Valmiera Glass Group’s 2016 9-month consolidated net turnover reached EUR 98.89 million,  it’s investments in production reach EUR 11.55 million

In the first 9 months of 2016, the consolidated net turnover of Valmieras stikla šķiedra JSC and its subsidiary companies (hereinafter referred to as Valmiera Glass Group or the Group) reached EUR 98.89 million, thus repeating the indicator reached in the corresponding period in 2015. The Group has invested EUR 11.55 million in production development during the reporting period, whereas its net profit has reached EUR 4.5 million within the first three quarters of this year and is 32% less than the profit reached in the corresponding period last year.

The decrease in profit can be explained by the fact that, during the second and third quarters of 2016, the Group’s parent company faced situations in its production that required the rebuilding of one of its glass-melting furnaces. This prevented the company from producing the necessary volume of products within a certain period of time, as a result of which it had to compensate for the amount of glass fibre that was lacking by purchased products elsewhere. Another reason for the decrease in net profit is the deferred corporate income tax stemming from investments in the Group's development in recent years.

Compared to previous years, the Group has experienced a record number of orders this year. Positive growth trends have been observed in the world glass fibre market. The demand for glass fibre products has been extremely high and much greater than the Group could supply to its clients.

The 3rd quarter of 2016 was significant for Valmieras stikla šķiedra JSC due to the completion of two major investment projects to increase the company’s production capacity and ability to meet the growing demand for glass fibre products in the market. One glass-melting furnace has been reconstructed, which now operates with an additional 30% production capacity, and a new glass-melting furnace has been constructed for a patented type of glass which is unique in the world and widens the range of the portfolio of products for the heat insulation market.

Andre Schwiontek Chairman of the Management Board of Valmieras stikla šķiedra JSC, states that “both large-scale and technologically complicated long-term investment projects have been accomplished, and thus all the pre-conditions are in place to further increase production volumes of and sales, thus improving the company’s overall performance and the Group’s turnover and profit indicators”.

Within the first three quarters of 2016, the Valmiera Glass Group employed 1152 employees, out of which the number of employees employed by Valmieras stikla šķiedra JSC alone is 974. Whereas the subsidiary company Valmiera Glass UK Ltd., during the first 9 months of 2016, employed 133 employees on average, and the subsidiary P-D Valmiera Glass USA Corp., - 45 employees.

About Valmiera Glass Group:
Valmieras stikla šķiedra JSC and its subsidiaries (hereinafter referred to as the Valmiera Glass Group or the Group) is one of the leading glass fibre manufacturers in Europe. Valmiera Glass Group companies operate in three countries on two continents: Latvia, the United Kingdom and the United States of America. Valmieras stikla šķiedra JSC production facilities have more than eighty years of experience in textile processing, and their products are aimed at various industrial markets. The Group consists of four companies: the parent company Valmieras stikla šķiedra JSC and its three subsidiary companies - Valmiera Glass UK Ltd. in the United Kingdom, Valmiera Glass USA Corp. and Valmiera Glass USA Trading Corp. in the United States of America.

Contacts:
Marika Nīmante
JSC „Valmieras stikla šķiedra” marketing project manager
Phone: +371 64202276, +371 26635509
Fax: +371 64281216
E-mail: Marika.Nimante@valmiera-glass.com
More information about company: www.valmiera-glass.com