SIA Kronospan Riga has completed the acquisition of KS Terminal Ltd, the fourth largest cargo terminal in the Port of Riga.
With this acquisition, SIA Kronospan Riga has become the 100% shareholder of KS Terminal Ltd. This new control will strengthen Kronospan’s operation in Northern Europe and open up new strategic opportunities for the further growth of the port terminal.
At the end of July, the 199m long and 30m wide general cargo vessel Spanaco Adventure arrived at KS Terminal with the aim to deliver the wood-based panels produced at Kronospan Riga to the USA.
The vessel carrying 40,000m3 of particleboard set sail for the ports of Baltimore and Houston. It is planned that Kronospan will commission regular cargo transportation from Riga port to the USA, delivering Kronospan Riga products to the American market.
“The entry of a major global player such as Kronospan into the service providing business of the Port of Riga is undoubtedly a very positive factor,” said Ansis Zeltiņš, the Freeport of Riga CEO.
“For KS Terminal and the port as a whole, it provides a more stable cargo base and a more secure outlook for the future.”
Vivita Vāvere-Ozola, member of the Board of Kronospan Riga and KS Terminal, said that the acquisition of the terminal aims to ensure the export of Kronospan’s products to the USA, UK and Scandinavian countries, to ensure the unloading and delivery of raw materials for the factory, as well as to attract new customers and cargo to the terminal in order to maximise its potential.
In parallel, an investment plan is being developed to secure and modernise the handling of various bulk cargo and other types of timber, providing a high level of service to the terminal’s clients.
KS Terminal is the fourth largest cargo terminal in the Port of Riga in terms of cargo turnover. The largest cargo groups handled are timber, agricultural bulk cargo, chemical bulk cargo and stone rubble. Timber accounts for around one third of the terminal’s total cargo volumes and this cargo group has seen a significant increase in transhipment volumes over the last six months.
Kronospan has been operating in Latvia as SIA Kronospan Riga since 2005, manufacturing wood-based panels at its Bolderaja manufacturing facility.
