bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 23.07.2018 | Name days: Magda, Magone, Mērija
LatviaLatvia

Opinion: working export should be prepared for any fluctuations on the global market

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIf an industry is engaged in export, it should expect and be prepared for any and all fluctuations on the global market, says President of Association of Mechanical Engineering and Metalworking Industries of Latvia Vilnis Rantiņš.

He adds that the metallurgy industry could have grown 4-5% this year if not for Liepājas metalurgs or the possible reduction potentially caused by the geopolitical situation.

Rantiņš notes that the impact on the metallurgy markets caused by the lengthy Russian-Ukrainian conflict may cause a 10% reduction in total production volumes.

‘The situation is what it is; there’s nowhere to go. It is clear there will not be a positive impact. Estimates suggest there may be a 10% decline for total production volumes. The Russian-Ukrainian conflict may even impact the number of orders from Germany, because everything is tied together on the global market. Sanctions introduced against Russia by the West will also impact everyone, because even the West is dependent on Russian gas and oil,’ – explains Rantiņš.

The head of the association also notes that a new market can be found to replace the lost one. ‘Businessmen closely follow developments of the situation. They are always on the move to somewhere else – go around in search of new markets and customers,’ – says Rantiņš.

When asked if companies can reorient from the east to somewhere else, Rantiņš notes that reorientation is not a simple thing to do.

He adds that mechanical engineering and metalworking industries hold 25% in exports among all processing industries and 20% in total production volume. In 2012, the industry’s total produced volume reached EUR 1.8 billion and had exceeded that of 2008. The closure of LM had impacted production volumes by approximately EUR 1.45 billion.

The decline was rather large, because production of metals forms nearly 30% of the industry’s total production volumes. The total decline in production volume for the industry was 18% in comparison with 2012. If the impact caused by LM is not taken into account, however, it seems there was actually an increase of 2%.

‘Aside from the story with LM, the situation as a whole was not bad last year. If we look at the first three months of 2014 and entrepreneurs’ mood, it would appear their view on life is optimistic. Yes, there are some companies whose export is aimed at the east. It is also likely they are not experiencing the best of times at the moment. The industry’s total export volume was approximately 80% of the total production volume. This is why any fluctuations always have an impact on the industry,’ – says Rantiņš.

The industry exports goods to 116 different countries of the world. The majority of the export (70-75%) goes to Europe, including Norway and Iceland. The east – Russia, Ukraine, Kazakhstan and other CIS countries – receive 12% of exports. ‘The European market has experienced some changes – we mostly left southern European markets when the crisis began there. Now our main export markets are those of Germany and Scandinavian countries,’ – adds Rantiņš.

Ref: 103.109.109.2432


Leave a reply

Ryanair earns 20% less in April-June and readies for strikes

The Irish airline Ryanair has registered a 20% fall in profits as it has had higher wage costs as the airline as a result of continuing industrial action by staff over remuneration and conditions.

Swedbank: Riga is behind neighbouring capital cities with real estate deals

With residents’ purchasing power and savings on a rise, more and more residents consider housing acquisition options, according to Swedbank data.

Lithuania's Šiauliai has plans for a joint discount and service system with Latvia's Jelgava

Šiauliai municipality plans to adopt a joint discount and service system with Jelgava.

Criminal prosecution requested for two police officers for cheating at gambling

Internal Security Bureau has requested the prosecutor’s office to commence criminal prosecution of several people, including two police officers, for using illegal computer software to cheat at slot machines.

Fire in Valdgale held at bay within perimeter; Crisis Management Council calls emergency meeting

Last night, firefighters in Latvia managed to hold at bay the fire that had run through Valdgale County last week within the safety perimeter, says State Fire and Rescue Service press-representative Inta Palkavniece.

Nearly 10% of HIV infected in Latvia are youngsters

Latvia is currently the leader among newly uncovered HIV cases in Europe. On top of that, nearly 10% of all HIV infected are youngsters, says public health specialist Baltic HIV Association member Anda Ķīvīte.

In pictures: Large wildfires in Sweden continue

In Sweden, record summer temperatures and weeks without rain have caused series of wildfires across the vast country.

Lursoft: catering sector in Latvia – how much industry leaders earn and pay in taxes

Using a study and compiling data on companies’ business activities for the past three years, Lursoft wanted to find out if it is true catering companies in Latvia work with losses, and what their tax contribution is.

Shooting attack in Canada claims lives

A shooting attack has taken place in Toronto, Canada, with two people having been killed died and 13 others injured.

Farmers in Estonia active in Open Farm Day

Estonian farmers have held their fourth Open Farm Day as over 250 farms in the Baltic country invited everyone interested to experience growing and making of domestic food and agricultural products.

Police commence investigation of an offshore network owned by Lembergs’ daughter

Latvian State Police has commenced an investigation following journalists’ publication of materials about an offshore network owned by suspended Ventspils Mayor Aivars Lembergs’ daughter.

Polish Sejm rushes to change defiant chief Judge of Supreme Court

Poland's legislators have passed rules to hasten the changing of a new Supreme Court chief as part of far-reaching judicial reform that has been criticised by the European Commission among others.

Heat wave to continue in Latvia along with thunderstorms and heavy rain at times

The heat wave active in Latvia will not back off this week – days will remain hot and night-time air temperature will not drop below +20° C. Heavy rain and thunder will be observed nearly every day this week, according to Environment, Geology and Meteorology Centre.

Bulgarian parliament opposes readmission of migrants from EU countries

Bulgarian parliament prohibited the its government from signing bilateral agreements with other European Union member states on readmitting migrants first entered the bloc in Bulgaria.

Week in Lithuania. Liberals ex-leader fails to recover confiscated cash

Eligijus Masiulis, a former Liberal Movement leader on trial in a major political corruption case, has failed to recover cash that was found and seized during searches of his home.

BNN summary of the week: open presidential election in Latvia and no more plastic bags for shoppers

BNN offers a summary of this week’s topical news in a variety of categories: Future; Change; Fight; Decline; Business; Progress.

SRS: cash register reform still stagnates, but has become much faster than it was last year

The cash registers reform continues stagnating. However, it has become much faster than it was a year ago, as reported by State Revenue Service.

Specialists to search for solutions to topical environmental problems in Ventspils

On Friday, 20 July, a meeting was held between Ventspils Commercial Port representatives and specialists from State Environment Service.

Children with functional disorders to receive services financed by EU funds

Child invalids will have access to social services intended to improve their social skills and mobility. More than EUR 4.2 million has been allocated for this goal from the European Social Fund, as confirmed by Latvia’s Central Financing and Contracting Agency.

Producer price level in industry up 4.3% in Latvia

Compared to June 2017, the average level of producer prices in Latvian industry increased by 4.3 % in June 2018. Prices of products sold on the domestic market rose by 4.8 % and those of exported products by 3.7 %.

Total tax debts in Latvia in July – 1.212 billion euros

At the beginning of July total tax debts in Latvia, including outstanding debts, halted debts and debts applied with repayment term extensions, accounted for EUR 1.212 billion, which is 0.8% less than a month prior, according to data from the State Revenue Service.

Survey: every third Latvian resident has received illegal loan offers

Nearly every third resident in Latvia or 31% of respondents admit having received offers to use illegal loan services, as concluded in a survey performed by Latvian Alternative Financial Services Association and SKDS.

Libya opposed to EU's idea to establish migrant centres in North Africa

Libya is against the solution of the European Union to set up migrant centres in the North African country as a means to keep migrants from arriving in the bloc and Libya would not be convinced with financial support, its Prime Minister Fayez al-Sarraj has noted.

Arrest warrant on Catalan ex-President cancelled by Spain

The Supreme Court of Spain cancelled a European arrest warrant for former Catalan regional leader Carles Puigdemont, as Germany refused to extradite him to face accusations of rebellion for declaring the independence of Spain's region, Catalonia in 2017.

Latvian government plans to allow handing expired food to charity

Latvia’s Agriculture Ministry has prepared amendments to the Law on the Supervision of the Handling of Food that provide permission to hand over certain types of food products to charity after the end of their expiry date.