With the United States threatening to impose tariffs on goods from the European Union, the Latvian digital microwave data transmission equipment maker SAF Tehnika is looking for a contract manufacturer in the US, company CEO Normunds Bergs has told the LETA news agency.
Bergs said that his company has extensive experience with contract manufacturers already, and intensive work is underway to find such a partner in the United States. He declined to forecast how long it will take to find such a company.
SAF Tehnika already has a subsidiary in the United States – SAF North America LLC, but its job is to sell SAF Tehnika products and to provide maintenance services. Bergs has said in the past that his company once distributed products in Canada, but now a distribution centre has also been set up in that country.
“What is happening right now is not normal, so we need to find a contract manufacturer quickly,” Berg says. “Let’s hope for the best.”
During the first quarter of financial year 2024/205, SAF Tehnika earned unaudited and consolidated net revenues of EUR 8.529 million, which was an increase of 58.4% as against the first quarter in 2023/2024, the company disclosed in a statement to the Nasdaq Riga stock exchange.
The statement reports that during the last financial year, EUR 16.6 million in revenues from North America accounted for 61% of the group’s total turnover. This was a decline of 38% in comparison to the previous financial year.
The SAF Tehnika Group includes SAF Tehnika in Latvia, as well as SAF North America LLC and SAF Servies LLC in the United States. Major shareholders include Didzis Liepkalns (17.05%), Koka Zirgs (11.59%), Andrejs Grisans (10.03%), Normunds Bergs (9.74%) and Juris Ziema (8.71%). SAF Tehnika shares are listed on the Main List of Nasdaq Riga.
Source: BNS
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