News

On 16 April, we had the honour of welcoming a delegation from the Embassy of Hungary - H.E. Mr. György Urkuti, Ambassador of Hungary to the Republic of Latvia; Dr. Zsolt Páva, First Counsellor, Consul, and Head of Cultural Affairs; and Mr. Péter Soltész, Economic Attaché.

The delegation visited Latgales planning region, where Deputy Manager of the Latgale special economic zone Vladislavs Stankevičs, presented the work of the Latgale SEZ and highlighted its key benefits for both foreign investors and local businesses.

The Hungarian representatives also toured two prominent companies from Daugavpils – Latgale SEZ capital company Ziegler mašīnbūve SIA and Daugavpils lokomotīvju remonta rūpnīca AS – gaining insight into the region's industrial capabilities and investment potential.

As part of the events marking the 105th anniversary of the Patent Office, the Intellectual Property Award “Visionary” was presented on 8 September 2025 during a formal ceremony. This year’s recipient is “Light Guide Optics International” Ltd., a company operating within the Latgale Special Economic Zone (Latgale SEZ) and based in Līvāni.

Specialising in the development and production of optical fibres, fibre bundles, cables, and laser delivery systems, the company was recognised for its significant contribution to the advancement of intellectual property both nationally and internationally, as well as for its role in fostering economic growth in Latvia.

The “Visionary” award was established in 2023, with Aerones Engineering Ltd., a robotics firm serving the wind energy sector, being the inaugural recipient. Light Guide Optics International is only the second company in Latvia to receive this distinguished recognition, underscoring its leadership in innovation and intellectual property excellence.

Over the course of two days, experts, policymakers, and stakeholders gathered in Daugavpils to explore strategic development opportunities and address persistent challenges faced by Europe’s border regions, with a particular focus on Latgale. The Forum centred on enhancing cross-border cooperation, identifying growth drivers, and leveraging the region’s unique assets.

The first day of discussions focused on integrated regional planning, examining both horizontal and vertical governance frameworks. Participants analysed the role of functional zones as catalysts for regional growth and discussed service provision across administrative boundaries. Best practices and practical case studies from Latvia, Lithuania, and Estonia were shared, complemented by a collaborative workshop aimed at generating actionable ideas and strategies.

On March 4, 2025, the Latvian Investment and Development Agency (LIAA) Representation Office in Daugavpils hosted an INFO HOUR, providing entrepreneurs from Daugavpils, Augšdaugava, Preiļi, Līvāni, and Krāslava regions with a unique opportunity to explore key business support initiatives.

During the event, participants gained valuable insights into the latest incubation and pre-incubation programs, their admission criteria, and funding opportunities available through the Development Finance Institution ALTUM and the Latgale Special Economic Zone (Latgale SEZ).

Vladislavs Stankevičs, Deputy Governor of the Latgale SEZ, highlighted that since its establishment in 2017, Latgale SEZ has played a crucial role in attracting investments, modernizing production, and fostering job creation in the region. He emphasized the significant benefits available to businesses, including:

✅ Up to 80% corporate income tax relief
✅ Up to 100% real estate tax exemption.

At the beginning of 2025, Kuprava Industry SIA officially became a member of the Latgale Special Economic Zone (Latgale SEZ). The company, based in the border village of Kuprava in the Balvi district, is the creator and developer of the Sauna LAB brand, specializing in the production of premium wood-frame saunas and modular buildings. Combining craftsmanship with innovation, Sauna LAB products integrate digital features, remote control functionality, customized design, and long-term durability. Each unit is constructed from high-quality, eco-friendly materials, ensuring adaptability to diverse customer needs and varying climate conditions.

Despite being a relatively young company, Kuprava Industries has rapidly established a strong brand presence in the Latgale border region, actively contributing to local economic development. The company is committed to job creation and employee well-being, fostering a stable and supportive work environment. Over the past two years, the team has expanded from three employees to a workforce of 13, reinforcing its strategic vision—to strengthen its market position both domestically and internationally by offering a diverse portfolio of high-quality, innovative products.

The government on Tuesday, 14.01.2025. endorsed an Action Plan for the economic growth and security of the Eastern Border Region from 2025 to 2027, which will cost more than EUR 640 million.

The plan identifies the main challenges that need to be tackled in the eastern border area as a result of Russia's war against Ukraine. These challenges are common to countries bordering with Russia and Belarus in the EU and include the worsening of the already unfavorable economic situation, difficulties in maintaining business activity, for instance, small and medium-sized enterprises.

The negative impact on citizens' sense of security and increased social tensions have been cited as challenges, hence the need to strengthen societal resilience and preparedness.

Negative impacts on potential investment flows, disrupted transport corridors, and halted tourist flows were also mentioned in the action plan.

The measures included in the plan are aimed at strengthening security, economic development and human resources development.

On January 10, representatives from the Latgale Special Economic Zone (SEZ) Administration, along with the Chairman of the SEZ Supervisory Commission, Jānis Lāčplēsis, visited the village of Kubuli in the Balvi district. Their visit focused on observing the progress of the investment project “Development of a Wood Drying Kiln 2023,” implemented by SIA "Vitai."

“Vitai” acquired Latgale SEZ status in 2023. The company specializes in producing environmentally friendly firewoods. This product is not only one of the most affordable and sustainable options available today but also a highly demanded export commodity for businesses and individual consumers alike. As emphasized by the company, firewood remains one of the most eco-friendly sources of heat energy.

The investment project under the Latgale SEZ aimed to enhance business operations by increasing production capacity and boosting competitiveness both in Latvia and international markets. By scaling up production, Vitai SIA expanded its product offerings to meet the needs of its established customer base while attracting new clients with a broader range of products.

December 20, 2024 in the history of the Latgale Special Economic Zone (Latgale SEZ) administration becomes a significant development indicator – the largest investment project ever with the high-tech company SIA “Light Guide Optics International” located in Līvāni is concluded.

SIA “Light Guide Optics International” plans to invest 33 million euros in the Latgale SEZ territory for the implementation of investment projects, with a total of at least 35 new jobs expected to be created.

SIA “INVESTING” joined the Latgale Special Economic Zone (Latgale SEZ) in 2023. Currently, the company has implemented its first investment project “Initial Investments in Real Estate”, adapting existing real estate to the requirements of tenants and increasing the capacity of its services.

The goal of real estate developer SIA “Investing” is to attract companies that value and are looking for high-quality, energy-efficient buildings that are adapted to production needs and comfortable working conditions.