BlueOrange Bank grants €6.58 million to “iCotton” for business development of the company
May 07, 2020
The Liepaja-based hygiene product manufacturer “iCotton” has invested € 6.58 million in the development of the company with funding provided by BlueOrange and with the support of the Central Finance and Contract Agency (CFLA). The funding is intended for the reconstruction and extension of the factory building and for the purchase of equipment. The purchase of the new equipment will help expand the range of products of “iCotton” with women's hygiene products, antimicrobial wet wipes and innovative raw materials of cotton fabric for the production of various hygiene products and personal protective equipment.
“We are pleased to see companies amongst the Bank clients that, despite various restrictions, continue to develop at a fast pace. The funding allocated to iCotton will provide for a significant increase in both the production capacity of the company and the creation of new jobs, which are of utmost importance. Being aware of the major role played by crediting in sustaining the business growth and the economy as a whole, in 2020 BlueOrange is maintaining its planned lending volume at the level of €150 million, thus actively supporting local small and medium-sized companies” notes Dmitrijs Latisevs, Chief Executive of BlueOrange Bank.
The construction and expansion of the production plant will allow the company to increase its production site by 1200 m2, the total area of the industrial and warehousing complex of “iCotton” reaching 27 000 m2. The construction and harmonisation phase of the project is scheduled to be implemented by September–October 2020, while the deadline for the purchase of new equipment is set to November–December 2020. The largest part of the funding allocated, or € 5.23 million, will be allocated for the purchase of equipment. The total funding allocated by BlueOrange to “iCotton” currently amounts to €14.3 million.
Thanks to the expansion of the production complex and the modernisation of the production line, the company plans next year to increase its annual average turnover to €45–50 million, which is a 80% increase compared to the year 2019. This year, the company has already managed to increase its sales and market share in its current markets in the UK and elsewhere in Europe.
“iCotton” currently employs 115 people, and the development plans provide for the creation of more than 65 new jobs by the end of the year.
“In 2019, the turnover of “iCotton” increased to €25 million, which is an increase of more than 45% over period of two years. Meanwhile, in the first three months of 2020, the company's turnover reached €6.5 million, which is at the same level as in the first quarter of 2019. The wide range of products, quality, innovation has allowed the company to increase both its production and turnover, so that over the next few years our priority will be the modernisation of the company, increasing its product range and attracting skilled professionals to work in the company,” says S. Binkovskis.
Photos: Reconstruction of “iCotton” production site in Liepaja, Pulvera iela 4a.