees (2012): 110 Export countries: Germany, Finland, Russia, France, Norway, Sweden, Switzerland, Estonia, Lithuania, Denmark, the Netherlands, Belgium 12 The company chooses its export markets intuitively, of course, taking into account various factors – social, economic and political. Support from the Investment and Development Agency of Latvia and a chance to use the European Union’s structural funds are important as well. „Logistics, tax and customs legislation are particularly important on export markets, just like market share rivals’ technological capacity, chosen products, buying and payment habits.” Recognition among the competitors indicates that we are capable of producing competitive production and are European-level specialists in our sector. The company’s success is an award for all employees. Papīrfabrika Līgatne Ltd. Paper and paper products Papīrfabrika Līgatne (Līgatne Paper Mill) is one of the oldest and tradition-richest paper producers not only in the Baltic countries, but also in Europe. Today, it is the only paper production mill and major paper recycler in Latvia. The company specializes in production of art paper for schools and young artists, core board and paper cores, special purpose technical and packaging papers. The paper mill exports 70-80 % of its output. The company produces all of its products from recycled paper, which helps protect the environment. The Paper Mill has created a new product line called „Paper from Paper’’, which includes 20 different paper products, for example, office paper, art paper, as well as colored paper notes. The company’s products are all „FSC’’ internationally certified. Līgatne exports its products to Lithuania, UK, Slovenia, Estonia, Denmark, Sweden, Slovakia, the Netherlands, Finland, Australia, Norway, Ukraine, Germany, Belgium, Chile, USA and Poland. Over the past several years, paper consumption and production volumes in USA and Western Europe continue to decrease, but there has been an increase in demand for specific design paper, as well as the importance of recycled paper. The Paper Mill has been able to successfully combine both of these niches, and is capable of competing with high-quality products for a good price. Normunds Dzērve, Papīrfabrika Līgatne Ltd. Member of the Board: „The success is in large part due our team, which works together to optimize the production process, as well as implement new innovations and technologies. These are persons who are not only capable of finding new export markets, but are also capable of retaining long-time clients.’’ Website: www.pf-ligatne.lv, www.makulatura.lv Turnover (2012): EUR 4.48 million Number of employees (2012): 140 Export countries: Lithuania, UK, Slovenia, Estonia, Denmark, Sweden, Slovakia, the Netherlands, Finland, Australia, Norway, Ukraine, Germany, Belgium, Chile, USA, Poland „We are a small paper mill, thus we are capable of fulfilling specialized orders and the individual requests from our clients, which larger paper companies are not capable of. This is proven by the geography of our extensive export markets all over the world, as well as our loyal and trustworthy clients, who have been working with us for many years.’’ In recent years, a trend has been noticed where Latvian residents choose local products more frequently, as well as products that are ecologically and biologically friendly. This is a very important aspect. We are beginning to see more and more clients recycling their waste and giving their recyclable goods to local manufacturers – in this case recyclable paper to our paper mill. „Participation in the Investment and Development Agency of Latvia’s Export and Innovation Award 2012 was a bench-mark of sorts for our company, as we were able to evaluate the work we have carried out and come to the conclusion that we are a competitive company on the global market.’’ 13 Tenachem Ltd. Tenaglass insulating glass sealants Tenachem Ltd. is a Tenax Group company, the largest manufacturer of industrial chemicals and special sealants in the Baltic States, as well as one of the five leading insulating glass sealant producers in the world. The company was established in Dobele in 1991. Tenachem produces and delivers 12,000 tonnes of products per year to clients all around the world. All of this is provided and developed by a team of 80 people in Latvia in collaboration with Latvian and European certification and testing centres. With its products Oksiplasts, Elūrs and Tenaplasts, which are used for sealing deformation joints in residential buildings, Tenachem has been the industry’s leader for several years. Insulating glass sealants Tenaglass-2, Tenaglass-PU and Tenaglass-3 are demanded not only in Europe, but also in the Middle East and the Far East, from South Korea to Mexico and Canada. Nikolajs Kurma, Tenachem Ltd. Director: „To ensure stable growth in such a specific area, we are constantly following the latest development trends on the global market, acquiring and introducing new technologies. The Export and Innovation Award 2012 is of particular importance, because it is valuable recognition on the company’s path towards further accomplishments.” Website: www.tenaglass.com Turnover (2012): EUR 19.77 million Number of employees (2012): 79 Export countries: Canada, Mexico, Brazil, South Korea, Egypt, Algeria, Tunisia, Spain, Portugal, Italy, Slovenia, Bosnia and Herzegovina, Croatia, Serbia, Bulgaria, Romania, Hungary and many others 14 „Around 95% of our products are exported to 40 countries worldwide. Our export countries are becoming more diverse, clients - more demanding and knowledgeable. Striving for constant improvement in quality and client satisfaction indicators is particularly important in the company’s operational policy.” By closely following the latest market trends, introducing new technologies and developing new operational directions, Tenachem turnover and range of products grow each year. The company is currently working on introducing a new group of products on the market – Tenalux, to be used in building construction, civil engineering, automotive and other industries. „The basic principle of Tenachem operations is to be a stable and reliable partner to clients, suppliers and employees, ensuring the company’s compliance with the highest quality standards.” Category Best Exporter in the Group of Small-sized Companies 1st place – Zabbix Ltd. 2nd place – Pure Chocolate Ltd. 3rd place – Aloja-Starkelsen Ltd. Recognition: NPK Terminālis Ltd. Zabbix Ltd. Network monitoring solutions Information technology company Zabbix was established in 2005. The company’s main business line is the development of systems for monitoring of networks and applications. The programme is available to users free of charge. The company’s export portfolio is made up of related services: technical support, consultation, training, turnkey solutions and integration in other systems. „We place emphasis on a flexible approach to client needs and the ability to provide top-level services at reasonable prices. The company has more than 55 international partners that are actively offering the company’s product all over the world.” Zabbix monitoring solutions are employed in such sectors as finance and insurance, information and communications technology, health care, public sector, retail trade, power supply and chemical industry. The company’s subsidiary in Japan, Zabbix Japan LLC, opened its office in Tokyo last year, launching active distribution of the company’s products and services to local companies, including banks, insurance companies, telecommunications, manufacturing, transport and logistics enterprises, as well as educational and health care organizations. Aleksejs Vladiševs, Zabbix Ltd. Director and Member of the Board: „We concentrate all our efforts on product development, which is the only way to keep our leading position. While new markets choose our product themselves, we of course analyse in which region our profile needs to be increased, and strive to achieve this. LIAA helped us gain more popularity by supporting our participation in several fairs, while Latvian embassies in France, UK, Belgium and Scandinavian countries offered us support in arranging business meetings.” Website: www.zabbix.com Turnover (2012): EUR 1.42 million Number of employees (2012): 25 Export countries: Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Cyprus and many others 16 This year, Zabbix has expanded the list of its export markets by adding China, India and Australia, and it is also planning to expand into the innovations giant Singapore. „There are not many solutions similar to Zabbix in the world, but it does not mean that we have few rivals. On the contrary, there are many competitive companies, yet this notwithstanding, Zabbix has been able to take the leading position in, for instance, Japan, Brazil and of course Latvia.” The company notes that winning the LIAA award has further increased the company’s popularity and therefore the number of the company’s clients in Latvia. Zabbix Ltd. considers the achievement an award for its hard work, which gave it new vigour and motivation to continue product development and upgrades. PureChocolate Ltd. Chocolate truffles PureChocolate was established in 2007 with the aim of utilizing the experience accumulated by professionals over the years to find the ideal chocolate truffle taste. The result of the company’s careful selection of ingredients, creative approach and teamwork is an exclusive collection of chocolate truffles, which have already found clients in 19 countries around the world. „Our most important export markets – Russia, Estonia and Germany. We are also working on gaining more ground in the US and Scandinavian markets. This year has been important in entering the markets of the Arabian Peninsula – it is a specific market, where excellent chocolate truffles without alcohol are in demand.” PureChocolate last year experienced a major increase in production volume, i.e. 88 tons of chocolate truffles were made, compared to 40 tons in 2011. The company has 220 tons planned for this year. Pēteris Žimants, PureChocolate Ltd. Chairman of the Board: „This summer, we opened up a new chocolate plant in the village of Pūre, investing EUR 4.26 million. It is a brand new building with modern production lines, where we will produce chocolate truffles, as well as a wide range of different chocolate products. We plan on producing up to 220 tons of truffles in the new production plant already this year.” Website: www.purechocolate.eu.com Turnover (2012): EUR 1.47 million Number of employees (2012): 42 Export countries: Lithuania, Estonia, Russia, Belarus, Azerbaijan, Germany, Poland, Romania, Slovakia, Czech Republic, Australia, Norway, Denmark, Finland, Sweden, USA, Saudi Arabia, Kuwait, Japan In order to promote the company’s products and increase export opportunities, PureChocolate regularly participates in the largest industry exhibitions „Sweet&Snacksexpo” (USA), „ISM” (Germany), „GulFood” (Dubai). „Participation in the Investment and Development Agency of Latvia’s competition is an important event for the company in its cooperation with potential and current partners. Success in the competition gives us the opportunity to create additional positive impressions about us, as well as helps us develop relations with our partners.” The company’s future plans include the development of various new products, which would substantially increase PureChocolate’s assortment outside the truffle, chocolate and confectionary categories. The company has already added a new product to the market – truffle filling without sugar, which tastes identical to regular chocolate truffles. 2013 has been defined by the company as a year of investment. Next year is expected to be characterised by a surge, with turnover doubled in all markets. This is to be reached thanks to the new chocolate factory, opened in the end of the summer. 17 Aloja Starkelsen Ltd. Potato starch, dried fruit gelatine, jelly and other products Aloja Starkelsen is the largest manufacturer of potato starch in the Baltic States. In recent years the company has doubled its production volume, exporting a majority of its products. Aloja Starkelsen has been manufacturing organic potato starch from Latvian-grown potatoes since 2008. In just a few years, the company has become one of the largest makers of this type of product in the world. Aloja Starkelsen is located in northern Latvia, not far from the town of Aloja. It is a joint Latvian-Swedish venture established on the basis of an old factory in June 1991 as the first Latvian food company with foreign capital. The company offers self-produced consumer products. Its main products are potato starch, from potatoes grown in both organic and integrated modes, baking powder, vanilla sugar, dried fruit gelatine and jellies. „Aloja Starkelsen is one of the three largest manufacturers of organic potato starch in the world. The company produces more than 2,000 tonnes of potato starch each year. Its potato starch is exported to Germany, the Netherlands, Italy, USA, Sweden, Denmark and Switzerland.” Jānis Garančs, Aloja Starkelsen Ltd. Director General: „Partners’ mutual trust is of huge importance on export markets. For a new company without an experienced partner, it is not easy to achieve. Over the past three years Aloja Starkelsen has become one of the leading manufacturers of organic potato starch in the world, thanks to close cooperation with the experienced company Organic Food Finland and efficient support from the Investment and Development Agency of Latvia.” Website: www.culinar.lv, www.alojas.lv Turnover (2012): EUR 5.53 million Number of employees (2012): 52 Export countries: Lithuania, Estonia, Sweden, Finland, Denmark, Germany, France, the Netherlands, USA, Belarus, the Czech Republic 18 In addition to self-made products, Aloja Starkelsen also represents the products of several of Europe’s largest manufacturers of food raw materials in the Baltic States. Their variety is vast, for example – gelatines, egg powders, pectins and other raw materials important for the industry. Aloja Starkelsen exports 80% of its production. The company has cooperation partners in Lithuania, Estonia, Sweden, Finland, Denmark, France, USA, the Czech Republic and Belarus. The company’s production facilities are certified in accordance with BRC, EU organic, NOP and Kocher standards. „Our capacity allows us to expand partner ranks in Europe, Asia, North America and South America, as well as launching long-term cooperation on other markets worldwide.” NPK Terminālis Ltd. Fertilizers – production, blending, packing and export NPK Terminālis Ltd. specializes in producing complex fertilizers. The company’s advantage is smart organization of logistics chains, using railways for shipping raw materials from the East and sea routes for directly supplying its products to such exotic countries as Chad, Rwanda and Tanzania. The company’s production facility is located in Liepāja, where various complex fertilizer formulas are blended based on individual requests. The company has developed more than 150 different types of fertilizers that are used to grow cotton, coffee, cocoa, tobacco, tea, rapeseed, wheat and other crops in many countries worldwide. „We export around 90% of our products. The company’s fertilizer mixes are used not only by Latvian farms but also on football pitches Daugava in Liepāja and Skonto in Rīga and golf courses in Sweden.” In creating a new product, particular attention is paid to the quality of packaging and design. Modern packaging design trends are taken into account. Our packaging is made from cardboard, which is an environmentally-friendly material. Ģirts Cēlājs, NPK Terminālis Ltd. Member of the Board and Director: „We are delighted that state institutions pay attention to our needs and help develop new export markets. In our work, we have met responsive people who have provided valuable pieces of advice and have shared contacts. I believe that the acquisition of new export markets has been facilitated by successful cooperation with state institutions.” Participation in the Export and Innovation Award 2012 means not only recognition of the company’s accomplishments at the national level, it also plays a huge role in motivating the company’s employees and organizing their tasks. „Our success is based on persistent work and direct contacts with buyers. It does not matter whether they live in Africa or Japan, we always try to visit and talk to them to understand their needs. If any shortcomings arise we offer the best solutions. This approach makes business more tangible.” Website: www.npkterminalis.com Turnover (2011): EUR 9.47 million Number of employees (2012): 30 Export countries: Cameroon, Chad, Senegal, Tanzania, Rwanda, Burundi, Mozambique, Sweden, Estonia, Germany, Japan 19 Category Innovative Product 1st place – Tilde Ltd. for machine translation technology LetsMT! 2nd place – JSC Spodrība for ecological household chemicals line Eco Seal for Nature 3rd place – Madara Cosmetics Ltd. for anti-aging cosmetics line Time Miracle Recognition: Bogema Lingerie Ltd. for nursing bra Tilde Ltd. Machine translation technology LetsMT! Tilde is the leading technology localisation company in the Baltics; the localisation system developed by the company ensures high-quality machine translation for small languages too, for example, the quality of translation from English to Latvian, Lithuanian and Estonian surpasses the quality of the more-popular Google and Bing translators. „The LetsMT! platform hosts more than 130 translation systems and provides translation in over one hundred languages. The technology makes it possible, with the help of statistical algorithms, to “learn” how to translate large texts. Platform users can “teach” their systems and create a machine translator that suits their individual needs.” Tilde programmes have become very popular in the Baltic countries where they are used by more than 350,000 licensed computer users. Tilde applications for mobile platforms are used by dozens of thousands of smartphone users. Whereas the Tilde Online Encyclopaedia and the language portal letonika.lv has more than 500,000 visitors annually. Tilde is also the developer of Latvia’s most popular accounting system, Tildes Jumis. AndrejsVasiļjevs, Tilde Ltd. Head: “The fact that Latvia is a small country and that only a couple million people speak Latvian is advantageous to us. It prompts us to seek new solutions so that quality results could be achieved by investing much less human resources. That is how we have created an innovative technology that is well suited for not just Latvian but also other languages. The LetsMT! platform has attracted vast international interest, and we are proud that it has received the Latvia’s Innovative Product award.” Website: www.tilde.lv, www.tilde.com Turnover (2012): EUR 3.89 million Number of employees (2012): 74 Export countries: EU, USA, Russia Tilde software products and services are exported to the European Union countries, USA, Russia and other countries. „The knowledge and competence that has been acquired in Latvia, Lithuania and Estonia may be used for the development of global solutions, however, our focus will still be on Latvia. Although there are more growth opportunities in foreign markets, Latvia is our home market, which will be the first to be offered our best solutions.” Much of Tilde’s efforts go into research, so the latest achievements may be transformed into solutions used by many people. Five doctors of science are on staff at Tilde, and the results of the researches have been published in multiple scientific articles. The company also actively co-operates and does joint research with the leading European research centres: the University of Edinburgh, the University of Copenhagen, the German Research Centre for Artificial Intelligence and many others. 21 JSC Spodrība Ecological household chemicals line Eco Seal for Nature Spodrība is the oldest manufacturer of cleaning and cosmetic products in Latvia, as well as the first manufacturer in the Baltic States to start producing organic cleaning and cosmetic products. The new products are a step toward green thinking – they do not contain colourants, phosphates, allergens, or unnecessary preservatives, and are safe for both humans and the environment. „We are not facing strong competition on the local market, yet we do not rest on our laurels. Consumers always expect innovations, which is why we are keeping track of what our rivals are doing, trying to be one step ahead of them. At the same time, we keep our time-tested values and quality intact, which has always been the cornerstone of our products.” Spodrība products are exported to Lithuania, Estonia, Russia, Belarus and Ukraine. The numbers of exported product units and the types thereof differ from one country to another. What is more important is that the demand for Spodrība products keeps growing and it continues to receive regular orders from abroad. Baiba Megre-Ansviesule, JSC Spodrība Director: „We see our further development in export, therefore it is particularly important to invest in the development of our product lines and ranges. The greatest challenge at this time is to foster public awareness of the effect that household cleaning and washing products have on human health and the environment, turning the spotlight on the confirmation of such products’ quality on the international level – the Ecoflower certificate, which guarantees that a given product is made of high quality, non-damaging ingredients.” Website: www.seal.lv Turnover (2012): EUR 2.41 million Number of employees (2012): 70 Export countries: Russia, Ukraine, Belarus, Lithuania, Estonia 22 During the next five years, the company plans to become one of top ten producers of quality and environmentally-friendly household cleaning and detergent products in Europe. This will be achieved through the development of the ecological product line Eco Seal for Nature, which will also be targeted at consumers in Western European countries. „We do believe that Spodrība, being the largest and most experienced manufacturer of cleaning products, is capable of changing the market and the way of thinking in Latvia. Therefore winning 2nd place in the competition’s category Innovative Product gives us an excellent opportunity to make ourselves heard and to foster wider recognition of the new, ecological products.” The new ecological products from Spodrība have also received other awards: the Environmental Award for contribution to the introduction of environmentallyfriendly solutions, as well as Innovative Product award for good results in the creation of new products. Also, Eco Seal for Nature has become the Trade Mark of the Year - For the World. Madara Cosmetics Ltd. Anti-aging cosmetics line Time Miracle Natural cosmetics manufacturer Madara Cosmetics uses active substances from plants growing in the north, applying innovative solutions. In the company’s six years of existence, its product range has expanded to include more than 40 products. The main ingredient of the company’s prize-winning Time Miracle product line is Latvian birch juice, which facilitates collagen synthesis in skin, cell growth and protects against the harmful effects of the environment. Over the past few years, Madara Cosmetics has conducted a series of studies in cooperation with Latvia’s best research institutions to develop innovative products using local raw materials. „Madara Cosmetics is a patriotic company that cares about Latvia’s image. With our operations, we try to popularize Latvia. At the same time, our goal is to become one of the most well-known manufacturers of natural cosmetics in Europe.” Uldis Iltners, Madara Cosmetics Ltd. Director: “There are many unique resources in Latvia – nature, traditions, skills, people. Combing them all with the highest quality, we create products that are competitive in the entire world. Madara Cosmetics products include Latvian values, and we are proud of the country we come from.” Website: www.madaracosmetics.com Turnover (2012): EUR 1.90 million Number of employees (2012): 28 Export countries: Finland, Denmark, Switzerland, Germany, Austria, the Netherlands, Estonia, Lithuania, UK, Russia, Ukraine, Italy, France, Japan, Hong Kong, China and South Korea Madara Cosmetics brand is widely recognized in Scandinavia, especially in Finland and Denmark. The company also exports its production to Switzerland, Germany, Austria, the Netherlands, Estonia, Lithuania, UK, Russia, Ukraine, Italy, France, as well as the countries of Asia – Japan, Hong Kong, China and South Korea. Taking part in the competition alongside Latvia’s strongest export companies was a big challenge for Madara Cosmetics and third place in the category Innovative Product is a great honour. The company actively takes advantage of available state support programs to participate in international exhibitions, develop products and grow. This helps highlight the unique qualities in Latvia and attract the attention of the entire world. „Quality, which is the most important value for Madara Cosmetics, is reflected in product development, manufacturing, client service and responsibility towards the environment and consumers. In our operations, we constantly introduce the most modern solutions in the natural cosmetics sector and study unique raw materials and product compositions.” 23 Bogema Lingerie Ltd. Nursing bra Bogema Lingerie Ltd. was established in Liepāja in January 2010. The company found a new niche in the market – creating beautiful lingerie for young women before and after giving birth. The company’s products became highly popular in just a few years, and are currently exported to Russia, United Kingdom, France, Australia, Lithuania, Germany and the Netherlands. The manufacturing process of Bogema Lingerie bras involves innovative silver ion treatment and Ancient Egypt discoveries – silver threads are combined with cotton fibres. The material forms the inner lining of the product, enhancing its therapeutic function and offering anti-bacterial protection. „The competitiveness of a product is determined by its design, quality and price that meets European requirements. Given that our geographic location is closer to Russia and Europe, we have stable export to these markets, where our products are believed to be on par with other top brands.” Svetlana Gaile, Bogema Lingerie Ltd. Executive Director: „The arrival of a baby is a wonderful time for a new mom, but it also marks the beginning of a new period in life. Our products carry a positive message: „You are beautiful and charming, just the way you are now”. Each of our partners has been growing together with us. In essence, we are a manufacturing company, therefore we prefer to cooperate with countries that know how to sell and where our products are in higher demand.” Website: www.bogemalv.com Turnover (2012): EUR 241 000 Number of employees (2012): 23 Export countries: Russia, UK, France, Australia, Lithuania, Germany, the Netherlands 24 The company’s future vision becomes reality quite quickly: every year following visits to fairs, the company’s products also reach locations much further away from Latvia. The company’s main objective is to maintain stability in the future. Thanks to the company’s co-operation with the Kurzeme Business Incubator, established by the state to help new and promising start-ups make their first steps in business, a new logo has been designed for the company. There have been promotional photo sessions, a catalogue of the company’s products has been released, packaging design for the company’s products was developed, and several market studies were carried out and the company’s employees could attend training courses. „Participation in the competition made us all feel like members of a team – we knew we were not alone and that we were on the right track. Innovation is our life, because the market is oversaturated. To find a place in the market, we must constantly keep track of what is new, and be the leader. Our recognition in the competition attests to investments in development and research of innovations. This recognition is of international importance – if you are respected in your country, others will respect you too.” Category Import Substitute Product 1st place – JSC Dobeles Dzirnavnieks for Presto and Dobeles Dzirnavnieks pastas 2nd place – Evopipes Ltd. for plastic pipes for engineering communications infrastructure 3rd place – JSC Smiltenes Piens for whey protein concentrate Piena spēks (“Milk Power”) Recognition: iMedia Ltd. for e-mail marketing service Mailigen JSC Latfood for potato chips, sweet and savory snacks Liko-R Ltd. for eyeglass lenses JSC Dobeles Dzirnavnieks Presto and Dobeles Dzirnavnieks pastas Dobeles Dzirnavnieks was established in 1994. It is one of the leading grain processing companies in the Baltic States, processing more than 100,000 tonnes each year. The company’s main operational directions are production of all types of wheat flour, semolina, flour mixtures, pasta, grain flakes, grits and animal feed. „Constant investment in production, the search for new operational directions, highly qualified and loyal personnel, as well as active operations on export and local markets are the basis of successful operations.” The company dates back to 1976, when the first grain silo and high-capacity drying kiln were built in Dobele. Dobeles Dzirnavnieks was transformed into a joint-stock company in 1991. A high-capacity short form pasta plant was opened in Dobele in 2012 – the only one in Latvia and the most modern one in the Baltic States. Dobeles Dzirnavnieks currently uses two types of raw materials in pasta production. Presto pasta is produced from soft wheat flour, Dobeles Dzirnavnieks – from hard wheat flour. The company also plans to create a line of spaghetti in the future. Kristaps Amsils, JSC Dobeles Dzirnavnieks Chairman of the Board: „The Latvian market remains the company’s priority. Therefore, we highly appreciate our pasta’s nomination as Import Substitute Product. It makes us continue what we have started. At the moment, work is in progress to complete Dobeles Dzirnavnieks’ spaghetti production line so that buyers would be able to see spaghetti produced in Dobele on store shelves already this autumn. Each competition allows us to mobilize and evaluate ourselves from a different angle.” Website: www.dzirnavnieks.lv Turnover (2012): EUR 88.21 million Number of employees (2012): 180 Export countries: Estonia, Lithuania, Poland, the Netherlands, Thailand, Gambia, Angola 26 „Over the past three years, taking into account Latvia’s limited market, the company’s strategic goal has been to increase turnover on export markets, which has been successfully fulfilled. Our main export goods are flour and now, pasta. Products for local and export markets are adapted to client requirements. Moreover, the efficient production process ensures competitive prices.” At the moment, the company’s main export countries are Lithuania, Estonia, Poland and other European countries. There is also good potential for export to the so-called third world countries with excellent export precursors. Evopipes Ltd. Plastic pipes for engineering communications infrastructure The plastic pipe manufacturer launched its business in 2005 when Modulex-Invest Jelgava Ltd. was established in Jelgava with the aim to develop pipe manufacturing industry in Latvia. The idea of building a production facility was proposed after it was established that transport costs accounted for up to one-third of the imported pipes’ price, therefore it would be rational to make the pipes in Latvia. At the end of 2008, the company was renamed Evopipes Ltd. so the company’s products could be marketed internationally. At the moment, the company, whose turnover on the Latvian market increased more than twofold last year, is focussed on the development and production of innovative and efficiency-raising products. By 2015, Evopipes is planning to increase its annual production and sales volumes to EUR 30 million. „When investments are made in the construction of a facility’s pipe system, material costs account for up to 20% of total investment, therefore quality and durability of the pipe system is of utmost importance.” Edgars Viļķins, Evopipes Ltd. Chairman of the Board: „Evopipes has been successfully cooperating with the Investment and Development Agency of Latvia for several years already, and the company has a very high opinion of this co-operation, and takes great pride in the employees’ professional vision for fostering longterm development with Latvian businessmen. We also have a high opinion of LIAA’s recognition we have earned at several competitions.” Website: www.evopipes.lv Turnover (2012): EUR 16.50 million Number of employees (2012): 79 Export countries: Estonia, Lithuania, Russia, Poland, Finland, Sweden, Denmark, Norway, Belarus, the Netherlands, UK, Kuwait Evopipes makes and distributes products for wiring, cable protection, telecommunication cable protection, cold water supply system development, heating system development, gas supply, building sewerage, wastewater sewage, rainwater drain systems, square and building foundation drain systems. The company notes that the basic values in Evopipes business include professionalism of employees, continious growth and constant search for opportunities to improve product quality. The company’s concept of export development plans to place emphasis on upgrading innovation products’ design. „One of the greatest values of Evopipes is its close-knit team of professionals, which is the most important asset.” For expansion in new export markets, the company participates in international fairs, visits prospective clients and carries out market researches, whereas export countries are chosen depending on the demand for a particular product in a given country. 27 JSC Smiltenes piens Whey protein concentrate Piena spēks (“Milk Power”) JSC Smiltenes piens is one of the largest and oldest dairy processing companies in Latvia, operating for nearly 100 years. Smiltenes pienotava was established in 1912. In 1998, it was reorganized into JSC Smiltenes piens. Piena spēks, the company’s product submitted for the competition, is derived from whey by separating valuable proteins. Piena spēks combines the benefits of cultured dairy products and the ability of protein concentrates to strengthen immunity, particularly during periods of heightened physical and mental exertion. „Smiltenes piens team is always ready for new and challenging ideas. We are investing in new production equipment, choosing the most up-to-date technologies in the industry and trying to attract the European Union’s funding. For example, the whey processing project was implemented by attracting EU funds.” Gita Mūrniece, JSC Smiltenes piens Chairwoman of the Board: „Participation in the competition, organized by the Investment and Development Agency of Latvia, reassures us that we are working in the right direction and our new product is acknowledged and appreciated. With support from the agency, we have participated in several international exhibitions and have achieved results together. Of course, there have also been less successful activities, however, it can be explained by the specifics of each country, which can be learned by participating in exhibitions.” Website: www.smiltenespiens.lv Turnover (2012): EUR 12.23 million Number of employees (2012): 96 Export countries: Russia, Moldova, Estonia, Lithuania, USA, Israel 28 Smiltenes piens performs a full milk processing cycle – milk purchasing, processing, dairy product manufacturing and selling. More than 150 farmers from Valka, Cēsis, Gulbene, Madona, Limbaži, Alūksne and Valmiera regions supply high quality milk to the company. Smiltenes piens is the only company in Latvia and the nearest neighbour countries that produces the special and exclusive cheese “Latvijas” and its slightly spicier brother ”Bakšteins”. Semi-hard cheese constitutes 80% of the company’s turnover and the company also produces milk, kefir, butter, sour cream, cream, skimmed milk, whole milk curd and curd products. Cheese whey processing was launched in 2011 and with it – manufacturing of innovative and healthy products – Piena spēks, lactose, glucose and galactose syrup. The company currently continues to develop its whey products. „The company’s main values are natural and quality production, clients, suppliers, employees and impeccable reputation.” iMedia Ltd. E-mail marketing service Mailigen The company iMedia has developed an e-mail marketing system called Mailigen that successfully competes with similar products abroad. The system offers users to set up a database, improve communication with clients or find out what they are interested in. The platform includes a string of functions, for example, online surveys and dynamic content, making it a unique product in the world’s marketing scene. „The product that we entered in the competition had been launched on the market in 2010. Initially, Mailigen was only meant to operate as an e-mail marketing service, but it has been developing at a fast pace and now has gone beyond the boundaries of the traditional e-mail marketing, becoming a platform that combines e-mail, mobile and social network marketing.” About 90% of Mailigen users are foreign clients, whereas Latvian clients make up the remaining 10%. On the Latvian market, Mailigen is the leading provider of email marketing services. The main target markets abroad include the USA, China, India and CIS countries – Russia and Ukraine. Mailigen is currently exported to more than 70 countries in five continents. Artūrs Bernovskis, iMedia Ltd. Chairman of the Board: „We are pleased to receive the recognition in the competition, as the example of our exports can also motivate other Latvian start-ups. State support has been of great importance to us, as it made it possible for us to participate in international fairs and to present our brand abroad.” Website: www.imedia.lv Turnover (2012): EUR 399 000 Number of employees (2012): 23 Export countries: USA, China, India, Russia, Canada, UAE and other countries, more than 70 in total The company believes that, given that the Internet environment is a market with immense information capacity, the simple development of an online website or portal is like blinking in the dark, where you are the only one who knows about your existence. iMedia gives every company the opportunity to make its brand name stand out in the Internet information jungle and to create long-term relations with its clients. „Online marketing is one of the most dynamic and changeable business environments. What is hot today will be a thing of the past tomorrow, therefore our work, team and ideas are dynamic too. Innovations are of crucial importance for a small Latvian company to be able to compete with global giants. We have created a unique marketing platform with a large number of functions and solutions that we offer to global business leaders.” The E-mail marketing service Mailigen is currently available in six languages: Latvian, English, Russian, Estonian, Chinese and Persian. The system will also be available in other languages, for instance, German, Spanish and French. 29 JSC Latfood Potato chips, sweet and savory snacks JSC Latfood is the leading Latvian potato processing company whose core business is production and distribution of potato chips, salty and sweet snacks. The company was established in 1993 and its products are known under two brands: Ādažu čipsi, which in 2012 placed third in Latvia’s Favourite Brand Top in the sweets and snacks category, and Taffel, the company’s brand for exported products. The high quality of Latfood products is guaranteed by the raw materials: oil, spices, and potato grown specifically for the company by twenty Latvian farms. On the domestic market, Latfood sells Ādažu čipsi, whereas products under the brand Taffel are sold not only in Europe, but also in Georgia, Kazakhstan, Azerbaijan and Australia. „The company’s turnover is growing on an annual basis, creating new development opportunities. Taking and keeping the high position on local and export markets is ensured by the responsibility to our clients, importance of innovations, green thinking and high quality standards on each pack of chips.” Valdis Blūms, JSC Latfood Chairman of the Board: „Participating in the Export and Innovation Award 2012, the company used the opportunity to take a detached look at its results and to compare them with other companies’ experience. It was also a chance to remind consumers and co-operation partners about ourselves. Thanks to the competition, internal motivation rose at the company, because every employee was pleased at the high recognition.” Website: www.cipsi.lv Turnover (2012): EUR 13.88 million Number of employees (2012): 146 Export countries: Lithuania, Estonia, Belarus, Russia, Kazakhstan, Azerbaijan, Turkmenistan, UK, Ireland, the Netherlands 30 Latfood regularly invests in modernisation of production facilities, thereby creating new development opportunities and offers to consumers. The company supplies its products to 300 wholesale and retail outlets every day. The team of Latfood sales representatives make sure that all orders are timely processed by making systematic visits to the existing clients and looking for new co-operation partners. „On the Latvian market, Latfood is a stable market leader in the potato chips and salty snacks segment, but by 2018 we are planning to become the leader in the Baltics by also attaining the number one spot in Estonia and Lithuania.” Five potato varieties are used in the production of Ādažu čipsi and Taffel products: Saturna, Marlena, Lady Claire, Lady Rosetta, and Verdi. The main criterion when a new potato variety is considered for cultivation is high quality of chips that will be made of the potatoes, as well as long storage life. Of great importance is the variety’s suitability for the climatic conditions of Latvia – and high yield. The company is planning to deepen co-operation with Latvian farms in the future, because the volume of potatoes bought from the farms will significantly increase in two to three years. Liko-R Ltd. Eeyeglass lenses Liko-R was established in 1993. Initially, the company’s main area of operation was to distribute products made by the Italian company Luxottica Group in the Baltics. However, in 2005, the company began to develop and manufacture glass lenses with high added value. Using the latest equipment, with highly precise digital lens technologies, Liko-R manufactures specialized lenses for individual orders, meant for persons with complicated vision problems. The advanced glass lenses manufactured by Liko-R solve two problems at once, as they easily blend the transition from looking into the distance and reading up close, while at the same time look like regular spherical glass lenses. „The company continues to closely follow along the latest glass lens technologies, as well as the most modern materials used to manufacture lenses. Thanks to our extensive circle of cooperation partners, we are always the first in the Baltics to offer the latest in optical trends.” The company sees good opportunities in the Russian and Belarus markets, as the distribution of advanced glass lenses in these countries is at a lower level than in the Baltics due to their complexity. Linards Kovaļevskis, Liko-R Ltd. Director: „The main advantage of our company is the ability to manufacture highquality glass lenses in a short period of time. We also offer direct consultations on the most suitable glass lenses for each individual order, as well as manufacture more complicated products, for example, sunglasses with diopter lenses. Our motto is – a safe and healthy view on the world.” Website: www.likor.lv Turnover (2012): EUR 1.23 million Number of employees (2012): 13 Export countries: Lithuania, Estonia, Russia, Belarus The main condition which determines the selection of export markets is knowledge of the optical markets in these countries, as well as previous experience working in these markets. The main priority of Liko-R is to increase sales volumes of its manufactured glass lenses, as well as to continue increasing the proportion of exported products. In 2011, this proportion reached 11% of total turnover, in 2012 – 15%, while it should see a two-fold increase in 2013, the company predicts. „Participation in competition and the praise we have received have been very good, and there is constant incentive for us to achieve our export goals, so that in the coming years Liko-R could participate in these competitions as a leading exporting company.” Liko-R employs experienced specialists who are experts in their field. Furthermore, the company also utilizes support instruments from other countries and the EU to attract new employees, as well as to train current employees. 31 Category Industrial Design 1st place – Rīgas Krēslu fabrika Ltd. for stool Bloom 2nd place – A.DEW Ltd. for HUGU teddy bear 3rd place – Daiļrade koks Ltd. for home office furniture ELF Recognition: Dekoru fabrika Ltd. for wooden scooter Duksis Latvijas Humusvielu institūts Ltd. for product line Humate Green OK MWF Ltd. for toy-chair Pally Rīgas Krēslu Fabrika Ltd. Stool Bloom Since 1999, Rīgas Krēslu Fabrika (Riga Chair Factory) has been producing highquality and ergonomic office chairs. The company believes that it is very important for the chair user to feel good and comfortable while sitting. When producing their various chair models, the factory’s specialists choose only the highest quality mechanisms and durable materials. The company’s competition entry – a line of stools called Bloom, is extremely light and made of wavy plywood. The name of the stool was inspired by its flower shaped form. When developing new products, Rīgas Krēslu Fabrika pays much attention to details, functionality, comfort, as well as effectiveness in the manufacturing process. Furthermore, as an advantage of being a local company, Rīgas Krēslu Fabrika offers complete service after sale – the company provides perfect lifetime quality of the chair during the warranty period, as well as after it expires. „The goal of Rīgas Krēslu Fabrika in the near future is to create a recognizable brand throughout Europe in shaped plywood furniture.” Aldis Circenis, Rīgas Krēslu Fabrika Ltd. Chairman of the Board: „We choose our export markets after analyzing consumer attitude towards design. As we classify products as similar to Scandinavian esthetics and mindset, the direction of our export becomes almost automatic. This is mainly Western Europe, USA and Australia.” Website: www.rkf.lv Turnover (2012): EUR 657 000 Number of employees (2012): 18 Export countries: Finland, Sweden, Denmark, Germany, France, UK, Belgium, the Netherlands, Italy, Australia The production process itself is complicated due to the unpredictability of the materials used. One of the characteristics of the designer furniture market is limited sales volume, due to the reason that a distribution network is made up of several stages. Hence the final price consumers pay is substantially higher. „Coming up with good designs for new products is often a very innovative process in and of itself. To put together complicated shapes and effective elements, it is usually necessary to take an original and unprecedented approach. In order to ensure this, the qualification and enthusiasm of our employees is of huge importance. This characteristic is also a perfect way to describe those working at Rīgas Krēslu Fabrika.” Rīgas Krēslu Fabrika’s cooperation with the state has been highly successful, for example, with the support from the Investment and Development Agency of Latvia, the company has participated in three international exhibitions in Europe, as well as implemented a project which supports the introduction of new products for manufacturing. Meanwhile, participation and success in the Export and Innovation Award 2012 has provided the company with additional confidence that the path it has taken was the right one. 33 A.Dew Ltd. HUGU teddy bear A.Dew is a new textile company. It was established in 2010. The company’s main operational direction is a hand-knitted teddy bear with a specifically-developed design concept and brand name - HUGU. The HUGU teddy bear, the company’s product submitted for the competition, is knitted according to a special pattern and stuffed with genuine Latvian wool. Each teddy bear’s face and design is unique handwork with delicate details – Swarovski crystal eyes and paws felted with a special needle and technique. „From a business perspective, the HUGU teddy bear is a complicated product with a time-consuming production cycle, limited production capacity and special marketing, requiring extra attention and investment.” A high quality audio system, capable of recording and storing natural voice recordings, lies in the heart of HUGU. The audio system is also made in Latvia and is individually tested several times before the product is deemed ready. Being made in Latvia, HUGU popularizes Latvia abroad and is available in Japan, USA, the Netherlands, Germany and soon also in Russia. Lauris Rasa, A.Dew Ltd. Head: „When thinking about export, it is necessary to take into account that each country has its own specifics for cooperation connected with distribution, logistics and certification matters. Therefore, it is highly important for the Investment and Development Agency of Latvia to have greater opportunities of organizing various national display stands, giving new companies a chance to show themselves.” Website: www.hugu.lv Turnover (2012): EUR 25 000 Number of employees (2012): 2 Number of employees on contract basis (2012): 20 Export countries: Japan, USA, Russia, the Netherlands and Germany 34 HUGU team knows that some people around the world find such teddy bears interesting and special, because HUGU includes those personal and human emotions that are granted to the teddy bear by the one presenting it as a gift. „HUGU’s most important mission is to record and store true, sincere human feelings that we want to pass on to people that are close to us, our loved ones. Therefore it is not only a high quality exclusive design product, but also something very special for everyone ever to receive it.” A.Dew is primarily interested in Russian, USA and UAE markets, where it is necessary to participate in exhibitions to match the company’s specifics and operations. Daiļrade koks Ltd. Home office furniture ELF The company began making the product participating in the competition – the home office furniture ELF, in May of 2012, and received the first order from Germany’s Baur Versand in the autumn of the same year. The furniture collection is ideal for setting up small spaces, and has achieved renown among clients from not only Germany, but also Austria and Netherlands. The furniture is manufactured from curved laminated birch plywood, and the trim is made of easy-to-clean and durable plastic. The furniture was designed by Miks Pētersons. The ELF collection includes a table, chair, filing cabinets of various sizes, and a TV and wall shelf. At the moment, prospective clients from France, Switzerland and Lithuania are inquiring about the collection. „We pay great attention to investment planning and production management, and are very careful in choosing and implementing new technologies to attain the highest quality of our products.” Andris Jansons, Daiļrade koks Ltd. Chairman of the Board: „The company’s basic values include being modern, flexible and a quality leader in terms of product design and client service, as well as being a reliable co-operation partner and the best employer in the industry, with an efficient employee motivation system.” Website: www.dailrade.lv Turnover (2012): EUR 13 million Number of employees (2012): 291 Export countries: Finland, Germany, Austria, Switzerland, the Netherlands, USA Daiļrade koks was established in 1994 and has by now become one of the leading furniture producers in Latvia. The company specialises in making furniture from solid pine and birch and furniture from painted MDF and veneered particleboard. According to clients’ wishes, the furniture may be treated with lacquer, oil, stain, wax or paint. Besides furniture production, the company also deals wholesale and retail trade of furniture parts and various finishing materials. „Although production of curved laminated plywood involves high start-up costs, the company has appreciated the opportunities provided by own-design products, and it has done everything in its power to launch serial production of its products.” The company uses only top-quality wood, furniture parts and finishing materials. One advantage of Daiļrade koks is that several materials may be combined in making a product, which makes the company very flexible when it comes to clients’ requirements. The key to Daiļrade koks success is its long-time and successful co-operation with furniture importers in Germany, Denmark, Finland, USA and other countries, which made it possible for the company to increase its export volumes and turnover on an annual basis. 35 Dekoru fabrika Ltd. Wooden scooter Duksis Dekoru fabrika Ltd. started out in 2009 as a wood carving restoration workshop, bringing to the market gifts and souvenirs, as well as professional high-quality wood carvings. At the moment, its main business line is manufacture of wood carvings, souvenirs, design elements, laser engraving and 3D scanning. Dekoru fabrika is creative in everything it does, therefore it is always pleased to meet the individual needs of a customer. The company’s products are made of local wood, and one of the company’s main principles is to foster the sales of Latviamade products and support the use of environment and human-friendly materials. The company is constantly developing and making new products. The idea of Duksis, a wooden scooter made of sturdy birch plywood that was nominated to participate in the competition, goes back to childhood memories. Duksis is a comfortable vehicle meant for kids one and a half to four years old. Juris Ozols, Dekoru fabrika Ltd. Chairman of the Board: „We take our greatest pleasure and joy in that we can do work that we love and are passionate about. And the pleasure is double when our efforts are also recognised by other people. The positive feedback of clients and prestigious awards, such as the Export and Innovation Award that is organised by the LIAA.” Website: www.dekorufabrika.lv Turnover (2012): EUR 54 000 Number of employees (2012): 4 Export countries: Denmark, Germany, and company’s products are also marketed, via co-operation partners and Latvian clients, in Norway, Portugal, Egypt 36 The company believes that much can be achieved by combining time-tested knowledge and traditional carpentry expertise with the opportunities offered by modern technologies, creativity, diligence and enterprise. „Our strength lies in our roots and our professional team, whereas the key to future success is positive thinking and progressive technologies.” One of the greatest Dekoru fabrika achievements is the restoration work at the Riga Bourse building, where the historic wood carving elements were restored with utmost precision. The project was implemented by combining traditional woodcarvers’ skills with modern and progressive 3D scanning equipment and opportunities offered by programmable workstations. Similar technology is employed by Dekoru fabrika to restore wood carvings on chairs and machine-turned wooden parts at the Riga Castle according to authentic samples. The company is planning to produce and assemble chairs for the Riga castle in co-operation with carpentry section of RE&RE Ltd. Latvijas humusvielu institūts Ltd. Product line Humate Green OK Latvijas humusvielu institūts (Latvian Institute of Humic Substances) was established with the aim to develop innovative technologies, making it possible to make products containing humic substances that could be extensively used in agriculture. The product’s package design was created so the product can be easily recognised, convenient to use and able to withstand the influence of direct light and temperature fluctuations. „The innovative technologies developed at the institute enable the use of Latvian humus in the production of organic and organomineral fertilisers containing humic substances.” The product line Humate Green OK, that was nominated for the award, includes high-quality, natural, human and environmentally-friendly organic fertilisers that contain natural humic substances. The fertilisers provide a richer and healthier harvest and a brighter blooming garden with less expenditure. Latvijas Humusvielu institūts opened its production facility in 2010, launching the production and sale of products under the Humate Green OK brand name began. Oļegs Kukainis, Latvijas humusvielu institūts Ltd. Head: „Taking into consideration our production capacity, in the future the institute is planning to conduct research on the use of humic substances in other industries, too, for instance, in cattle breeding, veterinary medicine, recultivation and cosmetics. That is why the company is actively looking for co-operation partners, both in the research on humic substances, development and implementation of new technologies, as well as development of business co-operation.” Website: www.greenok.lv Turnover (2012): EUR 29 000 Number of employees (2012): 7 Export countries: Lithuania, Estonia, Poland, UK, Africa By employing a unique cavitation technology in humus treatment, the company achieved that the Humate Green OK product contains no less than 20 grams of humic substances per litre. The company is planning to put out at least 1,000 tons of the product annually. Several research studies have confirmed that the Humate Green OK product possesses biological activity, that the product contains microflora that has a favourable effect on growth of plants, and that it may be used in practice in agriculture. At the moment, Latvijas humusvielu institūts research and product development are targeted at agricultural use of the product. A number of studies have been carried out in collaboration with scientific research organisations of Latvia to determine the biological efficiency of Humate Green OK, and the researchers found that Humate Green OK has outstanding biological activity and can be used in practice in agriculture. „At the moment, we are looking at the possibility of also using humic substances in the cosmetic industry and in production of construction supplies.” 37 MWF Ltd. Toy-chair Pally MWF Ltd. is a new company, established in 2011. The company’s main products are solid wood kitchen furniture, living room and bedroom suites, tables, beds, stairs and children’s furniture. The company also manufactures traditional yet exclusive country-style kitchen furniture. Pally, the company’s toy-chair submitted for the competition, is a successful design product that can be used as a toy or a seat, since it is made of coloured wooden pegs. The product was created by Finnish designer Laura Väinölä. Pally stimulates the imagination, spurs creative thinking, develops memory and is intended for children above the age of three. Local wood materials are used in the product’s manufacture. „The company’s goal – to operate on export markets - was defined the moment it was established. This strategy was chosen not only due to the local market being too small. Operations on several markets diversify risks.” C Evita Jansone, MWF Ltd. Chairwoman of the Board: „The recognition indicates that a small company is also capable of standing next to giants and demonstrating its capabilities. The company is delighted with its accomplishments, which motivates us to continue working. In addition, participation in the competition allowed the company to increase public recognition. It was also an opportunity to take a look at oneself from a different perspective and assess the next tasks.” Website: www.mwf.lv Turnover (2012): EUR 44 000 Number of employees (2012): 6 Export countries: Finland, the Netherlands 38 MWF currently sells its product mostly on the Latvian market. However, it is planned that the company will be selling 60-70% of its production on foreign markets in five years. The first MWF products were exported around a year and a half ago. Export market operations give the company significant experience in competition, thus improving the quality of its products. At the moment, there are 11 employees at the company. More employees will be hired due to the company’s export plans. MWF team consists of people of various ages, with diverse knowledge and experience. Therefore everyone has his own field that he knows best and, by working together as a team, it is possible to combine everything and achieve results. „In the future, we see MWF as an exporting company, and we are also planning to increase production capacity each year. This year, we have decided to increase the company’s turnover to EUR 142 280. The increased capacity will allow the company to be more competitive on foreign markets.” M Y CM MY CY CMY K Investment and Development Agency of Latvia Address: Pērses iela 2, Rīga, LV-1442, Latvia Phone: +371 67039499, fax: +371 67039401 E-mail: liaa@liaa.gov.lv www.liaa.gov.lv www.exim.lv www.polarisprocess.com The mission of the Investment and Development Agency of Latvia (LIAA) is to promote growth of the economy of Latvia. Accordingly, the objective of LIAA is to promote business development by facilitating increased foreign investment, while elevating the competitiveness of Latvian entrepreneurs in both domestic and foreign markets. With 20 years of experience in attracting of foreign direct investment to Latvia and promoting foreign trade, the Agency has worked continually to improve the business environment and provide services appropriate to the needs of business. Following Latvia’s accession to the EU in 2004, the Agency needed to adopt new methods and tools, including the effective utilisation of resources from EU Structural funds. Today, LIAA offers an integrated solution – it supports companies in Latvia trading internationally as well as overseas businesses seeking partners or locations in Latvia and administers state support programmes for entrepreneurs co-financed from EU Structural funds. To ensure high quality communications with customers the Agency has representative offices in Minsk (Belarus), Beijing (China), Copenhagen (Denmark), Paris (France), Berlin (Germany), Tokyo (Japan), Vilnius (Lithuania), The Hague (the Netherlands), Oslo (Norway), Warsaw (Poland), Moscow (Russia), Stockholm (Sweden), London (UK) and Kiev (Ukraine). An ability to anticipate the rapidly changing needs of businesses and markets by offering new services characterises the Agency’s own competitiveness, built on the knowledge and competencies of our experienced specialists. LIAA pays close attention to the quality of its own performance, comparing it with world best practices, and subsequently introducing new services and solutions for our customers. In recognition of LIAA’s competitive and high quality services, Investment and Development Agency of Latvia has received the UNCTAD (United Nations Conference of Trade and Development) Investment Promotion Award for excellence in promoting export-oriented FDI. The award has been presented during the UNCTAD annual session of the Investment, Enterprise and Development Commission. We look forward to helping your company succeed in Latvia!