German companies in Latvia are spearheading investment projects totaling more than EUR 600 million - LIAA

RIGA - During a trade mission to Berlin organized by the Latvian Investment and Development Agency (Latvijas Investiciju Un Attistibas Agentura, LIAA), investment projects by German companies and new opportunities for cooperation in Latvia in the fields of energy, defense technology, autonomous mobility, and space technology were promoted, the LIAA informed LETA.

The total planned value of the two most advanced investment projects exceeds EUR 600 million. 54 Latvian companies and organizations participated in the mission, meeting with potential clients, investors, banks, manufacturers, research centers, and medical institutions. The trade mission in Berlin took place from September 14 to 17. The companies represented the information and communication technology, financial technology, life sciences, defense, and dual-use technology sectors.

Summarizing the results of the visit, Economics Minister Viktors Valainis noted that three years of focused work with German partners has already resulted in concrete investment projects totaling more than EUR 600 million. "In Berlin, we discussed the further implementation of a renewable energy project with Notus Energy, and with Dynamit Nobel Defence, we discussed the next steps for the planned defense technology manufacturing facility in Latvia," he said.

During the meeting with the management of Notus Energy, the future implementation of the two companies' renewable energy projects in Latvia was discussed. Attention was focused on practical issues affecting the progress of the projects, including conditions for wind farm development, grid connections, obtaining permits, and the availability of financing.

In talks with the German defense technology company Dynamit Nobel Defence, work continued on the planned production facility in Latvia. The company and the State Defense Corporation signed a memorandum of understanding in February regarding the establishment of the production facility, therefore the Berlin meeting focused on the project's next steps and opportunities to develop the company's other initiatives in Latvia.

According to Valainis, a meeting with Thomas Steffen, State Secretary at the German Federal Ministry for Economic Affairs and Energy, confirmed both countries' interest in expanding economic cooperation. "Our task is to ensure that investor interest translates into production facilities, technologies, and jobs in Latvia, while Latvian companies gain an increasingly strong foothold in the German market," said the minister.

"Latvia and Germany are united by successful economic cooperation and a shared vision of what needs to be done to promote economic growth in both countries and strengthen Europe's competitiveness. The European Union's single market is our greatest advantage, while establishing direct cooperation between companies is an essential prerequisite for successful future development," emphasized German Federal Minister for Economic Affairs and Energy Katherina Reiche and Steffen.

According to the LIAA, the Latvian delegation also met with the company HOLON, which develops fully electric, autonomous passenger minibuses for public transportation and mobility services. The discussions assessed Latvia's potential involvement in the company's European development plans, including the manufacturing of vehicles and their components, the establishment of supply chains, the testing of autonomous mobility, and technology development.

LiveEO, a Berlin-based space technology company that uses satellite imagery and artificial intelligence to monitor power lines, railways, pipelines, and other critical infrastructure, was invited to expand its operations in Daugavpils. The company's subsidiary in Latvia has been operating for four years. In a separate seminar, opportunities for data center development in Latvia were also presented to German companies, said the LIAA.

"This mission demonstrated the results of focused work following the initial meeting. In some investment projects, we are no longer just discussing initial contact - together with investors, we are moving forward with specific next steps so that, once the necessary preparatory work is completed, negotiations can give way to construction equipment," notes Vita Balode-Andrusa, Director of the LIAA's Export and Innovation Services Department.

For other Latvian companies in Berlin, this was the first discussion with a potential partner, and now it is important to turn this contact into the next practical step - arranging a technology trial, initiating supplier qualification, or reaching a contract, said Balode-Andrusa.

Germany is Europe's largest market and is located at the economic heart of the continent, notes Liva Sturmane, head of the Latvian exporters association The Red Jackets. Entering and establishing a foothold in this market often paves the way to other European regions as well. German companies are known for their high standards regarding quality, deadlines, and supplier reliability, therefore successful cooperation with them significantly strengthens a Latvian company's reputation and position in international markets, she said.

In Berlin, the LIAA, the German Association of Chambers of Industry and Commerce (DIHK), and the German-Baltic Chamber of Commerce (AHK) signed a memorandum of understanding. This will provide Latvian companies with access to the knowledge, contacts, and services of the German foreign trade chamber network at 150 locations in more than 90 countries.

As reported, the goal of the visit was to strengthen economic cooperation between Latvia and Germany, promote establishment of new business contacts, and expand opportunities for Latvian companies on the German market.

According to the LIAA, individual programs were created for the information technology, defense, and dual-use technology sectors, which included meetings with potential clients, cooperation partners, and investors. The visit also included tours of German companies, innovation centers, and research institutions.

IT companies participated in artificial intelligence festival "Big Bang AI Festival" and the sixth German-Baltic Digital Summit, as well as visited IT companies, including the Tesla plant in Berlin-Brandenburg and technology company Heidelberg. Defense sector and dual-use technology companies discussed cooperation opportunities in unmanned and anti-drone technologies, robotics, and defense supply chains, and also visited the Marienpark Berlin resilience technology center and German defense technology company Andres Industries AG.

Representatives of the financial technology sector met in Berlin with representatives of the local fintech ecosystem to discuss EU regulations on crypto-asset service providers, access to the German market, and investment opportunities. Meanwhile, representatives of the life sciences sector had the opportunity to visit Campus Berlin-Buch, a major life sciences hub in Berlin, and one of the leading medical technology companies, BIOTRONIK SE & Co. KG.

German businesses, in turn, had the opportunity to learn about the opportunities offered by Latvian companies, with a particular focus on the development of data centers in Latvia.