pdf version RSS Decrease text Increase text

RDP project database

Manufacturing of briquettes

Summary

Thanks to support from the EAFRD, Rufijs Ltd, operating in the woodworking sector, diversified its main business by creating a new manufacturing line for processing wood waste.

Background

The core business of Rūfijs Ltd is woodworking — sawing and planing wood, making and selling furniture parts and firewood. Based on the firewood business, with a long-standing clientele, the company diversified into the production of briquettes.

Objective

The objective of this project was to diversify the source of income and expand its already successful business by creating a line for the processing of wood waste and other organic materials.

Main activities

As part of the project a chip shredder, a briquetting press for wood waste, straw and peat, and a front loader were needed. The steps taken to build the new facilities that allowed starting the briquettes business were: 1. Procurement of equipment 2. Preparation and renovation of the building site 3. Setting aside financial reserves, forecasting price dynamics 4. Selection, recruitment and training of staff 5. Installation and checking of equipment, preparation of the site for commissioning

Results & Benefits

The successful diversification of the business was already a positive outcome from which the company benefited. Moreover, three more full-time and six additional part-time jobs were created and an old building was renovated thanks to the investment.

Lessons learnt

The main lesson learnt was that diversification of the business was as profitable as it was environmentally friendly. In fact, the investment proved that diversification, if well planned, can also expand the business in terms of human resources employed.

Project location and other information

Kurna, Kubulu rural territory, Balvi municipality, LV-4566

Region

Kurzeme

RDP Territory

Latvia

Total project cost (€)

116 137

EAFRD contribution (€)

38 393

National contribution (€)

38 393

Private contribution (€)

39 351

Contact name

Rūfijs Ltd

Telephone

+37 126 386 426

Languages for contact

English, Latvian

At a glance

Country

Latvia

Final beneficiary type

Other

Budget range

€100 000 - €500 000

Start date:

15/05/2010

End Date:

31/03/2011

Theme / Measure:

• Rural Quality of Life & Economic Diversification
• Rural economic diversification
• 312. Support for business creation and development

Keywords:

Agricultural waste, Agri-environment, Biofuel, Business planning, Wood product

Last update

02/03/2012