Latvian company Liepajas papirs («Liepaja Paper") on August 30 announced the creation in Gomel Belarusian-Latvian joint venture for the production of printed products, which will start work next year.
As the Business Website & Baltic, Latvian company plans to carry in Belarus 6 old printing equipment, train staff, and in the first half of next year to begin producing label products worth 70,000 euros a month. While a paltry sum. His decision to guide the Latvian company explains cheaper labor and lower production costs.
"Neighboring republic is often referred to as a police state, but it is a stable country with clear rules of the game, and most importantly — production costs are lower," — that explains his motives chairman Liepajas papirs Janis Vilnitsis. On He said, in Belarus will produce cheaper products, the production of which is not economically viable in the Latvia for further sales in the markets of Russia, Belarus and Kazakhstan.
Latvian company urgently needs to release its production facilities for the modernization of production — the supply of new equipment for the production of labels worth one million euros. Products produced on the new equipment will be sold in the Latvia and other EU countries, while the upgrade costs will be partially met through the exploitation of the old equipment to the joint venture in Gomel, which is not only cheap labor, but still cheap and electricity.