RIGA, Sept 2 (LETA) - German cleaning equipment manufacturer Karcher is planning to open a production facility in Latvia, creating at least 200 new jobs, LETA learned from the Communication and Information Department of the Investment and Development Agency of Latvia (LIAA).

Karcher board member Michael Hausermann confirmed the company's intention to open a new production facility in Latvia during a meeting with Prime Minister Krisjanis Karins (New Unity) and Economics Minister Janis Vitenbergs (National Alliance) on Thursday.

Karcher has already purchased a building complex in Raubeni, Cenu County, Jelgava Region, which will house a production facility and a warehouse. Implementation of the new investment project will take place in close cooperation with LIAA.

"Our common goal is economic development and increasing the well-being of the population. To achieve this, the government has defined smart reindustrialization as a priority, fostering the development of export-oriented manufacturing. Karcher management's decision to invest in Latvia is in line with the policy pursued by the government, as well as with the historically strong industrial traditions in Latvia. The government will continue to improve the business environment in order to further attract new investments that provide our citizens with stable and well-paid jobs," said Karins.

Meanwhile, Vitenbergs emphasized that Karcher was a world-class brand that would strengthen the Latvian mechanical engineering industry by manufacturing high value-added products. "This is a confirmation that we are competitive and can provide all the necessary conditions for companies of this level and for significant foreign investments to enter Latvia," said Vitenbergs.

Initially, Karcher's production facility in Latvia will make spare parts for utility vehicles, for instance, as street sweepers, later on it will also start assembling such vehicles. The main target market is comprised of municipalities, horticultural companies, and landscaping companies.

During the meeting, Hausermann pointed out that the decision to establish a production facility in Latvia was largely influenced by logistical problems caused by the Covid-19 pandemic. "With the establishment of the plant in Latvia, we will be able to make Karcher's long supply chains shorter, as Latvia will ensure both manufacture of parts and assembly of vehicles. The final products will be exported directly from Latvia to the main target markets in Western Europe and elsewhere," he explained.

LIAA Director Kaspars Rozkalns said that LIAA had been working on the project since the summer of 2020 and provided all the necessary support so the investor could start its operations in Latvia.

According to Rozkalns, Karcher had also considered other alternatives, including setting up the production facility in the neighboring countries as well as some Central European countries, but Latvia's offer was the most competitive in terms of costs and project implementation time.

Karcher SE & Co. KG. was founded in Germany in 1935. The company's total turnover in 2020 amounted to EUR 2.72 billion. The company has a total of 13,500 employees, of which one thousand work in research and development. The company introduces 150 new products or innovations to the market every year, while 90 percent of the company's products were introduced up to five years ago. Karcher exports its products to 72 countries, including Latvia.