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Economy

ECONOMICS

Daugavpils is a city with a well-balanced multi sectorial economy, where foundation of employment and welfare is a small and medium

 business, which is based on the new technologies and produces competitive products.

Daugavpils strategic advantages are:

•             Advantageous geographical position close to the borders of three countries;

•          Developed infrastructure;

•          Favorable business environment;

•          Low costs of living;

•          Educational institutions concentration;

•          Multinational environment.

Daugavpils is the second largest city in Latvia, important industrial center of Latgale. The city is advantageously situated close to the borders of three countries – 25 km to Lithuania, 35 km to Belarus and 120 km to Russia. Daugavpils city is strategically intersected by 5 railway lines and important motorways. Due to these factors the city has been developing as essential center of industry, education, culture, transportation, logistic, commerce and services.

 

Employment by Major Industry Sector, %

(Data of Development Department of Daugavpils City Council)

 

 

Historically Daugavpils has been developing as industrial city that determines its economic development nowadays too.  In Daugavpils the fundamental sectors of industrial production are metal processing, locomotive and railway rolling stock repair as well as production of food and beverages.

 

Industrial Structure in Daugavpils city, 2016 %

(Data of Development Department of Daugavpils City Council)

 

 

According to the data available to Daugavpils City Council the major production companies produced products amount of 183. 3 million EUR and realized production amount of 198.0 million EUR in 2016.

Compared with last year, the amount of produced industrial production decreased by 6.5 million EUR or by 3.5 %, but the amount of realized industrial production increased by 1 million EUR or by 0.5%. Decrease of produced amount is related both with worse international economic situation, especially in Eastern market, and with reduction of internal market.

Industrial volumes in Daugavpils, million euro

(Data of Development Department of Daugavpils City Council)

 

 

Compared with 2015, the amount of produced production increased in manufacturing of following - chemical fibers, concrete products, electrical cables and compounds and plasticware.

The largest Daugavpils commercial companies export its products to more than 23 countries, not only to EU countries but also to the United States, South America, India, China and Mexico.

Enterprise

Sector

SIA “Axon Cable”

manufacturing of high quality cable assemblies for medical, military and aerospace industry

SIA “Intergaz”

autonomous gas supply system design and installation for private houses and industrial facilities, as well as deals with liquefied gas wholesale and retail (gas cylinder delivery, car gas, gas equipment)

SIA “Nexis Fibers”

manufacturing of high-strength polyamide technical yarns

SIA “Zieglera mašīnbūve”

manufacturing of agricultural machinery components, the rape lateral dividers, wires and cables for automotive industry

AS “Daugavpils Lokomotīvju remonta rūpnīca”

repair and modernization of mainline locomotives, shunters, DMU and EMU trains; repair and modernization of passenger carriages; repair of equipment: wheelsets, diesel engines, diesel locomotive and electric train aggregates; spare parts for rolling stock

SIA “Regula Baltija”

production of optoelectronic equipment and systems for documents authenticity control and automatic reading

SIA “Belmast”

production of communication towers, lighting towers, observation towers, universal communication masts, building constructions, engineering products, constructions of electric power lines.

SIA “East Metal”

production of subsupplier steel parts – black and surface-treated

 

According to information from data base Lursoft, 260 new companies were registered in Daugavpils in 2016, which is 44 or 17% more than last year. 329 companies were eliminated.

Overall there were 4749 economically active statistical units at the end of 2016. 

Daugavpils Industrial Zones

 

A large amount of industrial zones, manufacturing territories and unutilized premises are available to potential investors in Daugavpils.

5 industrial zones and manufacturing territories are available for establishment of new industrial enterprises.

1. Northern industrial zone. Its part between Višķu, Mendeļejeva and Loģistikas streets consists of 113 ha of developed area (about 50% of buildings are not used) and 27 ha of undeveloped area. In 2014-2015 part of this territory was reconstructed, 4,2 million EUR were invested in improvement of infrastructure. Water main, sewerage, road surface and outdoor lighting were renewed. Electrical cables were partially replaced. There are access roads and railway. Medium-pressure gas lines, as well as high-pressure gas lines are available. In Northen industrial zone there is an opportunity to locate enterprises which require high energy consumption, because the territory has electric power, as well as an adjacent third district heating station. Business park “NP properties” works in the territory. In 2017 2.stage of reconstruction of Northern industrial zone between streets Višķu, Spaļu and Smilškalana will start. “Ditton grupas” Business Park operates in the area, it offers industrial premises for rent. There is a fine connection with railway and main roads of the city.  Electricity, gas, water, sewerage are available. Undeveloped are is up to 9 ha.

2. Warehouse zone fortress - 53 ha, almost 50% of the territory is available for warehouses or enterprises, which need large territory, small amount of employees and small amount of energy consumption. In 2016 new sewing enterprise SIA “East Ware” was opened here. Odu and Vaļņu streets reconstruction is planned here in 2017-2019 to improve public infrastructure.

3. Industrial territory of Valka street is 14 ha, 32% are not used, however it is located close to the city center. Premises for rent and developed infrastructure (except railway) are available. Objects of social importance are located there, such as hotel, sports and leisure complex. Territory is available for premises with low energy consumption and small amount of emissions.

4. Čerepova industrial zone is located between Stiklu, Dunduru and Rupniecibas streets. It is the second largest industrial zone in the city – 88 ha. Today there are a lot of manufacturing enterprises, only 27 % (located mostly on Dunduru street and Fabrikas street) of the territory is available. In the territory of Čerepova industrial zone there are several railway lines, it is connected to highways. In 2016 biggest private investment projects were gathered here: SIA “Baltic Pellets Energy” construction, SIA “East Metal“, SIA “Daugavpils dzelzsbetons” reconstruction. Public infrastructure will be improved within the frameworks of ERAF project “Development of public infrastructure of Daugavpils city Čerepova industrial zone I and II stage”.

 5Gajoka industrial zone – it’s territory is only 6,2 ha, but it is located close to the city center and highways. Gajoks is not only an industrial area, since, along with the production areas, there is also a large array of residential buildings (mostly low-rise buildings). Mainly food production factories are located here. Opening of new manufacturing objects here should be in accordance with renovation of infrastructure and planned activities for improvement of degraded areas on the right bank of the river Daugava. The balance between industrial and residential buildings should be maintained.

6. Križi industrial area – 19 ha. It is planned to set up a new food business area here. The area is located next to the A6 highway, the railway line is nearby as well. Reconstruction of public infrastructure and brownfield recovery is planned here during 2017 – 2019.

 

 

 

Since 2014 municipality implements grant program “Impulss” to facilitate formation and development of new enterprises in the city. The amount of grant per enterprise is up to 7 000 EUR. 81 business ideas were evaluated and 27 projects were supported within the frameworks of this program.

 

Every year Daugavpils city municipality designs Daugavpils investment opportunities and production enterprises catalogue, where data about estate properties available for investments, data about enterprises with largest territories, their address and cadastral number can be found.

 

 

 

 

 

 

 

 

Latgale Special Economic Zone (LSEZ) was established in 2017, it comprises 2500 ha of Daugavpils manufacturing territories.  Daugavpils industrial enterprises will be able to apply for the discounts on direct taxes. In 2017 municipality will continue the preparation and development of commenced projects. The aim of these projects is to increase the amount of private investments in the territory of Daugavpils city. More information http://www.latgale.lv/lv/lsez