The  costs  of  a  joint  greenfield  project  by  JSC  "Kaija",  Pskov

administration  and  Russian  businesses  in Pskov region may amount to

about USD 3 million. The pilot project envisages building a new factory

employing  about  300  people.  The  core  business  is  expected to be

manufacturing  of  freshwater fish products. A more exact cost estimate

of  the  project  will  only  be  possible  after finalising the market

research  and  drafting a business plan. Some introductory fund raising

negotiations,   including   with   Russian  banks,  have  already  been

initiated.

The  Pskov  project  fits  within  "Kaija"  plans  to launch production

outside  Latvia  and Riga. A company in Daugavpils has already been set

up.  The  possibility to build a fish-processing unit in Kaliningrad is

explored.  Meanwhile,  the Moscow vicinity project has been temporarily

suspended due to legal formalities.

Presently, about 31% of "Kaija" export markets are in Russia, amounting

to sales revenues LVL 2.353 in the first 9 months of 2001.