An investor attracted by LIAA comes to Latvia with more than 65 million investments

An investor attracted by LIAA comes to Latvia with more than 65 million investments

On June 3rd the management of Norwegian company “BAU-HOW AS” (www.bau-how.com) has officially announced its establishment in Latvia. Further, in Ventspils BAU-HOW will produce modules for construction of buildings using innovative technology developed and patented by the company. Everything produced in Latvia will be exported.

This is the largest investment project attracted by the Investment and Development Agency of Latvia (LIAA) since 2004. Total amount invested by “BAU-HOW AS” will be 65.5 MEUR.

The strategic goals of the company in the period from 2010 to 2013 are targeted at construction of 4 factories in Ventspils with total manufacturing capacity of approximately 600 000 square meters of modules per year. Total manufacturing capacity would ensure establishing of high value added product sector in Latvia in the amount of at least 420 million lats per year. Furthermore significant part of the financing would be devoted to research and development not only at BAU-HOW, but also at other companies, which would supply raw materials to BAU-HOW.

It is planned to commence production in the fall of 2009 at currently leased premises, where the company will invest 5.5 MEUR. In the first phase the manufacturing plant will provide jobs to 150 people, and it is planned to create up to a 1000 jobs when all five project stages are completed.

The investor has researched Latvia as a potential location for new manufacturing plant for several years. In 2007 LIAA was addressed, and in close cooperation with LIAA the most suitable solution was found.

During the period of two years several potential locations were assessed, until the territory of Ventspils Free Port Authority was selected as the most suitable location. “BAU-HOW Baltic” plant will be located in the territory of the Special Economic Zone, and it will ensure positive impact on the activity of the company.
Close cooperation with the LIAA, Ventspils municipality and the Free Port Authority shall be noted as an important factor for successful project implementation.

Mr. Ulf Åberg, „BAU-HOW AS” AS Chief Executive Officer: “In choosing a location for „BAU-HOW Baltic” production facility, we prioritized direct access to port, combined with advantageous business environment, relevant territory that ensures the building of at least four production facilities and access to qualified workforce. That’s why we chose Latvia and the city of Ventspils.”

 “BAU – HOW Baltic” Ltd. is one of the daughter companies of “BAU-HOW AS” (Norway). Other companies and representative offices within the group (located in all Scandinavian countries and Germany) ensure marketing and sales activities, as well as patent applications and further product technology development.

The company has developed highly flexible, patented and cost effective modular off-site manufactured construction technology and manufacturing system. The industrialized production technique enables producing cost efficient buildings with a superior technical standard and with much shorter construction periods. The flexible BAU-HOW building system offers freedom in design, as it is the construction process that has been standardized, not the buildings. 

Video presentation about the project is available here: http://reel.dk/bauhow/
Director of LIAA Mr. Andris Ozols notes: „From the investment project like this Latvia will benefit as a country and the merits are certainly not limited to the city of Ventspils. Considering the business nature, BAU-HOW will require many suppliers such as producers of metal frames, concrete, windows and doors, fittings, providers of transportation and logistics services. The new investment also transfers into new business opportunities for existing Latvian companies.” 

Ventspils City Major Mr. Aivars Lembergs says: „I am very pleased that during these challenging and difficult times not only for the local construction market but also for the entire Latvian economy, the new and innovative construction industry player will start its operation in Ventspils. In particular, it will result in creation of 200 new work places for the citizens of Ventspils during the first phase of the investment plan. We are thankful to the Investment and Development Agency of Latvia for their work so that the Investment Project can be realized.”

From right: Mr. A.Lembergs, Ventspils City Major, Mr. A.Ozols, Director of LIAA; Mr. V.Čamāns, „BAU HOW Baltic” President; Mr. Ulf Åberg, „BAU HOW AS” Chief Executive Officer, Mr. R.Dakters, Head of Investment Promotion Division, LIAA

BAUHAU MILESTONES:

• 1996: Research
  After reviewing over a hundred different types of building systems, architect Hans-Bert Klersy concluded that all the systems had the unfortunate characteristic of drastically lacking in architectural freedom.
• 1998: A new building system
  Klery’s dissatisfaction with the flexibility of construction systems inspired him to work on a new construction system. This new construction system uses steel and concrete as the primary construction material.
• 2000: 35,000 m² of industrialised building projects
• Between 2000-2004 BAU-HOW tested the new construction system and erected up to 35,000 m² of office and residential projects in Germany, Sweden and Norway.
• 2006: Restart and securing a strong capital base
  To construct a new building system for industrialized construction is one thing, but to standardize the construction is something completely different. A strong capital base was secured in the fall of 2006 to establish a solid foundation for the restart and development of the company.
• 2007: Securing the land
  After conducting careful studies, BAU- HOW chose the city of Ventspils in Latvia as the perfect location for BAU-HOW’s factory hub.
• In 2007, BAU-HOW secured land in Ventspils that is large enough to hold up to four factories.
• 2008: Management with 220.000 m²+ behind them
  BAU-HOW recruits its management team. The team consists of well-known Scandinavian specialists with experience from more than 220.000 m² of industrialized building projects. Their background is either in the construction or the manufacturing business.
• 2009: BAU-HOW production begins
  After three years of careful planning, BAU-HOW recruits top management team in Latvia and will begin production of the first Latvian factory in Ventspils in the fall of 2009.