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"Bauska processing plant has a capacity of 200 birds per hour, whereas Kekava – 6,000 birds, and the figure will be further increased to 7,000. Furthermore, the Bauska processing plant is obsolete, maintaining the heating temperature is difficult, unlike the recently-renovated Kekava plant. Therefore the company's owners have opted for reorganization, which is perfectly logical in terms of profitability. We will continue to raise chicken and produce feed at Lielzeltini," said Vilcmeiers.

At the same time, he said that 124 out of 400 workers currently employed in Bauska would have to be laid off – but the same number of new workers will be needed at Kekava.

"All these workers have been offered the opportunity to work in Kekava, and receive the same wages as now, but not all accepted the offer, for various individual reasons. Of course, all these workers will be paid compensation," said Vilcmeiers, adding that the company now has more than 100 job vacancies at Kekava, where production will be expanded significantly.

Kekava owners continue to invest in the company to implement modernization projects worth several million euros, he also said.

As reported, Kekava turned over EUR 20.71 million and earned EUR 1.68 million in the first half of 2014, according to information provided by Firmas.lv. In 2013, Kekava increased its turnover by 15% – from EUR 32,924,023 in 2012 to EUR 37,808,197 in 2013. The company also posted a record-high profit in 2013 – EUR 5,216,560 as compared to EUR 717,196 losses in 2012.

Lithuania-based company Linas Agro Group owns 87% of Kekava shares. Linas Agro Group is also the owner of Latvian poultry companies Lielzeltini, Cerova and Broileks.