Latvia, Markets and Companies

''Most of the more famous electronics instrument manufacturers have relocated to China, where there is a cheap work force and materials. We are not competitive in Latvia,'' Zudans explained.

Zudans pointed out that around 300 employees will remain at the ''Rebir'' factory in Rezekne (eastern Latvia), who will continue to manufacture specialized instruments, as well as work in the company's retail and technical center.

As reported, the State Employment Agency's Rezekne Branch has received official notification from the machine tools company Rebir that 530 workers will be laid off come August 1.

The company explains in a statement that the reduction in force is necessary because of a rapid increase in production costs, lack of support for export from the government, lack of qualified workers, and the inability (due to government indifference) to keep workers from seeking employment abroad.

Already in March and April, rumors were rampant in Rezekne about massive reduction in force at Rebir but Zudans declined to comment to LETA at the time.

About 1,000 workers were employed at Rebir in April.