A new packaging and board game production facility "Folded Box" was opened

On November 22, the new "Folded Box" packaging and board game production facility was solemnly opened with a technological process unique in the Baltics, as a result of which hard cardboard boxes are manufactured. The company has invested more than 1.7 million euros in the purchase of new equipment, thus increasing its production capacity in order to offer high-quality sustainable packaging to the market and compete with manufacturers in China.

The new "Folded Box" production plant has started work in 2,700 square meter premises in the "Piche" developed business park "Ulmaņa parks II" in Mārupe. In 2023, the company plans to produce more than 2.5 million hard cardboard boxes.

"By the end of this year, 22 new machines will be put into operation in the new "Folded Box" production facility, including such rare technologies as a card cutting line, a card cutting machine and a full set plotter. The newest addition to the entire production system will be a unique paper embossing machine, which we chose to purchase in response to challenges in the availability of raw materials both in Europe and Asia," says the manager of the production facility, Austris Polis, adding that Baltic and Scandinavian customers will be able to reduce geopolitical, logistical, as well as quality risks related to the purchase of packaging.

Board games industry expert Egils Grasmanis has always wanted to produce games in Latvia: "Brain Games SIA" is a family company with 100% Latvian capital, and we both develop games ourselves and also sell games made by others. Game production was until now the only missing stage in our company, so we immediately saw potential in the "Folded Box" production facility and agreed on a new business direction with board games, puzzles and card games. We are very proud that the first board game created in the new production facility is the " War of Latvian Independence ", which allows everyone to get to know the history of our freedom struggles in an educational way."

During the opening, the chairman of the board of "Expansion Capital AIFP" Zigmārs Reklaitis also addressed the guests , stating that: " "Folded Box" is an important addition to the investment portfolio of "Expansion Capital" with a wide and experienced team in both domestic and export markets. We are convinced by the vision of "Folded Box" as a currently unique production base in the region, which combines efficiency with flexibility and, at the same time, the opportunity to successfully compete in several business segments, which will help ensure the company's stability in various market situations."

The possibilities of "Folded Box" to grow on a global scale were emphasized by Ieva Jansone-Buka, member of the board of JSC "Development financial institution ALTUM": "The investment of the ALTUM co-financed fund in SIA "Folded" is an excellent proof of how venture capital investments can support ambitious Latvian teams that are able to see niche opportunities of international markets, to create a product with high added value and to do it with sustainable solutions. We highly appreciate the INEC1 foundation's investment, which will give the local company the opportunity to grow on a global scale."

"The Folded Box company is a clear example of how to use the new situation when global supply chains are changing. Currently, many companies in Europe and North America refuse suppliers in Asia, it is a business niche in which Latvian companies can also operate successfully. We are pleased that "Folded Box" is one of the clients of LIAA's business incubators, for which we have approved support in the amount of 100 thousand euros," says Kaspars Rožkalns, director of the Latvian Investment and Development Agency.

Arnis Škapars, a member of the board of SEB banka, praised "Folded Box" as an innovative company that has been able to see the growth potential and integrate into the market development trends, producing products with increasing demand worldwide. "Such companies are always binding for us as a financial partner, so we are pleased to be there, supporting economically sound investments," says Arnis Škapars.

Normunds Bergs, chairman of the board of "SAF tehnika" also appreciates the opportunity to produce sustainable product packaging in Latvia: "We also previously produced packaging in China, but then problems started - the pandemic and slowed deliveries, shortage of containers, rising fuel prices. As a result, if you add delivery times, rising transport prices, and the money that has to be frozen to keep the packaging in the warehouse in the required amount, it shows that cheap manufacturing in China turns out to be a myth. This region also remains more unstable politically. Therefore, "Folded Box" is one of the first signals that even in such a seemingly simple industry as packaging production there is a place for production in Latvia."

Until now, "Folded Box" has mainly produced high added value hard cardboard packaging for Latvian manufacturers who export their products. In 2021, the company worked with a turnover of 504 thousand euros and a profit of 18 thousand euros. Since 2021, "Folded Box" has been admitted to the LIAA Jūrmala business incubator and has received the support of this program.

The driving force behind the Folded Box business is printing industry experts Armīns Urbergs and Austris Polis, board games expert Egils Grasmanis, as well as Roberts Stuģis, an expert in the field of financing and structuring.

INEC1 is an alternative investment fund co-financed from the funds of the European Union, and its largest investor with a 75% stake is the state-owned JSC "Development Financial Institution ALTUM".