News

LSM.LV: Latgale SEZ – a Strong Magnet for New Business

Last year was one of the strongest in the history of the Latgale Special Economic Zone (SEZ) in terms of the volume of investments attracted. In total, the Latgale SEZ Authority signed 11 investment agreements for investments of almost EUR 40 million, creating almost 80 new jobs in Latgale, Latvian Rado reports on 25 July.

Five new companies joined the Latgale SEZ last year. This year is also promising, with six new companies having already joined the SEZ. 12 contracts have been signed for investments of €5 million and around 40 new jobs created.

The Latgale SEZ was established eight years ago in 2017. The interest of entrepreneurs in the zone shows that the establishment of the Latgale SEZ has been bringing economic benefits to the region for several years.

Currently, 38 capital companies are doing business in the Latgale SEZ, and 91 investment agreements worth more than EUR 106 million have been signed. More than 700 new jobs are planned to be created, of which about 500 have already been created.
A delegation of experts from the European Commission’s DG REGIO is visiting Latgale

From July 1 to 4, representatives of the European Commission's Directorate-General for Regional and Urban Policy (DG REGIO) visited Latvia to discuss the development needs and future opportunities of Latvia's border regions together with The Ministry of Smart Administration and Regional Development of the Republic of Latvia, the Latgale Planning Region (LPR), and local governments in Latgale.

Meeting at the Ministry of Finance: EU Funds and Security Priorities

The visit began with a meeting at the Ministry of Finance of the Republic of Latvia, where the following key topics were discussed: Progress in the implementation of EU funds, emphasizing the stable pace of investment expected to continue through 2025; Mid-term revisions, with significant reallocations focusing on national security—including cybersecurity, military mobility, energy independence, civil protection, and regional resilience; Framework for the next EU programming period, outlining national investment priorities and the most effective support mechanisms.

Field Visit to Latgale: Understanding Local Challenges First-Hand

The EC delegation traveled to Latgale to gain on-the-ground insight into the challenges faced by border municipalities, entrepreneurs, NGOs, and education sector representatives.
Nordic Committee for Co-operation visits Latgale Planning Region

On 23 May 2025, the Latgale Planning Region (LPR) office had the honour of welcoming representatives from the Nordic Committee for Co-operation (NSK). Comprising senior public officials from all Nordic countries, NSK is responsible for the day-to-day operations of Nordic intergovernmental cooperation, including international collaboration.

Earlier, on 21–22 May, NSK held meetings in Riga at the Nordic Council of Ministers' Office. This marked the first time the Committee convened not only in Latvia, but in the Baltic States — a significant milestone that highlights the growing strength of Baltic-Nordic relations and the Nordic region’s continued commitment to deepening its presence and engagement in the area.

The three-day programme concluded with a visit to the Latgale region. During the visit, LPR had the opportunity to showcase cross-border cooperation projects developed in the region and its municipalities, many of which draw inspiration from Nordic practices. The visit offered NSK representatives valuable insights into the realities and issues of Latvia’s eastern border region.
We are strengthening International Ties: Hungarian Delegation Visits Daugavpils and Latgale Special Economic Zone

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.
Latgale SEZ Company “Light Guide Optics International” Receives Prestigious Intellectual Property Award “Visionary”

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.
EC and World Bank Experts Convene in Daugavpils to Address Challenges and Unlock Development Potential in Europe’s Border Regions

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.
Entrepreneurs Gain Comprehensive Insights into Business Support Programs at LIAA Info Hour

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.
Kuprava Industry SIA Joins Latgale SEZ

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.
2024 at the Latgale SEZ Administration: powerful year for attracting investments and fostering new business ventures

Year of 2024 marked a historic milestone for the Latgale Special Economic Zone (Latgale SEZ), achieving unprecedented success in attracting investments. A total of 11 investment agreements were signed, amounting to nearly €40 million, while 5 new companies joined the SEZ. These developments are expected to generate at least 78 new jobs in Latgale by the end of 2024.

Jānis Lāčplēsis, Chairman of the Latgale SEZ Supervisory Commission, emphasized the region's resilience and adaptability amid global economic challenges:
"Despite external factors impacting the economy, the Latgale SEZ Authority remains committed to seeking innovative ways to attract new investors and encourage existing companies within the SEZ to invest in their growth. Today, the competitiveness of businesses increasingly depends on technological advancements, efficiency improvements, and innovation. Technological innovation is precisely what positions Latgale as the Silicon Valley of Latvia."
The Action Plan for Security and Growth on the Eastern Border provides extensive support for business and economic zones

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.