Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
KVV Liepajas Metalurgs, a metallurgic company based in Liepaja, announced in late March that they had made a decision regarding the conservation of the steel plant due to the negative factors on the company's operations. On 21 March 2016, the company informed the State Employment Agency about their plans to lay off around 300 employees starting 25 April 2016. Part of KVV Liepajas Metalurgs workers preferred leaving the company than waiting until April. KVV Liepajas Metalurgs board member Igors Talanovs informed media that so far more than 100 people had left the company, but by the end of April another 150 people were planned to be laid off.
On 25 April 2016 the company started a mass lay off, and planned to lay off 153 employees during the week. 100 employees will remain employed to maintain the plant.
Representatives of KVV Liepajas Metalurgs had announced previously that layoffs would be done strictly in compliance with the effective legislation as regards the notice periods and compensations due to the workers, and over EUR 800,000 will be paid to the laid-off workers.
Dace Baumane, head of the Liepaja branch of the State Employment Agency informed media, that the Employment Agency had 290 vacancies to be offered to job seekers in Liepaja. These include jobs at industrial enterprises as well as construction and road construction jobs, there also are several vacancies for truck drivers. There will be not just welders, but also electricians, accountants, drivers and other released from KVV Liepajas Metalurgs, so many of them will be able to find a new job, Baumane said previously.
The company's management has blamed the difficulties on a high electricity price and complicated situation in Europe's metal industry. The company has had difficulties paying its electricity bills and wages to workers. It has also missed the deadline for a payment it was supposed to make to the Latvian state for the Liepaja-based plant. KVV Group is supposed to pay for the plant EUR 107 million in several installments over the next 10 years.
KVV Liepajas Metalurgs is a steel factory situated in Liepaja, a port city in south-western Latvia. KVV Group acquired insolvent metallurgic company Liepajas Metalurgs under an agreement signed on October 2, 2014. Liepajas Metalurgs was renamed to KVV Liepajas Metalurgs and officially re-opened on 6 March 2015, but soon started having problems again.
Eurofound (2016), KVV Liepajas metalurgs, Internal restructuring in Latvia, factsheet number 87405, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/87405.
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