February, the 11th, 2008
Fortum acquires Jelgavas Kogeneracija heat company in Latvia
Fortum has signed on 7 February 2007 an agreement to acquire 100 % of the shares in Jelgavas Kogeneracija in Latvia. The transaction is subject to the approval of the Latvian Competition Authorities.
The acquired company provides district heating to the city of Jelgava in Latvia. The annual heat sales is 200 gigawatthours (GWh), the net sales EUR 10 million, and number of employees 170. The company's district heating network is 70 kilometres long and heat is produced in natural gas-fuelled heating plants.
Fortum entered the Latvian heat market by acquiring the Riga Airport heat operations in February 2007. The acquisition of Jelgavas Kogeneracija is a natural step in Fortum's growth strategy in Latvia.
"Fortum will invest in further improvement of the competitiveness of the district heating in Jelgava. Jelgavas Kogeneracija is a good platform for us to grow both in heating and in combined heat and power production in Latvia," says Mr. Jaakko Vähä-Piikkiö from Fortum.
For more information about Reval Hotel Neris:
Jaakko Vähä-Piikkiö, Vice President, the Baltic countries, Fortum Heat, tel. +358 50 453 2009
Ginta Gimdina, Managing Director, Fortum Latvia SIA, tel. +371 265 67908
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