Daugavpils, 2016-10-25 07:36 CEST (GLOBE NEWSWIRE) -- JSC “Daugavpils Lokomotīvju Remonta Rūpnīca” informs about failure to reach an agreement with Swedbank regarding extension of credit agreements terminating this year and potential default of liabilities towards the bank.
The refusal has been caused by the financial situation in the plant and the lack of confidence of the bank regarding increase of order volumes.
To save the company, 432 people or 45% of the total amount of employees were dismissed since January 2015.
The difficult situation in relations between the Russian Federation and the EU led to sharp decrease of orders of the Russian market.
Recent large-scale modernization of production in JSC “Daugavpils Lokomotīvju Remonta Rūpnīca”, the aim of which was reorientation towards the European market, concurred with the crisis of international relations connected with tensed relations between Russia and the EU. Political crisis caught the plant during that difficult moment, when large funds were invested into equipment, but it was not working with its total output.
Likewise the company, having all chances to produce trams, electric trains and other rail transport, has no possibility to participate in the international competitions due to the lack of experience. The only way to get it is to receive the first orders inside the home country from municipalities and public companies.
Successful completion of diesel train modernization project for Pasažieru vilciens proves the company’s potential, and this is obvious triumph of the Latvian industry and JSC “Daugavpils Lokomotīvju Remonta Rūpnīca”, being one of its members, as a result of which an ultramodern train was created and Latvia returned to the elite of the world producers of rolling stock after decades of stagnation.
Understanding the responsibility towards country, city, employees and their families, in the current situation, for the purpose of saving one of the oldest companies in the country with its 150 years history, the Board of JSC „Daugavpils Lokomotīvju Remonta Rūpnīca” turned to the government of the Republic of Latvia with a request to receive government guarantees for provision of bank credit.
Board of JSC „Daugavpils Lokomotīvju Remonta Rūpnīca”
t. 65404420, petrova@dlrz.lv