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The government yesterday gave the Finance Ministry the go-ahead to sell Liepajas metalurgs.

Straujuma admitted that Liepajas metalurgs could resume production this November.

''In the sales agreement, the condition that the company must resume production already this year remains. According to our calculations, the state will be able to recover all of the funds it pumped into the company's rescue. The resumption of production is very important for the city of Liepaja, and will help reduce the unemployment level in the port city, which saw a substantial rise when the company halted production. The resumption of production will also be a benefit to the national economy and growth as a whole,'' Finance Minister Andris Vilks (Unity) points out.

As reported, the Ukrainian company KVV Group has won the Liepajas metalurgs tender and the right to acquire the metallurgical plant.

KVV Group intends to invest EUR 30 million into Liepajas metalurgs and resume production already this year.

It is planned that Liepajas metalurgs will manufacture metal products for KVV Group, as well as for export.

Liepajas metalurgs halted production last spring. In July 2013, the State Treasury repaid from the state budget the principal amount of the loan owed to the Italian bank UniCredit by Liepajas metalurgs – EUR 67,465,056 or LVL 47,414,711.