Lithuania-based dairy major Vilvi Group is investing €50m ($54.6m) to expand cheese production at its Bauska facility in Latvia. This is the company’s largest investment project in 31 years. The expansion is set to be completed by 2027.
The new capacity will be added at a site previously owned by SIA Baltic Dairy Board, which Vilvi acquired last year. The financing for the project involves a combination of the company’s funds and loans from Citadele Bank. Latvia’s government is also contributing €8.5m to the construction through Altum.
This expansion will create new employment opportunities, although the exact number is not yet determined. In the past year, Vilvi’s revenues declined slightly, but its EBITDA and net profit showed positive growth.
The company’s main export markets are the EU, which accounts for 49% of sales, and Lithuania, which makes up 17% of sales. Vilvi also exports to Asia, the Middle East, and the Americas, comprising 34% of its sales last year.
Vilvi’s product range includes Gouda cheese slices under its namesake label, as well as other cheese variations and dairy products. It also offers yogurts, cream cheese, and whey protein powder.
