Continued success in Baltic states for Opcon subsidiary, SRE

Svensk Rökgasenergi, SRE, today signed a letter of intent with a municipality in Latvia regarding the delivery of a flue gas condensation plant. The deal is estimated to be worth around SEK 5 million and will be in the form of leasing. Delivery is planned for the end of 2007.

The plant will be the fifth that SRE has delivered to the highly interesting market in the Baltic States, where more than half of all heating is in the form of district heating. In Estonia, Latvia and Lithuania over 200 bio-fuel boilers have been installed that do not have flue gas condensation plants and which are therefore potential customers for SRE.

“We have a strong presence on the Baltic market through our local partners. This gives us control over current projects and future ones. Next year we expect the Baltic States alone to generate sales of SRE equipment worth around SEK 20-30 million,” says Opcon’s CEO, Rolf Hasselström.

SRE’s flue gas condensers clean flue gases and boost output from a biofuel boiler by 25-30 per cent.

SRE has previously financed a similar leasing arrangement in Latvia through Svensk Rökgasenergi Finance, a company that has operated on a limited scale. In order to enhance flexibility towards customers, this company is now changing its name to Opcon Financial Services and, by teaming up with a new bank, it has increased its opportunities to manage significantly larger deals. This will enable companies with a weaker capital base to order SRE’s systems and Opcon Powerbox.

“This is an important part of our focus on Eastern Europe because alternative financial solutions can be required to clinch a deal. We are continuing to examine new markets in Eastern Europe. For example we are participating in the Swedish business delegation that is visiting Austria. The Austrian experience of doing business with their neighbours to the east is of special interest to us,” adds Rolf Hasselström.


For further information, please contact:
Niklas Johansson, Communications Officer, Opcon AB, tel+ 46 70 592 54 53


Opcon AB, P O Box 30, SE-662 21 Åmål, Sweden
Tel. +46 532 613 00, fax +46 532 120 19
e-mail: info@opcon.se
www.opcon.se