Daugavpils lokomotivju remonta rupnica
Comments on the situation at the enterprise.

Daugavpils lokomotivju remonta rupnica 

22.01.2015 10:03

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Daugavpils, 2015-01-22 10:03 CET (GLOBE NEWSWIRE) -- Currently JSC 'Daugavpils
Lokomotīvju Remonta Rūpnīca' does not have any obstructions from Russian
Federation to work with Russian Railways and the branch enterprises.
Considering the long-term experience of positive cooperation, JSC 'Daugavpils
Lokomotīvju Remonta Rūpnīca' has the ability to do its main activity (repairing
locomotives and manufacturing of spare parts for them), but the costs of these
services since the devaluation of the Russian ruble make these orders for JSC
'Daugavpils Lokomotīvju Remonta Rūpnīca' uneconomical. 'Daugavpils Lokomotīvju
Remonta Rūpnīca'  revenues from deals with Russian enterprises decreased
significantly since the devaluation of the ruble. It also affects the number of
contracts in 2015 with traditional partners in the Russian Federation due to
their uneconomical. 

In recent years, JSC 'Daugavpils Lokomotīvju Remonta Rūpnīca' re-invested in
machinery equipment and infrastructure 7 million EUR to diversify production.
However, the international crisis of political relations caught JSC 'Daugavpils
Lokomotīvju Remonta Rūpnīca' at a time when a lot of money invested in
equipment, but this equipment is not running and do not work at full capacity. 

Therefore, the priority in 2015 for JSC 'Daugavpils Lokomotīvju Remonta
Rūpnīca'  is the development of new markets and new products, including
mechanical engineering. JSC 'Daugavpils Lokomotīvju Remonta Rūpnīca' has the
material and technical basis for this including new equipment purchased for the
modernization of machinery equipment, and is co-financed by ERAF. 

JSC 'Daugavpils Lokomotīvju Remonta Rūpnīca' widely participates in
international trade fairs, actively carries on negotiations with potential
customers, contracts and communicates openly with the media, explaining to
people that difficulties, which the plant has, are temporary and are caused by
the international economic crisis. 

JSC 'Daugavpils Lokomotīvju Remonta Rūpnīca' has developed a marketing plan for
2015. According to calculations, 'Daugavpils Lokomotīvju Remonta Rūpnīca'  is
able to compensate the drop of output volume from the traditional Russian
market by contracts in other markets. 

There is no mass layoff at JSC 'Daugavpils Lokomotīvju Remonta Rūpnīca'. There
is a planned reduction in the number of employees in connection with the
situational decline in production in the 1st quarter. Also to increase the
economic efficiency of the production, will be carried out the plant
reorganization, optimization of production processes, reducing running costs,
what may affect the reduction in the number of staff. 

The Chairman of the Board N.Petrova



Natālija Petrova

The Chairman of the Board

t. 65404420, petrova@dlrz.lv
News Source: NASDAQ OMX



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Language:     English
Company:      Daugavpils lokomotivju remonta rupnica
              
               
              Latvia
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         LV0000101061
WKN:          
 
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