According to the rules of Cooperation Agreement concluded between JSC "Ditton pievadķēžu rūpnīca” and SIA "Ditton Chain", SIA "Ditton Chain" has announced its intention to initiate investment into development of its production, which will be located in the facilities owned by JSC "Ditton pievadķēžu rūpnīca”. In accordance with the company's public information SIA “Ditton Chain” is planning to invest into development of this production up to 12.346 milj.EUR, from which 4.269 milj.EUR is ERDF funding and 4.4 milj.EUR - the Bank’s funds (loan).

It is expected that around 49.5% of total SIA "Ditton Chain" project costs, or 6.134 milj.EUR will be invested into the property owned by JSC "Ditton pievadķēžu rūpnīca” (buildings, constructions, engineering, communications, area), as well as preparatory and other work. 

In compliance with the terms of Cooperation Agreement, all the improvements and investments, which shall be performed by SIA "Ditton Chain" into the property owned by JSC "Ditton pievadķēžu rūpnīca”, including construction, preparation and other work,  will not be compensated by JSC "Ditton pievadķēžu rūpnīca” and in any case will remain in its possession. 

Moreover, in the frames of the project SIA "Ditton Chain" is planning to purchase modern technological equipment, which JSC "Ditton pievadķēžu rūpnīca” currently does not have and is not able to purchase due to lack of funding. The exploitation of this equipment, which according to the terms of Cooperation Agreement SIA "Ditton Chain" undertook to provide in favour of JSC "Ditton pievadķēžu rūpnīca” too, will allow JSC "Ditton pievadķēžu rūpnīca” to provide an adequate and stable product quality, to produce new kinds of production and to maintain and expand its sales market. 

Taking into account the aforementioned circumstances, the Management Board and the Council of JSC "Ditton pievadķēžu rūpnīca” have decided to issue a guarantee to SIA "Ditton Chain" for an amount of 4.4 mil.EUR for obtaining of target loan for the project. 

The present statement is disclosed after guarantee provisions have come into force.

P.Dorofejevs

Chairman of the Management Board