Rietumu Banka granted a loan of EUR 40 million for construction of plant protein factory

Rietumu Banka has allocated the financing of EUR 40 million to Latvian company ASNS Ingredient, and it is provided for building a pea protein isolate manufacturing plant in Jelgava. The funds will be used for construction of the factory buildings and purchase of the necessary production equipment. With the provided financing, it will be possible to start manufacturing this highly exportable product. The overall investments in the project will reach EUR 114 million.

The new factory will be among the most modern ones producing the pea protein isolate in Europe. This product is a valuable plant protein – an alternative to animal protein, and the global demand for such substitutes is rapidly growing.

On Friday, there was special event held in Jelgava to celebrate the started factory construction. It was attended by representatives of the Ministry of Agriculture, Ministry of Economics, government finance institution ALTUM, Rural Support Service, Investment and Development Agency of Latvia, Jelgava municipal authority, as well as project partners and businessmen.

"The factory will be one of the largest undertakings in the food manufacturing industry in Latvia, serving as a positive example of economy growth based on the use of innovative solutions. ASNS Ingredient will become a notable player in the food product market across the Baltics and Europe. We are glad to have the opportunity of providing support to realization of the local company’s ambitious goals – establishing the manufacture of a globally demanded product. Moreover, this project evidences that environment-friendly solutions can be a promising business niche, and Latvia has all the opportunities for their development,” said the Chairman of the Board of Rietumu Banka Jeļena Buraja.

"To implement innovations successfully and to be competitive in rapidly changing market environment, we needed to launch the project as quickly as possible. What is more, large investment amount is required for starting the production process. We highly appreciate the willingness of Rietumu Banka to study the peculiarities of our project thoroughly and to provide the necessary financing. Without this support, such large-scale project would not be possible," noted the Member of the Board of ASNS Ingredient Edgars Ruža.

The factory construction has been also granted funding of EUR 53 million by state institution ALTUM.

ALTUM Chairman of the Management Board Reinis Bērziņš: “We provided financing for the innovative project of ASNS Ingredient as a part of the state aid to Latvian companies. This project is of great importance for development of Latvian manufacturing industry, also because of creating new jobs and boosting the growth in Jelgava region. Modern production technologies will be applied in manufacturing, making the factory products competitive and demanded abroad, which means the export potential of Latvia will be increasing”.

Currently, works have been started at the construction site in Jelgava: the foundations have been laid, and the construction of buildings will commence in the coming weeks. The finished goods warehouse is planned to be completed in May, whereas the other buildings will be ready by the end of summer. After that, the assembly of production equipment will begin, and it is supposed to be finished in autumn 2026.

The pea protein factory will become a valuable food exporter focusing on the European market, thus increasing the demand for local agricultural products and furthering the formation of new ecosystem in Latvia. New jobs will be created, and several supporting industries will be required.

The factory building area is supposed to be 26 300 square metres, and the total floor area of the buildings will exceed 23 thousand square metres. The design of the factory’s production equipment was developed in cooperation with the German company Endeco. The equipment will be delivered from Europe and the USA.

About ASNS Ingredient

SIA “ASNS Ingredient” was founded in 2020, and it is planned to be one of the largest and most modern pea protein production plants. The company specializes in manufacturing and processing the pea protein isolate and its by-products: starch, soluble fibre, yeast, and protein. The pea protein factory construction is supposed to be completed by the end of 2026, and maximum capacity is expected to be reached in the final months of 2027. SIA “ASNS Ingredient” will export the products all over the world.

About ALTUM

ALTUM is a Latvia state-owned company that ensures access of the enterprises and households to the financial resources by means of support financial instruments – loans, guarantees, investments in venture capital funds – in the areas defined as important and to be supported by the state, thus developing the national economy and enhancing mobilization of the private capital and financial resources. The funding for implementation of state support programmes comprises both EU funds and national public funding as well as funding raised by ALTUM with international institutions and capital markets.