Start page | Economics
Economy
Production enterprises of Daugavpils
Economics
Daugavpils is multicultural, multiethnic and multifunctional city, cross-border center of economic development and services.Daugavpils is the second largest city inLatvia, important industrial center of Latgale at the Eastern border of EU. The city is advantageously situated close to the borders of three countries – 25 km toLithuania, 35 km toBelarus and 120 km toRussia.Daugavpils city is strategically intersected by 5 railway lines and important auto roads. Due to these factors the city has been developing as essential center of industry, education, culture, transportation, logistic, commerce and services.Daugavpils offers a large number of attractive educational choices to young people so the city is being called the Student town.
In ancient timesDaugavpilswas founded along the banks ofDaugavaRiver. The city is rich in picturesque natural resources for recreation and leisure – forests, 12 lakes, 2 man-made water reservoirs as well as landscaped areas – parks and squares.
HistoricallyDaugavpilshas been developing as industrial city that determines its economic development nowadays also. The fundamental sectors of city industrial production are metal processing, locomotive and railway rolling stock repair as well as production of food and beverages.
The city is proud of its cultural and historical heritage: Daugavpils Fortress with recently openedMarkRothkoArtCenter, Church Hill and historical center with first inLatvia Pedestrian Street. Daugavpils Theater,LatgaleZoological Garden,DaugavpilsClayArtCenter,MultifunctionalSportCenter, Daugavpils Ice Hall and Daugavpils Speedway Arena offer to its residents and guests of the city varied opportunities for active rest and pleasant free time.
Daugavpils strategic advantages are:
• Advantageous geographical position close to the borders of three countries;
• Developed infrastructure;
• Favorable business environment;
• Low costs of living;
• Concentration of educational institutions;
• Multinational environment.
Daugavpilsis a city with a well-balanced multi sectorial economy, where foundation of employment and welfare is small and medium business, which is based on new technologies and produces competitive products.
In the year 2012 comparing to 2011 the volume of industrial production in Daugavpils increased by 10% and amounted to 159 495 700 Ls (227 851 000 €). In 2009 the volume of industrial production sorely decreased due to economic slowdown. In 2012 the volume of industrial production increased by 37% comparing to 2009.
The growth of production volumes during the last three years is explained by positive development dynamic of Daugavpils most important industrial branches. Historically city industry has been represented by following branches:
- Metal processing
- Locomotive and railway rolling stock repair
- Production of food and beverages
Metal processing is the largestDaugavpils industrial branch with 27% of total volume of city industrial production.
During the last three years DaugavpilsMetal processing companies marked notable increase of production volumes which already in the year 2011 reached the level assigned before the economic recession. This positive tendency also continued in the year 2012, when the volumes of production amounted to 45 130 400 Ls (64 472 000 €).
Since the year 2008 Daugavpils Locomotive and Railway Rolling Stock Repair sector has been working persistent, producing in average 28 Mil LVL (40 Mil €) annually. Production volumes of this sector increased by 33% in 2012 and amounted to 37 799 500 LVL (53 999 286 €).
In 2012 Food and Beverages Production sector reached the level assigned before the economic recession. The volumes of production amounted to 25 509 800 LVL (36 442 571 €). Employment in this sector increased by 11% during the last year.
During the period 2009-2011 Daugavpils industrial companies invested 20 Mil LVL (28,6 Mil €) to develop its production infrastructure, including 13 Mil LVL (18,6 Mil €) for modernization of manufacturing equipment.
2012 several new businesses on recycling of paper and plastic have been started in Daugavpils, besides new companies on manufacturing of plastic ware, wood-processing and production of garment were opened. 8 Mil LVL (11,4 Mil €) have been invested in upgrading of production equipment during the last year. There are new companies on assembling of electronic equipment and production of charcoal in preparation stage.
Production volumes and number of employees by industrial sector in Daugavpils 2012 (city council data)
|
|
sector |
2012 (thousand LVL) |
Number of employees 2012 |
2011 (thousand LVL) |
Number of employees 2011 |
Changes in production volumes (%) |
Changes in number of employees (%) |
|
1. |
Locomotive and railway rolling stock repair |
37 799,5 |
1 246 |
28 424,8 |
1 152 |
+ 33% |
+8,2% |
|
2. |
Production of food and beverages |
25 509,8 |
1031 |
22 163,2 |
928 |
+ 15,1% |
+11,1% |
|
3. |
Central heating and water supply |
24 782,9 |
545 |
20 631,5 |
547 |
+ 20,1% |
-0,4% |
|
4. |
Metal processing |
45 130,4 |
2 391 |
45 485,7 |
2 358 |
-0,8% |
+1,4% |
|
5. |
Production of electrical cables |
12 854,0 |
396 |
11 878,0 |
321 |
+8,2% |
+23,4% |
|
6. |
Sewing industry |
4 632,0 |
529 |
7 191,9 |
570 |
-35,6% |
-7,2% |
|
7. |
Chemical production |
3 287,0 |
108 |
3 107,0 |
112 |
+5,8% |
-3,6% |
|
8. |
Others |
5 500,0 |
168 |
6 086,8 |
171 |
-9,6% |
-1,8% |
Daugavpils industry is represented by 82 production companies, including 50 export enterprises
Daugavpils largest exporting companies (city council data)
|
|
corporation |
sector |
country of capital holder |
|
|
SIA “Axon Cable” |
Manufacturing of electrical cables and compounds |
France |
|
|
SIA “Nexis Fibers” |
Production of chemical fiber |
Switzerland |
|
|
A/S "Ditton Pievadķēžu rūpnīca“ |
Production of driving chains |
Latvia |
|
|
SIA "Belmast“ |
Manufacturing of communication and lighting towers |
Latvia |
|
|
SIA “Zieglera mašīnbūve” |
Production of parts for agricultural machineries |
Germany |
|
|
A/S “Daugavpilslokomotīvju remonta rūpnīca” |
Locomotive and railway rolling stock repair and production of spare parts |
Estonia |
|
|
SIA “Intergaz”
|
Marketing of compressed and liquefied gas, installation of pipelines, heating and air conditioning |
Latvia |
|
|
SIA “Magistr” |
Production of ropes, cords and nets of various structures |
Latvia |
|
|
SIA “Regula Baltija” |
Production of electronic equipment and systems for documents authenticity control and automatic reading |
Belarus |
In 2011 “Catalogue of Daugavpils Enterprises and Investment possibilities” was created. Building and plots of land are now being offered to potential investors to start new contemporary businesses on theterritory ofDaugavpils city. Currently using ES structural Fond financing Daugavpils City Council is running several projects on modernization of public infrastructure ofDaugavpils industrial zones to make them more attractive for private investments.
Daugavpils industrial zones:
1) Warehouse zone “Cietoksna” –472 608 m2;
2) Northern industrial zone - 1 660 031 m2; including green area of 27 ha;
3) Industrial zone “Cerepova” - 887 182 m2;
4) Industrial territory “Dauer” - 147 759 m2;
5) Industrial zone “Malu street” - 62 827 m2;
6) Railway infrastructure service zone – 478 157 m2;
7) Industrial zone “Western Gajok”– 61 553 m2;
8) Industrial zone “Liginiski” - 89 636 m2.
Daugavpilslargest industrial territory is Northern industrial zone, which includes 38 buildings (1200 employees). Dynamically develops industrial zone “Cerepova” and “Dauer” (1000 employees), as well as warehouse zone “Cietoksna” and industrial territory “Motoru street” (500 employees).
|
New companies in Daugavpils 2009-2012 |
|
|
Corporation |
Description |
|
SIA „Abi Pro” |
Recycling of plastic and packaging materials |
|
SIA „Urban Plast” |
Production of polymer composite materials |
|
SIA „Eco Step Baltic” |
Production of outdoor durable rubber flooring tiles for sport fields and children’s playgrounds |
|
SIA „ Eko Iso” |
Production of eco wool from recycled paper for thermo isolation |
|
SIA „Baltijas moderns” |
Sewing production of uniform and service dress |
|
SIA „Lattex D” |
Sewing production of garments for women, men and children |
|
SIA „Flemur” |
Sewing production of sport and dance ware |
|
Companies in the preparation stage |
|
|
SIA „Alternum” |
Recycling of active sewage-sludge for production of electricity and heat energy |
|
SIA „Hi Tech Energy” |
Recycling of low quality biomass for production of charcoal and electricity |
|
SIA „Altonika” |
Production of electronic equipment |
|
Significant renovations at Daugavpils companies 200-1012 |
|
|
SIA „Axon Cable” |
Started additional production of spare parts for electrical cables and connectors |
|
SIA ”Ditton Chain” |
Opened new contemporary production line for driving chains |
|
AS „Latvijas maiznieks” |
New baking equipment allow to use modern technologies for bread making |
|
AS „Daugavpils Lokomotīvju remonta rūpnīca” |
Opened new automated production line for manufacturing of spare parts |
|
SIA „Mamas D” |
Started new exclusive beer production |
|
SIA „Rital D” |
Production of larger assortment of products |
