Acquiring the former SAGA factory “Laiko” i Latvia is to ensure growth for wood and furniture company Kvist Industries A/S in Denmark.

Back in 2008 the Latvian production company was one of the largest providers of veneer and moulded components i Norhtern Europe. The financial crisis with the 50 percent decrease in the market, resulted in Swedbank taking over the SAGA in 2009. The production facilities as well as a part of the production have been maintained.

”Danish employees are already at the factory in Latvia, where the current production will be consolidated. Before new tasks are addressed, the factory setup needs to be brought to Scandinavian standard. Production costs are attractive in Latvia, but we have to ensure quality and efficiency, if we are to secure the investment in the long term” says Søren Kvist, Production Manager in Kvist Industries A/S.

The factory in Latvia should be ready for production by April 2012. It is expected to have approximately 100 employees and the main production will be veneer and moulded components in birch. Kvist Industries will maintain their production unit in Slovakia with 50 employees, where the production in the future primarily will be of chairs and other components in solid wood such as beech, oak and ash.

”The capacity at the facilities in Slovakia were at the limit long ago, which is why purchasing the facilities in Latvia allows for further development. We hold a strong position on the markets in Denmark and Norway, but with these new physical facilities and SAGAs historic position in Sweden, we believe in future growth”, says Michael Kvist, Managing Director of Kvist Industries A/S.

Kvist Industries A/S employ 80 people at the factories in Denmark. The production units abroad have ensured the company’s competitiveness and contributed to KVIST coming through the crisis that hit the industry very hard in 2008.

The market is still not growing, but has stabilized. Short term no changes are expected regarding staff in Denmark, where all sales and development activities remain.

Further information:

Managing Director

Michael Kvist
Kvist Industries A/S
Siggårdsvej 2, 6818 Årre
Tel.: 76 77 45 00
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