Employment, Latvia, Markets and Companies, Textile

The company's management explained to LETA that sales volume has decreased as a result of the global economic crisis. The textile fiber sales of Nexis Fibers dropped in Europe and America alike, therefore the company had to cut staff positions from 133 to 111.

Initially, the company planned to produce approximately 10,000 tons of textile fiber. Current estimates reveal that the actual volume will not exceed 9,200 tons of production. Next year's plans foresee that 7,500 tons of textile fiber will be produced or by 25% less than this year.

Textile fiber production is related to large energy consumption, average Nexis Fibers'  energy consumption is approximately 1.8 million kilowatt hours per month. Thus the new regulations, recently adopted by the Cabinet of Ministers, have created serious problems to the enterprise as now it, the same as all the enterprises with large electric energy consumption, has to purchase electric energy in the market, where its price is around 22% higher that the state regulated tariffs.

Experts prognosticate that electric energy tariffs next year could grow by approximately 25%. This will raise production costs even more, as well as create larger obstacles for successful sales. Therefore in the first and second quarters of 2009, the enterprise will actually have to fight for survival, management foresees.