Baltic States – CIS, Latvia, Legislation, Markets and Companies, Metals Market

Lipmans said in an interview with the Latvian Television show "Rita panorama" that KVV Group is evading taxes in Ukraine, has huge debts, and deals only with recycling scrap metal.

The new owner of Liepajas metalurgs initially promised to resume production already in the fall of 2014, then at the beginning of 2015, whereas now the date has been shifted to April. "I am not so sure that this might happen in the near future, as it requires a market and raw materials, while they are struggling to have lower prices for electricity and gas," Lipmans said.

Lipmans added that he has information from Ukraine about KVV Group and that it was surprising that such a company was able to come to Latvia and the city of Liepaja, where NATO ships are docked.

As reported, KVV Liepajas metalurgs steel melting furnaces will begin production on April 20, the company's CEO Igor Kovalenko said.

KVV Liepajas metalurgs rolling mills have been working already since mid-February, with output reaching 15,000 tons so far.

Kovalenko said that after the plant's second rolling mill and steel melting facility are set in motion, the monthly production capacity will reach 45,000 tons, providing 750 people with jobs. The second rolling mill will resume production in April as well, Kovalenko said.