Industry development in Baltics

[Gatis]

As there is quite large scepticism about latest economical developments in Baltics, especially in Latvia, we need to cheer up at least ourselves if not others:
- Our industries in this time are not dead, quite the opposite - they finally are gaining some ground under the feet. Why only now? Simple -

1. Too long farewell to Soviet industries. Soviet Union regarding the market was an enclosed ghetto - no competition, low quality, waste of resources, low use of modern technologies. With an partial exception of army technologies, which also were not a jevel. As the international market opened and free movement of goods started, Soviet time industries has not much hope to survive. Only the simplest ones after heavy investment could continue working. Instead of this there has been put too much energy to keep at life things which had to die and free up a place for something else.

2. In independence times in Latvia there were used "mainstream" quick profiteering schemes - privatisation of Soviet time properties, forest felling, realty business and some more. Most active business people have been busy with these schemes, which gave large profits in short time without much investment. Now each of these bubbles has bursted and in meanwhile there has been acquired good practical knowledge about international economical processes.

Salaries also have grown - our countries can't be used by cheap production facilities, f.e. simple textile or machine building beltlines. Now we got only one way ahead for us - original research and high value added products, necessary for modern post-industrial world. As we don't have many people and many natural resources, our countries will never have lots of large industries

At one rather heated discussion some time ago I said that every week there is opened one new factory in Latvia. I have to correct this one - every week there is opened either new factory or extension to existing factories.

This thread will contain news regarding these developments in industry. Please add the place, where investment is happening. Add industries, not transport and logistics.

[Gatis]

OK, thread appeared finally.

1. 28th July. Location - Ogresgals, village 35 km south-east from Riga. Ended public dicussions on the new plant for production of intravenous liquids, public in general has been supportive. Latvian company "Eurotex" plans to invest 5 mio EUR in this plant. Construction to be started in spring next year. 40 employees. Target market - Scandinavia, Russia, USA.

2. 28th July. Location, Ventspils, Western Latvia. Production of biodiesel in the brand new factory "Bio Venta" is increasing and in September the factory will reach maximum output. There is planned that in 2009 the turnover of the factory will reach 150 mio EUR. Total investment in the new factory was 85 mio EUR, it has to repay in 10 years time. Factory is producing the following items: biodiesel, rapeseed oil, kalium mineral fertilisers, pharmaceutical glycerin. Target market - Scandinavia and Poland. Rapeseed is purchased in Latvia, Kazakhstan, Ukraine.

3. 28. July. Location - Cesis, 90 km northeast from Riga. Today there has been completed extension of Cesis brewery - the largest beer can filling facility in Baltics. Investment - 10 mio EUR.
Btw. is someone still drinking beer from tins?

[Gatis]

Some news from the last week, starting from 21st July:

4. 24.July. Location - Riga, former "VEF" factories. Local producer of aluminium alloys "Dīlers" announces that their new factory (construction started in May 2008, to be completed by the end of this year) will produce high quality aluminium alloys. Investment - 5 mio EUR. Target market - car building factories in Germany, Great Britain, investigated possibilities in Czech Republic and France.

5. 27th July. Location - Tukums, 60 km west from Riga. Completed the "0" cycle of the largest and most modern industrial facility for production of industrial boilers in Baltics. Investor - local "Komforts". The new factory will be completed in 2009. There will be employed 100 people. Investment 5 mio EUR. Target markets - Latvia, Russia, Sweden, Finland, Estonia, Lithuania.

6. 25 July. Location - Ikskile, 20 km south-east from Riga. French company "Saint-Gobain" still considers to construct factory of "Isover" insulation materials. After initial Environment Impact assessment and initial public hearings the project received fierce resistance from local people and "Saint-Gobain" considered to move to other countries instead.
Now there has been decided to start full scale Environment Impact Assessment as well as detailed planning. In Ikskile town council will support detailed plan, project will continue.
Planned investment in the new factory - 80 mio EUR. Nearly all production planned to be exported.

Several factory projects have been killed during public hearing procedures lately - f.e. 1 billion investment in pulp factory or >100 mio EUR investment in iron alloy factory in Jurmala. I consider this to be positive - investors are learning that here they can't come here with low quality polluting industries.

[Micrav]

Good thread! As soon as I can release other news, I will do too!!!

[Fifigi]

Good thread, I do not know where to get all those good news because all media is polluting the environment of information with bad news only.

[RipleyLV]

Construction of the easy load cars plant in Jelgava was started in 2005 and should be finished in the end of this year.

Latvian made AS "AMO plant" in which the Moscow government, AS "Ferrus" and Jelgavas self-government as a shareholder created production of the easy load cars development.

In the new production foreseen recruit the car Russian and European market, according to the EURO-4 standard. The project planned to inlay 30 millions euro (approximately 21 million of lats).

The first load car in Jelgava can become in 2009, but in the future each year the factory will produce 1500 cars middling, in a production occupying 200 workers.

[Fifigi]

Originally Posted by RipleyLV

Construction of the easy load cars plant in Jelgava was started in 2005 and should be finished in the end of this year.

Latvian made AS "AMO plant" in which the Moscow government, AS "Ferrus" and Jelgavas self-government as a shareholder created production of the easy load cars development.

In the new production foreseen recruit the car Russian and European market, according to the EURO-4 standard. The project planned to inlay 30 millions euro (approximately 21 million of lats).

The first load car in Jelgava can become in 2009, but in the future each year the factory will produce 1500 cars middling, in a production occupying 200 workers.

nice one

[Index_LT]

Some news from small towns of Lithuania. There's new industrial area (ala FEZ, don't know if there are any tax reductions) being developed in Ramygala ( http://en.wikipedia.org/wiki/Ramygala ). Now they are building infrastructure. Will be waiting for news about investors.

[Gatis]

It's not easy to find this information at all.

It is considered hip and cool to focus the attention ONLY on bad things, and blow them up possibly large until there is no place for anything good left. That would be OK if that would bring positive consequences - f.e. if all this would be oriented towards the search of solution. But no... just chaotic search of the negatives and after "success" - masohistic enjoyment of it.

Result? Even if our country belongs to fastest developing countries of the world (without natural resources, pollution, slavery etc. - just honest development), even if we gained independence and freedom and now can shape our lives as we want - out of 97 countries Latvia is 87th unhappiest (2007), rather close to continuously war-torn Iraq (No. 92) where people really have a right to be unhappy. Below somewhat less successful Rwanda, Burkina Faso, below loads of other countries, where life is a huge lot more complicated than in Latvia.

If frankly - I love this country but somehow not that much - it's society, which perfectly demotivates anyone who strives for positive things. Let's see - may be now, with this crisis, when there will be intense search of real values, things will start going to better side. Meanwhile I will be naive and will focus on positive news

[Gatis]

7. 29th July. Location - Western part of Jurmala City, Sloka. Tomorrow to be opened new pumpcrete (liquid concrete) factory "Baltijas Betonmix". Investment - 2 mio EUR. Small factory - but one can't have large ones every day

[RipleyLV]

^ That's nothing in comparison with the construction of new cement factory "Cemex" in Brocēni.

[Gatis]

I am just reporting the news. At some moment there will come also news about the new cement factory
Saw the new "Broceni" factory last Saturday, was photographing around it. Impressive - it looks like it's height corresponds to some 25 floors high building.

[RipleyLV]

I was there last monday . Yes, it will look very high. I liked those two hangars (very big) and also those 3 mexicans who where responsible for building them.

[Micrav]

Originally Posted by RipleyLV

I was there last monday . Yes, it will look very high. I liked those two hangars (very big) and also those 3 mexicans who where responsible for building them.

This was an amazing news for me a while ago when I heard that mexicans had investments here. Why not? but I recommand them to come during summer time, it is much warmer for them then in winter time

[Gatis]

8. 31. July. Location - Riga district, Ropazi municipality, Jansili. Today in testing regime started production in the new book printing house owned by "Preses nams". This replaces the obsolete printing house in Preses nams next to "Saules akmens". Total investment in the new printing house - 19,2 mio EUR. This will allow to print up to 700 000 books in a month. The first order - two books of William Shakespeare ordered from Russia, with golden foil and frosted lamination.

Picture taken some time ago:


There is under construction (stopped for a while) another printing house of newspapers and magazines by "Preses nams" - this one will be located in Riga airport and with a help of airplanes they will do everything best to beat other printing houses in the region.

9. 31. July. Location - Jurmala City, Brazciems. Company "Nelsens" has announced that they will construct a waste processing factory here, planned investment 3 mio EUR. Here will be constructed waste sorting facilities as well as composting unit which will produce organic compost and biogas which on the place will be turned into electricity. To be completed by 31st December 2009.
Initiative for this enterprise comes from Jurmala City council, which announced an open tender on this facility. "Nelsens" came up with most environmentally friendly and most efficient solutions.

[Micrav]

In these hard times for Latvia, I keep on loving this country. Go Latvians go!!!

[ch1le]

Originally Posted by Micrav

In these hard times for Latvia, I keep on loving this country. Go Latvians go!!!

nice that an expat loves the country more then some of its locals seem to do (no im not talking about russialatvians!)

[Nomels]

Originally Posted by ch1le

nice that an expat loves the country more then some of its locals seem to do (no im not talking about russialatvians!)

I love it bitterly. Its easier to love when you have not been hurt in relationship... yet

I think it is love-hate relationship anyway.

How about Estonians?

[Gatis]

10. 4th August. Location - Rezekne and Jelgava, potentially other towns. Company "Lattelecom Technologies" and business software producer "SAP" AG announce that they are developing large project in Latvia - factory of programming.

This factory will not produce tangible items - their outcome will be computer software. But the works will be organised according to common production cycle where as a basis will serve several Latvian universities. The first active universities which will become parts of this factory, will be the universities in Rezekne and Jelgava, which have specifically trained teams. The first task - production of software which allows migration from SAP R/3 enterprise software to their new platform.
SAP is the largest European software enterprise (4th largest in world), based in Germany.

[Gatis]

11. 4th August, Riga. On-going extension of pharmaceutical factory "Grindeks", to be completed in this autumn. After this extension the factory will be able to produce 1,5 billions of pills and 0,5 billions of capsules per year. Investment - 10,7 mio EUR. This company specialises in production of medicines aiming at cure of heart, coronary system, central nervous system illnesses and cancer. 96% of their production is exported to 40 countries of the world. Target markets - Baltics, Russia, Japan, USA.
http://www.grindeks.lv/?l=3

The new factory:

- - -
(not numbered because not in Latvia) 4th August. Location - Russia, Moscow. Latvian pharmaceutical company "Grindeks" has started production of their original research products - mildronate - in the premises of Russian company "FarmFirma Soteks". Russian company was selected after careful auditing. Mildronate is produced also in Latvia, Lithuania, Estonia and Poland, this is powerful heart illness preparate.