"East Metal" Ltd Finishes Installation of New Metal Processing Line for Producing Wind Turbine Components
On 1 August 2011, "East Metal" Ltd. entered into an agreement with the Latvian Investment and Development Agency for the implementation of the project "Installation of New Metal Processing Line for Producing Wind Turbine Components at „East Metal „ Ltd. "
As a result of the project implementation a line of metal milling and surface treatment has been installed at the company structural unit in Daugavpils , which facilitates the production of bulky components for wind turbines. Although initially it was planned to finish the project in autumn 2011, additional orders from the world's largest wind turbine manufacturers were received during the project implementation, so additional investments in increasing the capacity and technical possibilities of the machinery had to be carried out. In agreement with the Latvian Investment and Development Agency a more powerful metal milling machine was acquired, and the increase in the project costs was covered by the company.
Due to the installation of new machinery the company will have the opportunity to produce bulky metal components for the world's leading wind turbine manufacturers, thus increasing the company turnover, volume of exports and number of workers employed in the company. By 2016 within this project it is planned to create 80 new workplaces (at the beginning it was planned to have 40-50 workplaces) at Daugavpils structural unit, as well as increase the company turnover for 7.7 million LVL. The total eligible cost of the project are 731,267.56 LVL, the European Regional Development Fund finances 255,943.64 LVL (35% of the eligible costs).
On the ERDF Project Implementation
On August 1, 2011 SIA East Metal signed a contract with the Latvian Investment and Development Agency regarding the implementation of the project "Installation of Metalworking Line for Manufacturing New Wind Generator Components at SIA East Metal”.
During the implementation of the project it is planned to install a surface treatment line and to purchase a high-capacity CNC milling machine for manufacturing bulky metal components. Still at the beginning of November the installation of the surface treatment line continues. As market demand for manufacturing bulky metal components for wind generators during the project implementation has increased (it is estimated to have a number of additional orders from other manufacturers), the management of the company consider the possibility to replace the envisaged CNC milling machine with a more powerful one, the additional costs will be covered from the company`s assets.
Due to the replacement of the equipment envisaged under the project it will be necessary to extend the overall period for implementation of the project. Currently, the required extension of the project period is being discussed and the explanation to the Latvian Investment and Development Agency is being prepared.