There are several factories in the territory of Rezekne Special Economic Zone (Rezekne SEZ), but do you know what is produced there and where these products are used? Rezekne SEZ commercial companies represent different sectors and their products are widely used in construction, automobile production, transport, etc. and are exported to many countries in the world. More than half of Rezekne SEZ commercial companies export their products abroad.
We offer a look at 3 Rezekne SEZ commercial companies, which manufactured products are renowned for their high quality and specific characteristics, and have entered the international market.
RSEZ SIA “LATSTAB”
RSEZ SIA “LATSTAB” produces large-scale steel products for a variety of areas of civil engineering, including road construction, construction, telecommunications. Currently, the company is the only certified manufacturer of conical lighting poles and masts in Latvia. RSEZ SIA “LATSTAB” lighting production is produced according to the European standard EN 40-5 and lights many important objects.
RSEZ SIA “LATSTAB” discovered the fifteenth country of export in 2019 and, compared to the previous year, achieved a 20% increase in the company's exports with a 98% share of exports from the entire company's turnover.
One of the recent most excited projects by RSEZ SIA “LATSTAB” is the production of lighting poles for Ahmed bin Ali stadium in Qatar. As a part of the project, 25-metre masts were constructed, with a total mass of 58 tonnes. The FIFA World Cup, with more than 40,000 viewers, will be organized in the stadium in 2022.
“VEREMS” RSEZ SIA
“VEREMS” RSEZ SIA plywood factory produces the largest birch plywood in the world in terms of size (2290 × 4000 millimetres). In recent years, the company has expanded, installed new equipment, and built production facilities. The newly built buildings are made of wooden constructions, proving that wood is a good building material also in industrial buildings.
Birch plywood has several excellent properties. It is characterized by very good strength indicators, so it is widely used in the production of transport - cars, trailers, containers, train wagons, ships, boats, yachts, etc. A specific use of birch plywood is in liquefied gas tankers. There birch plywood is used in special insulation panels, which must withstand temperatures below minus 160 degrees Celsius. Other materials, such as metal, become brittle at this temperature and are no longer able to perform their tasks.
JSC “Latvijas Finieris” and its subsidiaries, including “VEREMS” RSEZ SIA, mainly cooperate with industrial end users of plywood, providing full service and working together on the development of unique products that meet the needs of each specific customer. About 90% of the total production is exported abroad through the parent company JSC "Latvijas Finieris". The main export destinations of “VEREMS” RSEZ SIA are more than 60 countries all over the world - USA, Japan, EU countries, etc.
SIA “LEAX Rēzekne” RSEZ
SIA “LEAX Rēzekne” RSEZ activities are serial metalworking, manufacturing parts for the automotive, mining, tool manufacturing, industrial and electrical installations. For many years LEAX Rēzekne has been dynamically increasing the volume of production and exports, increasing the number of employees, making significant investments in technology development, and is one of the fastest growing companies in the industry in Latvia. The company's specialists are constantly working to expand the range of products by introducing latest technologies. In 2019 the company has started operations in a new field - the production of electric car gears.
In years 2019-2020, the company has invested 16.6 million euros in a new production line with high-precision advanced equipment. Until then the company produced parts with an accuracy of one tenth of a millimetre or one hundredth of a millimetre, but with the new equipment the accuracy is much higher - it reaches a thousandth of a millimetre.
In connection with the launch of the new field, SIA “LEAX Rēzekne” RSEZ has concluded an ambitious cooperation agreement with the automotive company Volvo Cars Corporation for the production of parts for electric machines. SIA “LEAX Rēzekne” RSEZ main export destinations are Sweden, Germany, China.
Exemptions for export in Rezekne SEZ
The status of a Rezekne SEZ commercial company provides incentives for export procedures. Upon concluding a contract with Rezekne SEZ Authority, an enterprise may commence a procedure for the creation of a free economic zone in order to receive a permit for the performance of commercial activity in the free zone regime within the territory of Rezekne SEZ. The free zone regime, which includes indirect tax incentives and special customs control measures, is applied to such enterprises. The indirect tax incentives (0% rate on the value added tax) are applied for supplies of goods within the free zone of the special economic zone for further exportation.
The export success factor of Rezekne SEZ commercial companies is that they offer products with unique characteristics and high added value. Rezekne SEZ commercial companies fill specific market niches and, thanks to long-term investments in technologies, are able to adapt to market needs and changes.