Ventspils, Latvia

SIA "Vedze" Sawmills

Active

SIA "Vedze" Sawmills

Borrower:

SIA “Vedze”

Type:

Business growing

Opens:

01 Nov 2019

Extended till:

-

Interest rate:

19.80% per annum

Loan period:

10 months

Funding target:

€ 379 750

Still need:

€ 94 008

Funded:

€ 285 742

Buyback:

5 % fee

Risk level:

Medium

Collateral agent:

Monethera Group OU

Guarantees:

Pledged commercial assets and personal guarantees of the director

Repayment schedule:

Monthly on the 1st day of each month

Monethera is a path maker in the investment market. Regarding this, no one is left in any doubt. We are proving it with our everyday work. Our professional team investigates the market searching for the best investment opportunities for our partners. Now, let us present you with SIA “Vedze”, a Latvian sawn- wood supplier with a long successful history of activity. Since 1995, the company has provided quality logging services including removal and sale of timber and carries out semi-trailer transportation in the Baltic counties (Lithuania, Latvia, Estonia) delivering different types of cargo - wood, cobblestone, metal, various machinery, etc. The specialists of the company played a significant role to establish, implement, monitor, and guarantee that everything is coming together like clockwork. Nowadays, SIA “Vedze” is an outstanding example of successful management and administration. The company buys raw materials (sawn-wood) in Russia, Ukraine, Belarus, Latvia, has a warehouse at its disposal that guarantees uninterrupted supplies of lumber to consumers and partners in the United Kingdom, China, and South Korea by transhipment in Latvian ports. Taking into consideration the fierce competition in the market, the company shows continual growth and ability to adapt to rapid fluctuation in the market of sawn-wood supplies.

Project's target

That’s why, SIA “Vedze” has decided to increase the production of lumber in-house, in order to optimize the price of raw materials. To reach this goal, it’s necessary to conclude additional agreements with forestry enterprises in Western Ukraine on the purchase of standing timber, own logging, and delivery of the received material for processing by sawmills, with the aim of further sales to the final customers in the United Kingdom, China, and South Korea. Also, it requires purchasing of the forestry equipment (harvesters, forwarders, etc.) of the mobile wood processing stations for the production of the finished product in places for harvesting timber. The specialists of the company continuously monitor offer and demand in the lumber market. According to their calculations, and with reference to many studies of the market, the need for wood will grow. This is influenced by a whole list of factors, including accessibility, portability, comparative cheapness of the cost, and environmental friendliness of this type of building material. Nowadays, wood is used for home construction (like flooring, door frames, and windows), fencing and decorating gardens, making utensils (instead of plastic and steel), creating art (it is widely used in statues, sculptures, carvings and making decorative objects), making musical instruments, making toys and sports equipment, producing furniture, shipbuilding, fuel, stationery, etc.

Wood has always been one of the most valuable materials to humankind, and its numerous uses have contributed to the continuous development of human civilization. Since the industrial revolution, forests have been harvested on a large scale for industrial round-wood production, to be used on a variety of applications. Consequently, the rapid expansion of the wood-based industry has played a significant role in the socio-economic development of many countries throughout the world. Wood is used to construct “greenhouses”, that minimize the impact or "environmental footprint" of a building. Wood is a major building material that is renewable and replenishable in a continuous cycle. The production and processing of wood uses much less energy – known as embodied energy – than most other building materials, giving wood products a significantly lower carbon footprint. As a result, wood can be used as a low-emission substitute for materials that require more copious amounts of fossil fuels. If you convert one cubic meter of solid material, such as concrete or brick, for one cubic metre of timber, you will eliminate approximately one tonne (1,000kg) of carbon dioxide from being emitted into the atmosphere. Most wooden buildings are prefabricated offsite, which makes them fast and efficient to build. The 18-story Brock Commons building in Vancouver was built in 9 ½ weeks. Wooden structures can be produced year-round in most climates. Comparative studies of the economics of different wall framing systems indicate that, in terms of direct building expenses, timber frames are consistently the most cost-effective solution. At Monethera, we are firmly convinced that investing in such a technologically well-planned project with a promising future will bring you money and create new opportunities for future investments.

About the company

The main office of SIA “Vedze” is situated in Sabile, Latvia. During its years of activity, since 1995, the company has shown excellent results and established long-term cooperation with many companies in Latvia, other Baltic counties, Russia, Ukraine, Belarus, United Kingdom, China and South Korea. It has established relations with the best suppliers and manufacturers of sawn-wood and laboratories responsible for quality control. It has moved on from using logistics companies; services to having their own trucks, which guarantees timely delivery of the raw material to the final buyer. The company has four cargo saddle trucks with 13.6m. for curtain semi-trailers. Loading and unloading are possible from the rear, the side, and the top. There are saddle tractors that can also be equipped with a timber transport semi-trailer for the transport of logs. SIA “Vedze” provides timber trucks, transportation services (including machinery transportation), and sales to legal entities and individual customers worldwide. The impeccable credentials are imperative in every market, and SIA “Vedze” commands the respect of its clients, partners, and competitors. The company provides constant assistance and is ready to help with every query. The Monethera team is firmly convinced that this company is an ideal example of a prosperous and predictable market player.

Summary / Project description

Industry: manufacturing / logistics.

SIA “Vedze” decided to expand the range of services and move from working through intermediaries to direct supplies of raw materials. To make it work it is necessary to increase the production capacity of sawn-wood to optimize the price of raw materials and reduce dependence on external suppliers. The company plans to cooperate directly with forestry enterprises in Western Ukraine in order to make its own logging and supply received material to its own sawmills. SIA “Vedze” already has a base of regular customers who are waiting for an increase in the volume of the offered raw materials. The company plans to deploy mobile wood processing stations at harvesting sites in order to reduce transportation costs. It also will acquire mobile stations for the production of wood chips and firewood for heating from the waste of its own output, as well as from waste supplied by other manufacturers.



The necessary amount of money to invest in the project is 542,500 EUR. SIA “Vedze” is ready to spend 30% of the funding, which in absolute figures is 162,750 EUR).
The loan period is ten months.
This project guarantees high profitability, short time-limits for the realization, and liquidity.
If you want to diversify your investment portfolio and receive your money back rapidly, we offer you an optimal option.
The current investment opportunity offers you to loan money with 19.8% of the annual interest rate.

The project will be carried out with the following steps:

1

Conclusion of the agreements with forestry enterprises in Western Ukraine on the purchase of standing timber, own logging, and delivery of the received material for processing to sawmills, with the aim of further processing and sale to customers in the United Kingdom, China and South Korea. The second step is the purchase of the forestry equipment (harvesters, forwarders, etc.).

2

Purchase of mobile wood processing stations for the production of the finished product in places of harvesting timber.

3

Purchase of mobile stations for the production of wood chips and firewood from domestic waste, as well as from the waste supplied from other manufacturers.

4

Machinery / technics: SIA “Vedze” is willing to acquire one harvester and one forwarder to guarantee the manufacturing process.

Specifications:

1. Harvester Ponsse ERGO 8W, 2017, operating hours 6,950 m/h, the engine “MV OM 906 LA” EU Stage 3A 205 kW (275 hp), C5 manipulator (10 m), H7 harvester head, Indexator AV14 rotator, tracks, chains included.

2. Forwarder Ponsse Buffalo King 8W, 2017, operating hours 7,060 m/h, engine “MV OM 906 LA”; EU Stage 3A 205 kW (275hp), Ponsse K100M + manipulator (9.5m), cargo area 3315mm / 5 , 8m2, extension of the cargo trolley 1,760mm, rotator GV12S, clamshell grasp HSP35HD, tracks, chains included.

The cost is 523,000 EUR.

The delivery cost is 12,000 EUR.

Preparation and maintenance cost 7,500 EUR.

The total cost is 605,158 EUR.

Advantages:

Mobile processing stations, as well as own equipment for logging will allow independence from suppliers, minimize logistics costs, and quick relocation of production to any place depending on the volume and structure of orders.

Why SIA “Vedze” is looking for funding?

SIA “Vedze” decided to expand the range of offered services and move from cooperation through intermediaries to direct supplies of raw materials to the final customer. To implement this project, it is fundamental to increase the production capacity of sawn-wood, and the company found an option to purchase the equipment for logging on a leasing basis. It will not only help to optimize the cost of raw materials, but also reduce dependence on external suppliers. For the moment, the company is fulfilling previously assumed commitments and to avoid any risk for these existing projects, and they decided to loan 379,750 EUR. SIA “Vedze” can afford to cover 30%. The absolute figure is 181,548 EUR. The interest that should be paid for loan servicing is 62,659 EUR. We, at Monethera, have carefully examined the proposal, and we are convinced that the company is able to fulfill the assumed obligations and guarantee the repayment of the entire loan.

Loan

The funding target is 379,750 EUR for 10 months.

Interest rate: 19,8% annual, secured debt.

Loan period: 10 months.

Repayment schedule: Monthly, on the 1st day of each month.

Loan purpose: Leasing for the purchase of equipment for logging.

Repayment of Principal Loan in full at the end of the loan period.

The future of the project and long term cooperation:

Once the total amount of loan is repaid, SIA “Vedze” is open to discussing further cooperation opportunities.

To invest:

1

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2

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3

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4

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