iCotton to build a new production facility

Italian-Russian joint venture in Latvia, iCotton plans to build a new 10,000 square meters production facility in Liepaja, according to the company’s CEO Sergey Binkovskis. The building the hygiene products manufacturing company is currently using, was opened as the company’s facility in September, 2015. "It was an old sports arena. We improved it to serve the needs of our company. The land that will be developed next is located directly next to the current manufacturing facility, so we will have two facilities conveniently located side by side, which from the logistics point of view is very well. We need to expand as we already are short on warehouse and production space," he said.

When iCotton first began operating in Latvia’s southwestern city of Liepaja in 2013, the company initially rented space from the lingerie company Lauma, where it is still currently renting 12,000 square meters. In the new housing that was opened in 2015, the company has 4,000 square meters, while the new parcel it plans to build will have a production facility of 10,000 square meters.

"At the moment the application for EU funds for regional subsidies is open. The Kurzeme region has around five million euros in EU available funds, and we also would like to take part in it, "he explained. We plan approximately 10-12 million euro investment in building the new manufacturing facility," said a company spokesman.

Earlier in 2016, the company announced that it is launching a new production line that will give the company an opportunity to begin the production of new cotton products – non-woven fabrics, cotton pads and swabs. The company manufactures wet wipes, baby diapers and cotton hygiene goods and employs 180 people. iCotton has established export markets in Poland, Italy, Sweden and the Czech Republic. iCotton also has distribution networks in Ukraine, Belarus, Kazakhstan, Moldova, Tajikistan and Uzbekistan, and it is actively engaged in ongoing negotiations with potential partners from UK.

iCotton chose to launch a business in Latvia as it was looking to establish a manufacturing facility in one of the European Union countries to reach the European markets. The primary reasons for coming to Latvia were the country’s workforce quality, especially the language skills, advantageous manufacturing costs and the central location. Located in the Baltic Sea port city of Liepaja, the company benefits from receiving corporate income tax (CIT) rebate for its initial long term investment in Latvia.

Source: LETA