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Monday 26.08.2019 | Name days: Tālija, Natālija, Broņislava, Broņislavs
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Trader: Latvia should be offered as factory placement site

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU, Janis Jurgelis

Janis Jurgelis

By actively positioning Latvia as a production base, government officials should think more about the attraction of investors, considers Jānis Jurģelis (Jurgelis), CEO of SIA Foboss Viens.

Basically, it is possible to place a number of production facilities in Latvia, employing many people, thus combating unemployment. Toys business is very profitable, but it is not the best segment for investments, because the return period is not that fast, Jurgelis says.

He indicates many of A-Class toy manufacturers are now moving production facilities from China and other low-cost territories back to the Western Europe, for example, Smoby and Chicco.

According to the businessman, there were several offers from cooperation partners to use Latvia as a tax-free zone, afterwards opening factories here. Presently, this company that I do not want to disclose decided to shift its toy factory to the Czech Republic. The key factors for choosing an investment location is a better tax policy, more friendly business environment and other. In this case, the Czech Republic benefited from its location near the large markets – the UK, Germany, Jurgelis explains.

Latvia could also be selected as an investment place if the manufacturer focused on the Eastern markets as well, considers the representative of Foboss One, noting Latvia should be popularized more actively.

Moreover, the European Union (EU) supports this type of change with various subsidies. In a way the EU is an attempt to restore the Roman Empire; however, the Roman Empire collapsed when everything was redirected to regions starting to dictate rules. China is now doing the same. So that the history would not repeat, the last-minute decision is to move production back to Europe, Jurgelis indicates.

Currently, major toy manufacturers are based in Germany, Czech Republic, Poland. Many manufacturers are also situated in Italy, France, Spain, but China is undoubtedly the children’s toy production mecca, Jurgelis says.

The toy network Lāčuks is owned by SIA Foboss Viens, which was founded on November 17, 1993. The company’s equity capital amounts to 468 300 lats. Valdis Vēvers, Aigars Bute, Viktors Mežeckis each hold 33.33% shares in the company. In 2010, the company turned 2.57 million lats and made a profit of 30 000 lats.

At the moment, there are 20 stores under the brand Lāčuks in Latvia – in Riga, Sigulda, Ventspils, Liepaja, Kuldiga, Saldus, Jelgava, Bauska, Daugavpils, Ogre and elsewhere. Four Lāčuks stores operate on a franchise basis – in Cesis, Adazi and Ogre. The company employs 80-100 workers.

 

 


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