RIGA, April 29 (LETA) - The Economics Ministry on Thursday informed the government about  the plans ofTurkish company Aslanli Metalurji to invest in the Liepajas Metalurgs metallurgical company's electric steel melting complex and real estate, but did not disclose details of the deal. 

Economics Minister Janis Vitenburgs (National Alliance) told journalists following the government meeting that in the closed part of the government meeting, the Economics Ministry informed about the Turkish company's intention to invest in the territory of Latvijas Metalurgs. 

"The auction has been completed, the deal is in the finishing stages and today the Economics Ministry informed the government about this," the minister said, adding that the government only heard the information as it is not expected to take any decisions in this case. 

The minister declined to elaborate on the deal, saying that this is the competence of FeLM.

As reported, Turkish company Aslanli Metalurji has offered FeLM to buy KVV Liepajas Metalurgs metallurgical company's electric steel melting complex and real estate, and investing EUR 200 million in the company over the next five years.

Aslanli Metalurji is planning to invest in Latvia to transform KVV Liepajas Metalurgs into an efficient and sustainable company in accordance with the European Union's standards.

According to Aslanli Metalurji, resuming KVV Liepajas Metalurgs' operations will initially require 400 to 500 employees, and then 700 to 1,000 employees as the company's production volumes increase. KVV Liepajas Metalurgs' turnover is projected at EUR 500 million to EUR 600 million annually.

The Turkish company is looking forward to cooperating with Liepaja City Council, Liepaja Special Economic Zone, and companies operating at Liepaja Industrial Park. The Baltic region exports more than a million tons of scrap metal annually, and resuming KVV Liepaja Metalurgs operations would create added value for the Latvian economy, said Aslanli Metalurji.

Aslanli Metalurji is part of Turkey's Epas Group, whose companies currently employ 1,100 people. Epas Group real estate business in Turkey is worth more than EUR 500 million.

As reported, KVV Liepajas Metalurgs was declared insolvent in September 2016.

FeLM is a subsidiary of the public asset manager Possessor (formerly Latvian privatization Agency).