RIGA, March 16 (LETA) - Considering the war in Ukraine, Daugavpils Lokomotivju Remonta Rupnica (Daugavpils LRR) train engine repairs company might have to fire at least 300 employees and possibly close down the plant in the future, LETA learned from the company.

The company said that since February 24, the DLRR financial situation in under threat due to the war in Ukraine. The company has completed the order for Ukrainian company Metinvest Group, but the company due to the political situation is not able to pay the bill of EUR 8,229,550.

DLRR representatives said that without an urgent and efficient support mechanism, the situation in leave an impact not only on Daugavpils region, but consequences will be felt in the whole country.

On March 2, DLRR sent a letter to Latvia's top state officials, explaining the difficult situation. The letter also listed the measures that would help to ensure uninterrupted operations of the company.

DLRR said that the plant is the largest plant of the kind in the Baltic states and one of the largest producers in Daugavpils region. The plant employs 642 people and has local and international cooperation with 360 partners, the company has paid EUR 28.593 million in taxes over the past ten years. 

Without any support measures, the company will be forced to lay off about 300 employees, thus, affecting lives of about 1,000 people - employees and their families.

DLRR does not exclude conservation or closure of the plant. In that case, all the remaining employees will be laid off.

The company said that the company's board is ready to reprofile its activities. The company also noted that its capacity might play a significant role when Ukraine starts to rebuild its railway after the war.

In 2020, the company posted EUR 46.76 million in turnover, while the company's profit was EUR 2.066 million. The concern's turnover reached EUR 39.7 million, and profit was EUR 2.4 million.

The company was registered in 1991 and has a share capital of EUR 24,445,037. The beneficial owner is Estonian businessman Oleg Ossinovski.