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Latvia's insolvent metallurgy flagship Liepajas Metalurgs prepares for re-launch: media

Xinhua, February 11, 2015 Adjust font size:

KVV Liepajas Metalurgs, the Ukrainian-owned company that has taken over the assets of Latvia's insolvent metallurgy flagship Liepajas Metalurgs, is preparing for the plant's re-launch in test mode next week, local media reported Tuesday.

The company plans to employ 551 people initially. KVV Liepajas Metalurgs spokeswoman Inese Ozolina told Baltic News Service that the company had already renewed labor contracts with 221 former employees of Liepajas Metalurgs. Contracts have also been concluded with 150 new workers, and another 180 employment contracts are in the process of preparation, she said.

"The process will be completed with the re-launch of the rolling mill, so initially the plant will be employing 551 people," Ozolina said.

The rolling mill is expected to start functioning in test mode at the end of next week, the spokeswoman said. Meanwhile, KVV Liepajas Metalurgs has been making arrangements with suppliers of raw materials, seeking markets for its products and making preparations for re-launching the steel melting shop.

In October 2014, Ukraine's KVV Group concluded the deal on the purchase of Latvia's Liepajas Metalurgs, which is based in the south-western Latvian port city of Liepaja. Under the agreement, the Ukrainian company will pay 107 million euros (121 million U.S. dollars) for the Latvian metal working company in several instalments over the next 10years.

Liepajas Metalurgs was declared insolvent on Nov. 12, 2013 after the company ran into financial trouble and had to cease production in spring 2013 due to a shortage of working capital. Endit