The main direction of the woodworking company Kronus is the production of wood packaging. Wood pallet components, which are the company's basic product, also require metal parts — hinges. In 2017, the company built its own hinge plant and bought the necessary metal from traders, with about 60% of the metal needed to build hinges – from Russia.
In the spring of this year, after the war in Ukraine began and sanctions were imposed against Russian companies, seeking solutions to supply the metal, Kronus took a decision in favor of developing the direction of metalworking.
Within six months, with €2.2 million in bank funding, the company carried out an ambitious project: it found and rebuilt the premises, purchased production facilities, equipped the plant, and established cooperation with suppliers. In order to ensure the raw materials needed for production, Kronus shall cooperate with suppliers from Europe and Asia.
It is planned to create 25 jobs at the metalworking plant, the company said.
The metal-cutting plant has a capacity of around 50,000 tonnes a year, while the Kronus plant needs around 12,000 tonnes. The remaining output will be offered to other companies.
“[..] The capacity of the new plant is 50,000 tonnes a year, of which around 75% is dedicated to our customers. Thus, as a 100% company in Latvia, Kronus eliminates all potential sanctions risks, which are undoubtedly one of the challenges for Kronus's business as well as other players in the industry," said Igors Ževaks, chairman of the company's board.
Kronus is a woodworking company founded in 1995 specializing in the production of wood packaging – pallet and pallet edges, horticulture products, and wooden garden houses. The company's products are exported to more than 53 countries around the world, with major export markets in Germany, Sweden, and Asian countries. Kronus is a 100% local capital company.