Italian producer of road signs moves business to Latvia and plans to lure others as well

Eskuilio Martinangeli, head of the company Metalplast, admits – as the product pricing becomes increasingly important in the current economic downturn, more and more Italian manufacturers are considering relocation.

Lower costs, skilled labour with experience in machine building and good geographic position for entering new export markets were the main reasons why Italian manufacturer of road signs and equipment Blu Way Group decided to establish its manufacturing unit in Latvia. If the project succeeds in meeting the expectations, then Mr. Martinangeli will surely encourage other Italian producers to follow their example. One such solid candidate is Pirelli – market leader in production of rubber articles.

Blu Way Group commenced its operations in Italy in 2001. In recent years it has reached turnover of approximately 20 MEUR and gained 10% of Italy’s road sign market. The company started to search for a country offering lower cost base already in 2005 when India, Korea, China and other low cost countries took the centre stage in bulk manufacturing. The search resulted in establishment of a daughter company in Latvia – SIA Nordic Metalplast, which recently celebrated opening of its manufacturing unit at the Jelgava business park. It currently employs 30 highly motivated specialists, who have been able to master the technologies in no time.

Production relocation costs thus far have reached EUR 600,000 and allow for manufacturing of metal and rubber parts for road cones and barriers among others. Further investment in equipment amounting to EUR 700,000 is required for the company to manufacture end-products also in Latvia. 

Metalplast also plans to attract financing from the European Union. Prototype of a new product was recently presented at the Investment and Development Agency of Latvia – fragrant car mat, which releases scent upon coming in contact with driver’s feet. This could be one of the first Metalplast products, which could also be purchased in Latvia. At present manufacturing of company’s basic products is geared toward Italy’s market only, but the company plans to enter the Baltic, Russian, Polish and Scandinavian markets as well. Latvia’s geographic position will certainly aid in implementation of such plans. 
 
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SIA Nordic Metalplast

Activity: production of metal and rubber equipment for road construction and maintenance

Owners: Blu Way SRL, Edelweiss Participations, Five Baltic Plast

Number of employees: currently at 30, planned - 100

Investment: approximately  2,5 MEUR

Source: SIA Nordic Metalplast, Diena, Lursfot