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

Nevertheless, the minister doubts that the company's owners could decide to cease operations at the plant, considering the amount of money invested so far. Investing EUR 35 million and stopping production would be "insane", said Reirs. "Keeping the plant running is the only option," he stressed.

The minister said that even if the plant ceased production completely, the state would lose nothing, as according to the agreement, the state would retrieve all property.

Reirs believes that the situation as it is now is because the company's investors come from a different business environment. Taking into account that the business environment in Latvia is similar to that of the European Union, state representatives and the said investors have a different understanding about the possible state aid, said Reirs.

Seeing the current situation at KVV Liepajas metalurgs, it would be necessary to assess the quality of Liepajas metalurgs insolvency process, this according to Economy Minister Dana Reizniece-Ozola (Greens/Farmers) in an interview with the Latvian Television show "Rita panorama".

She added that if the company's owners fail to fulfil their obligations, the state might look for new investors.

The minister admitted though that so far, the investors have been successfully fulfilling their payment obligations. The next payment is due at the end of the year. Furthermore, the company has mortgaged a property, which gives the state certain guarantee.

Reizniece-Ozola also said that it is important that the company continue operations in order to provide Liepaja residents with jobs.

As reported, the minister is to meet with the board of KVV Liepajas metalurgs today.

The minister previously told LETA that the meeting has been scheduled to hear the company's proposals regarding further state support.