EU – Baltic States, Investments, Latvia, Legislation, Markets and Companies, Metals Market

Every metal manufacturer can freely sell its products in Latvia. Liepajas metalurgs, however, had to certify its production in accordance with the standards of each European country to sell it Europe, explains Zaharjins.

Zaharjins believes that it is necessary to make changes to Latvia's construction regulations, stipulating that only locally certified rebars may be used in construction in Latvia.

He also urges to free the industry from additional electricity expenses – LVL 10 million, caused by the mandatory procurement component, and to set restrictions on scrap metal export outside the European Union.

Only after completing these tasks it will be possible to attract an investor for Liepajas metalurgs, believes Zaharjins.

As reported, the faltering metallurgical giant Liepajas metalurgs has halted production. In July, the State Treasury repaid from the state budget the principal amount of the loan owed to the Italian bank UniCredit by Liepajas metalurgs – EUR 67,465,056 or LVL 47,414,711.

The company will be undergoing examination by a court of law as its legal protection process administrator Haralds Velmers filed a petition for insolvency last week.

The Liepaja court will have two weeks time to review the matter, and if Liepajas metalurgs is designated insolvent, it will be placed under Velmers' 100 percent supervision, eventually leading to a deed of sale (in six months following the court's ruling).