JSC   "Kaija",   a   fish   processing   and  production  factory,  is

investigating  the possibility to build a greenfield factory by the sea

in Kurzeme.

Presently  "Kaija" is developing the business concept for the potential

new  factory,  specifying  the  business  plan,  looking  for  the most

convenient  location,  as  well as formulating the terms and conditions

for  the  potential business partner. Investment of about LVL 4 million

will be required in order to launch the new factory.

The  new  factory,  to  be built in Kurzeme, is expected to manufacture

canned  sprats  and anchovies. The planned monthly output capacity is 3

million cans of sprats and  400,000 cans of anchovies. The produce will

be sold at Eastern, Western and domestic markets.

The  new  factory project is a part of the company strategy to optimize

production  and  cut  costs, via moving the production closer either to

key  markets (like in Daugavpils), or to input suppliers, as it will be

in  Kurzeme  case. The launching and implementation of the project will

largely depend on successful attracting of a business partner.