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VSS: JSC “Valmieras stikla šķiedra”: The electricity field has to be adjusted, so the manufacturing branch wouldn’t be in damage

Spekuliantai.lt | 2013-02-05 | NASDAQ OMX biržų naujienos | perskaitė: 1339
Raktiniai žodžiai: Valmieras stikla skiedra, VSS
VSS: JSC “Valmieras stikla šķiedra”: The electricity field has to be adjusted, so the manufacturing branch wouldn’t be in damage

Valmieras stikla škiedra Company Announcement 05.02.2013

JSC “Valmieras stikla šķiedra”: The electricity field has to be adjusted, so the
manufacturing branch wouldn’t be in damage

Referring to the decision of “Liepājas metalurgs” board to stop paying
mandatory procurement component, the management of JSC “Valmieras stikla
šķiedra” notes that the electricity field in the Latvia has to be adjusted
eventually, so the activity, further development and growth of manufacturing
companies wouldn’t be in damage.

“We haven’t thought about doing similar like “Liepājas metalurgs”, we have
always been correct in paying electricity and we will do it further, but still
the overall situation is serious and solutions are required,” says the
President of JSC“ Valmieras stikla šķiedra” Andris Oskars Brutāns.

The payment of mandatory procurement component has grown thrice. In this year
it increased by 54 percent over the previous year, and the megawatt hour of
so-called green energy costs 18,00 Lats. “This price increase for one of the
most important costs of production is very rapid, unpredictable and large and
in general it damages energy-intensive business’s activities and progression.
If at 2012 we have paid almost 1 Million Lats for the mandatory procurement
component, this year we will pay one and a half Million Lats. This doesn’t
promote our competitiveness in the markets,” notes Andris Oskars Brutāns.

“I think this is not a normal situation that in Latvia the burden of the green
energy and energy produced by cogeneration plants with fossil fuels is one of
the highest in the European Union. It inhibits the development and don’t allow
to think about the raising the salaries in the branch, as well as to invest and
to do other activities for competitiveness. Due to this indigested policy we
are there where we are – one of the poorest countries in the European Union
with the tendency of emigration looking for a better life abroad.”

“The disorganized area may have a significant impact on the future of JSC
“Valmieras stikla šķiedra”. Our shareholders are actively monitoring the
processes in the country and the uncertainty about the electric energy prices
and policy may result in the denial of further investments in the company’s
development. In an adverse business climate are the actors trying to find
reasons for changing the situation and, if we think deeper about it, it is easy
to bring the textile equipment to another country and to open another factory.
After the service life of the glass melting furnace can this factory, having 50
years experience, produce outside Latvia taking their specialists with it,”
A.O. Brutāns explains the seriousness of the situation.

“This is a neglected problem,” thinks the President of JSC “Valmieras stikla
šķiedra”. He notes that at the moment there are two possibilities to improve
the situation: “Firstly, the existing support payments have to be reviewed and
revised otherwise we will be the ones who pays the most in the Europe.
Secondly, the time period for paying mandatory procurement component for
production of the green energy and energy produced by cogeneration plants with
fossil fuels should be definite. It should be provided that the mandatory
procurement component is paid till a definite time period and the green energy
producers develop as independent and competing market players. Otherwise is the
mandatory procurement component a large tax with unlimited duration for the
companies without the clarity of the sums for future accounts.”


Marika Nīmante
JSC „Valmieras stikla šķiedra” marketing project manager
Phone: 64202276, 26635509
Fax: 64281216
E-mail: [email protected]
More information about company: www.vss.lv
Follow company: Facebook.com/ValmierasStiklaSkiedra

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