Investments, Latvia, Markets and Companies

Management of the plant, where the staff is being cut by a half, refused to comment.

Vermerk was formed in 1995 on the basis of the Riga electric bulb factory. The enterprise is located in Jaunmilgravis and has been producing light bulbs since the Soviet era, when it was supplying the bulbs for the army and film units.

89.33% of company's shares belong to the German enterprise Paulmann Licht GmbH. The rest of shares are owned by Latvian entrepreneur Janis Zviedris and resident of Germany Johan Manfred Reichmann.

At the present moment Vermerk produces around 400 types of light bulbs that are sold under the Paulmann brand. 90% of the bulbs are exported.

As the newspaper Biznes&Baltija reports, Vermerk is the only light bulb producer in the Baltic states, however the enterprise is having financial difficulties. In 2006 the company's losses amounted to LVL 19,600 at the turnover of LVL 2.11 million. Last year the company's losses reached already LVL 212,200 and the turnover decreased to LVL 2.06 million.

The newspaper has information that there were 300 people employed in the company at the beginning of the year, but on February 18 the company informed the State Employment Agency about its plans to sack 131 employees. Dismissal of another five workers was announced on March 19.

Zviedris refused to comment of the present situation at the enterprise. According to Biznes&Baltija sources, the enterprise is having difficulties because it cannot compete with the cheaper products from China.