Estonian flour producer Tartu Veski has acquired the company DD Invest, the owner of 80% of shares of the joint-stock company Dobeles dzirnavnieks, and thus became a co-owner of Latvian biggest flour producer, as Dobeles dzirnavnieks development director Iveta Ozolina informed LETA.
She explained that the merger of the companies will make it possible to not only modernize the production machinery but also further develop technological process and boost competitiveness of the company's products, as well as provide opportunities for bilateral cooperation and staff training. Both companies will benefit from the merger, as well as their customers and consumers in general.
The merger of the two largest flour producers in the Baltic countries is a strategically significant step toward promoting the companies' competitiveness in the European Union market.
Dobeles dzirnavnieks is one of the leading grain processing enterprises in the Baltic states and the largest in Latvia. The company's main fields of activity include processing grain products, production of flour, grits, pearl barley, bran, pet food, as well as wholesale and retail trade, delivery service and storage of grain products.
Net turnover of Dobeles dzirnavnieks in 2007 increased 12% to LVL 25 million, whereas the company's profit totaled LVL 387,000, a 69% growth, compared with 2006.
Grain processing company Tartu Veski of Tartu is Estonia's biggest wheat and rye flour producer. It produces around 240 tons of wheat flour and 150 tons of rye flour per day.
Tartu Veski belongs to the Estonian enterprise Tiigi Keskus, which is also the owner of German company Saalemuhle Alsleben that operates the most modern mills in Europe.
According to an announcement in the government's official newspaper Latvijas Vestnesis by the board of Dobeles Dzirnavnieks, an extraordinary company's shareholders meeting will take place on July 28 in Dobele.