Daugavpils industry in trouble

  • 1999-08-19
DAUGAVPILS (BNS) - Toleram Fibers is not likely to resume production in the near future, Daugavpils thermal energy company Siltum-tikli's director Vladislavs Plisko said Monday at a meeting of managers of Daugavpils' municipal enterprises.

He confirmed his opinion by the fact that Toleram Fibers' management has not yet coordinated with Siltum-tikli the debt repayment schedule and conditions of thermal energy supply, but the chemical fiber producing company cannot resume operations without thermal energy.

Toleram Fibers owes 549,000 lats ($930,500) to the municipal enterprise Sil-tumtikli. Its management has proposed to postpone debt repayment for one year, but Siltumtikli categorically objected to the proposal because this enterprise also has considerable debts and it needs funds for fuel oil purchase.

Plisko pledged that the company will supply heating to Toleram Fibers only after a satisfactory debt repayment schedule has been negotiated.

Toleram Fibers saw the biggest drop in output this year - minus 13.5 million lats - contributing to the 42 percent, or 22.2 million lats, decline in output volumes in the whole of Daugavpils.

Lokomotive and Dauer enterprises are also in financial trouble, and the insolvent footwear factory Daugava has ceased its work.

In the first seven months of this year Dau-gavpils industrial enterprises employed about 9,000 people, a drop of 2,000 from last year.

The unemployment rate in Daugavpils stands at 11.73 percent. There are 8,082 city residents officially looking for work. During the last month the number of job seekers in the city fell by 138 people.

The City Council explains the slight improvement in employment has been achieved due to the development of trade and service sectors.