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In Latvia, the production of steel has decreased to a minimum

In Latvia, the production of steel has decreased to a minimum

For the metal mining and engineering industry of Latvia this year, most held neutral. During this time was the negative and positive aspects. On the development of the industry was affected by the geopolitics, and the adoption of new laws. This view was expressed by Maris Balodis — OOO AV Metal. But this opinion was shared by other Latvian businessmen.

The representative of the Association of Metalworking and engineering Andris Sekacis, also gave his assessment of the outgoing year: «Latvia To 2016 continued the observed trend. Some sub-sectors even more procnias, while others have lost their share».

According to statistics, the overall figures for the ten months of this year showed a slight decline. However, the data for each sector separately show a small rise, with the exception of metallogenica. For the last year has shown a significant decline. Today the production of metals, and the country reached its minimum.

At the same time, the analysis of the production said about the positive trends in the production of finished steel products. The auto industry was less successful. Some auto enterprises in Latvia have experienced a number of difficulties this year. Some had problems with the software of production orders. Others were not able to create a complete turnover of production. In other industries there were no significant changes. They functioned at the level of the previous year.

In metalloproizvoditeli, the production of finished metal products have become the industry leader. Most likely, a major role was played by East Metal is the leader of manufacturing metal products in Latvia. The company is a subsidiary of a Danish Corporation.

In addition, in this industry there is a large influx of foreign investment. Therefore, metalloproizvoditeli shows rapid growth.

With regard to steel production, probably next year there would be a decrease. It became known that Severstal Distribution is one of the industry leaders — intends to curtail production in Latvia. The company said that the decision was influenced by an increase in tax rates. Andrey Alekseev, the representative of Severstal Distribution said: «the Latvian government does not want to be a partner of the domestic business. Due to the increase in taxes, the cost of electricity production becomes unprofitable».

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