Sadales tīkls concludes the first wooden poles export deal

Sadales tīkls AS has implemented an export pilot project for the supply of the company’s manufactured wooden poles. The first deal has been concluded with Elektrilevi OÜ – Estonian electricity distribution system operator.

A large part of Sadales tīkls electricity network consists of surface infrastructure with wooden poles as an integral component thereof. The company manufactures the wooden poles required for the electricity network at its own wooden poles production facility, and foreign partners have also expressed interest in this product. The poles are an internationally certified product, made from Latvian pine. An essential prerequisite for product quality is the ability to trace quality at every stage of production.

"This is an excellent example of how a state-owned company can use its knowledge and resources to create new export opportunities. The first export deal of Sadales tīkls with Estonian partners demonstrates the competitiveness and quality of Latvian companies abroad as well. Such initiatives strengthen our regional cooperation and help to build a sustainable, innovation-based energy sector,” emphasises the Minister for Economics Viktors Valainis.

"The main task of Sadales tīkls is to ensure continuous and secure electricity supply in Latvia. At the same time, the company has always sought the ways to develop, streamline processes and diversify its revenue base – this helps to create a more sustainable financial model for the company in the long term. We are pleased to take the first step towards export and that our first cooperation partner is our Estonian colleagues! We have worked closely with Elektrilevi on a daily basis, have recently signed a memorandum of understanding on cooperation in the event of widespread damage and will now further strengthen our cooperation in the field of export. This is a pilot project for us, which will serve as a basis for further export development,” says the CEO of Sadales tīkls Sandis Jansons.

“In order the ensure long-term resilience of the grid and also both the quality and cost-efficiency of the service, it is crucial to have firm supply chains at place and also to ensure the regional capabilities for producing strategic grid components,” says Rudolf Penu, member of the management board of Elektrilevi. “Over the recent years, Elektrilevi has put increased efforts into diversifying our procurement portfolio with an extra focus on unlocking the full potential of the regional capabilities. The agreement with Sadales tīkls therefore serves as an excellent example.”

Sadales tīkls wooden poles production capacity is sufficient to fully meet Latvian needs while also developing export. Export is being developed as an additional growth direction, without competing with the provision of basic needs. In the Latvian market, Sadales tīkls produces wooden poles only for its own needs (for the maintenance of the electricity network).

Other companies in Europe have already expressed interest in purchasing Sadales tīkls wooden poles. Export revenues are planned to be invested in the company’s development – both in increasing the efficiency of wooden poles production and in the development of new products and services. Additional income strengthens the company’s financial base and, in the long term, helps to ensure ever more stable maintenance of the electricity supply system.