A Latvian company to launch production in Russia

Perfume Vending (SIA Riemon), a Latvian manufacturer of perfume sprinkling machines, has raised EUR 500,000 to finance a new production facility in Russia.

A Latvian company to launch production in Russia

Perfume Vending (SIA Riemon), a Latvian manufacturer of perfume sprinkling machines, has raised EUR 500,000 to finance a new production facility in Russia.

"First and foremost we thought about Europe and our network but great demand has emerged in Russia. From time to time we meet customers who want to order 30 devices whose price exceeds EUR 60,000. Therefore, we started focusing on this market and decided to open a production unit there," Evgueny Roschin, a member of SIA Riemon's Management Board, said. Producing and selling on the spot, i.e. in Russia, is more profitable from a cost perspective, because there is no need to pay customs duties. Relations between Russia and Europe and FX fluctuations are another important aspect here.

The new enterprise called LLC Perfume Vending is co-owned by SIA Riemon and investors. The Latvian company owns a 50% share in the subsidiary with other investors being citizens of Russia. A contract has been executed with new business partners for 400 machines and they will create a network in Russia by themselves.