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Saturday, 27.04.2024, 04:10
Coalition: state investments in Liepajas metalurgs have to be retrieved
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Augusts Brigmanis, chairman of Saeima group of the Union of Greens and Farmers, believes that the state should not make additional investments in KVV Liepajas metalurgs as it needs to be decided first how it could retrieve what has already been invested in the company.
Brigmanis agreed that KVV Liepajas metalurgs workers were in a very difficult situation, and that this could pose problems for Liepaja in the future. The government is continuing work to find a solution for the company, he added.
Gaidis Berzins, co-chairman of the National Alliance, also believes that retrieving past state investments from KVV Liepajas metalurgs is the priority. The National Alliance has not discussed additional investments in the company, and Berzins said such proposals should be treated with caution. He also pointed out that KVV Liepajas metalurgs shareholders had offered the government different scenarios – all economically unfeasible.
Unity Saeima group's deputy chairman Edvards Smiltens also said that it was important for the state to get back taxpayers' money given to the company. It needs to be evaluated whether the company can be brought back to life with the current investors, or perhaps new investors are necessary.
As reported, the government decided earlier this week to task the Privatization Agency with negotiating the restructuring of KVV Liepajas metalurgs metallurgical company and did not rule out a rescheduling of the company's debts.
The government also ordered the Privatization Agency in collaboration with the Treasury to draw up a report by June 1 on progress achieved in the restructuring of KVV Liepajas metalurgs.
KVV Group announced last week it had been forced to take a decision on the conservation of KVV Liepajas metalurgs steel plant because the negative factors hampering the company's operations – the crisis in the global metal industry, the company's debts to secured creditors and the Latvian government's reluctance to provide assistance to the industry – were persisting.
KVV Liepajas metalurgs plans to fire around 300 employees, but will keep 100 employees on duty.
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