Mechanical Engineering and Metalworking Industry

The Latvian mechanical engineering and metalworking industry goes back a long way and is a cornerstone of country's economy today. Since the end of the 19th century till nowadays Latvia has remained an important centre of manufacturing in the Baltic region.

About Latvian Mechanical Engineering and Metalworking Industry

At the beginning of the 20th century, companies were producing railway carriages, trams, turbines, various types of agricultural machinery, bicycles and a range of different metalworking products. 

Today, the sector has been restructured to compete in the global marketplace, mostly with export-oriented contract manufacturing activities, increases in productivity, increases in management skills and competitive salary levels. 

Four-fifths of the sector’s total output is exported. A significant part of European Structural Funds for economic development programmes has been used for the reconstruction of infrastructure, modernization, the invention of new technologies, innovations and staff training. 

In 2015, the sector employed about 26 000 people.

33% of the total amount of Latvian exports in 2015 contributed by machinery and mechanical appliances, base metals and base-metal articles, electrical equipment and transport vehicles.

About Latvia

Accessibility to large markets

Latvia is in a unique geographical and cultural position—as the northern European country it provides a strategic location for business operations targeting developed EU markets and emerging markets of the Eastern neighbours. Latvia is a natural gateway between the US, EU and Asia (especially Russia/CIS).

Skilled and motivated workforce

Representing northern European culture, Latvians have a strong work ethics and they are highly motivated, especially given the effects of the recent global economic crisis.

Developed infrastructure

Latvia offers all the infrastructure and services companies need to operate at levels that meet or exceed European standards.

Information and communications technology

Latvia has one of the fastest telecommunication infrastructures in the world, providing companies seamless connections with customers and partners abroad.

Transport & Logistics


One of Latvia’s main assets providing access to markets is its Maritime links. Latvia has three major ice-free international ports—Riga, Liepaja and Ventspils, that are closely linked into the country’s infrastructure by rail, road and pipeline. Latvia is an active partner of the Baltic Sea Region Programme—an EU-based organization that promotes cooperation and solutions among 11 countries around the Baltic Sea.


To the east, Latvia is one of only three EU countries that have a direct-access border with Russia, making it ideal for east/west trade. The Russian highway M9—the developed road-freight route known as the Baltic Highway—connects Moscow directly with Riga, where it also joins with the Via Baltica highway running north and south between Helsinki and Prague.


The Trans-Siberian railway connects Riga directly with Moscow, with regularly-scheduled, container-block trains. Latvia and Russia share a common railway gauge and an infrastructure base that continues to facilitate growth in the flow of trade. By 2030 it is planned to complete the Rail Baltic—a unique project of an European-gauge railway line connecting the capitals of the Baltic states and Poland, integrating the Baltics in the European rail network.


Riga International Airport (RIX) is the largest airport in the Baltics with direct flights to more than 60 destinations around the world. RIX is also conveniently located directly connecting with major roads including Via Baltica and the Baltic Highway.

Economics & Politics

Macroeconomic and political stability

Latvia is a fully integrated member of all major economic and political structures, including the EU, NATO, WTO, and OECD. Its position in the global market offers investors both opportunity and stability.

Macroeconomic security

In the wake of the economic crisis in 2008, government has reduced expenses, implemented several pro-business reforms and focused policy on being a reliable partner for investors. Latvia’s government took measures that were successful leading country out of the crisis and laying the groundwork for sustained growth.

Political and legal stability

Latvia is a democratic republic that abides by the rule of law. It is fully integrated into the European Union, applying EU laws and regulations within its legal system.

Cost effectiveness

Latvia offers significant cost advantages to investors, including competitive labour force and real estate expenses, as well as competitive tax rates. Coupled with strong productivity in manufacturing and services, Latvia provides investors with a highly cost-effective environment for business, producing compelling returns on investment.


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