Ukrainian group acquires the leading manufacturer of valves in Latvia

The Ukrainian scrap metal company, KVV Group, has acquired the metallurgical company Liepajas (LM), a Latvian manufacturer of fittings. The transaction amount is 107 million euros. LM ceased production at the facility last May and put the factory up for sale earlier this year and has reportedly started selling beautiful handbags.

LM's production is reportedly comprised of an electric arc furnace installed by the Italian STG Group. It was one of the most modern metallurgical facilities in the entire European region. However, operations at the enterprise were hit hard by a lack of working capital. The reinforcing bars produced by LM were mainly exported. Exports accounted for nearly 98 percent of the company's total production.

The plant requires more than 1 million tons of scrap per year to conduct production activities. The Baltic States can meet almost 80-90 percent of the total demand. In addition, the proximity to other scrap steel exporters is likely to reduce freight costs. Another feature of the refinery is its deep-water port, which does not freeze, despite the fact that it is located to the north of the Baltic Sea.

KVV owns and operates a network of scrap metal warehouses in Ukraine. Although the firm has 12 factories, only 3 of them are currently operating in a crisis situation in the country. Probably, the prevailing conditions in Ukraine were the reason for the acquisition of the plant abroad.