Latvia will strengthen its manufacturing capacity by investing in regional industrial parks
Latvia, the gem of the Baltics, is making significant strides to enhance its manufacturing capacity through substantial investments in developing regional industrial parks. This initiative supports the nation’s long-term objectives of stimulating economic growth, diversifying its industrial sector, and fostering sustainable development throughout its regions.
In recent years, the demand for industrial space has grown substantially, primarily driven by local companies looking to expand their operations. The 2023 real estate report by “Colliers International” highlighted this trend, noting that logistics companies accounted for 50% of the demand, followed closely by manufacturers and retailers.
In response to increasing demand, Latvia has launched a series of targeted investments through the Recovery and Resilience Facility plan. A key initiative within this framework is investment line 3.1.1.3.i, titled “Investments in Public Infrastructure for Business Development in Industrial Parks and Territories in Regions.” The program is designed to develop industrial parks outside the Riga planning region, aiming to reduce regional inequalities, attract skilled labor, and boost productivity.
This initiative targets municipalities and businesses and offers critical support for developing nationally significant industrial parks. By improving public infrastructure, such as access roads, utilities, and production facilities, these investments create a more favorable environment for companies seeking to expand or establish operations in Latvia’s regional areas.
Key projects and regional development initiatives
The Central Finance and Contracts Agency (CFLA) plays a pivotal role in overseeing the implementation of the Recovery Fund (AF) program, which has already allocated over €77 million of the available €80 million to significant projects to strengthen industrial infrastructure across Latvia’s regions. The approved projects include Liepaja Special Economic Zone, the Daugavpils Industrial Park ALTOP Valmiera Industrial Park, Zemgale Industrial Park in Jelgava, and Ventspils Industrial Park.
The Daugavpils Industrial Park ALTOP – Eastern Latvia Smart Technology and Research Centre – is set to catalyze economic growth in the Latgale region, offering a business environment with excellent logistics. Tailored for companies in smart technologies, the park boasts over 11,000 m² of energy-efficient, A-class building space across three blocks. These modern facilities are designed to support up to 150 production employees and 90 administrative staff, with ample parking, including dedicated spaces for people with special needs and electric vehicle charging stations. Entrepreneurs will also benefit from support through the Latgale Special Economic Zone (SEZ) and access to highly qualified labor. ALTOP is poised to play a pivotal role in positioning Eastern Latvia as a hub for innovation and industrial development.
In a strategically advantageous location, Valmiera Industrial Park offers an exceptional opportunity for industrial enterprises to attract local and international companies. Covering 57.55 hectares, the park is set for rapid industrial growth, supported by the European Recovery Fund, which will deliver key infrastructure within two years. Businesses here will benefit from direct public railway access, robust electricity connections (starting with 15 MW by December 2025 and expanding to 78 MW by February 2027), and full access to essential utilities such as water, sewerage, and stormwater systems. The park will also feature illuminated, spacious parking areas for trucks and light vehicles, designed for long-term use with high load-bearing capacities. Its well-maintained, fenced area offers professional management and easy access to regional roads and public transport. Furthermore, a 3.1 km private broad-gauge railway network will connect the park to Valmiera railway station, offering efficient freight movement through dedicated loading and unloading tracks. With its expansive industrial yard and excellent logistics, Valmiera Industrial Park is an ideal location for businesses seeking growth, connectivity, and modern infrastructure.
Ventspils offers a well-developed industrial cluster with over 500 ha of land for industrial production, equipped with essential utilities and infrastructure. The city has strong transport links, including the TEN-T network, and provides personalized support for investors. Ventspils Industrial Park is a national project focused on green and digital technologies. It includes a 392 ha Green Energy Area for solar and Power-to-X projects, a 45 ha Green Tech Area for hydrogen and e-fuel technologies, and a 28 ha High Tech Area for future development. Priority industries for the park include bioeconomy, biomedicine, smart energy, ICT, and more. Investors can rent land lots (2-5 ha) with expansion options or tailor-made premises, benefiting from Ventspils’ tax incentives, which include reductions in Corporate Income Tax to 4% and Real Estate Tax to 0.3%. This offers significant savings for companies in the Ventspils Special Economic Zone.
Liepāja municipality is advancing sustainable, smart industrialisation through the Liepāja Industrial Park (LIP), a project of national significance. Designed to attract strategic investors in smart specialisation industries, LIP promotes a cluster approach among regional companies. Spanning 120 ha, the park, in partnership with the Liepāja Special Economic Zone (LSEZ), offers access to key transport networks, energy resources, and utilities. LSEZ also provides opportunities for industrial construction via Right of Superficies Agreements. Investors can acquire existing buildings and land for future development. LIP’s strategic location and infrastructure enhance Kurzeme’s logistics and competitiveness, with planned investments in roads and utilities at the former Liepājas Metalurgs site. The park aims to support regional economic growth, create high-value jobs, and foster Latvia’s transition to sustainable, innovative industry.
Jelgava is an important industrial city in Latvia, traditionally strong in manufacturing sectors like food processing, woodworking, metalworking, and plastics. To drive economic transformation towards higher-value industries, the city is developing the nationally significant Zemgale Industrial Park (ZIP). ZIP focuses on smart specialisation areas such as bioeconomy, smart energy, ICT, and engineering systems. Supported by EU funds, Jelgava has improved infrastructure in industrial areas, attracting private investment and revitalizing former industrial sites. Businesses can also collaborate with the Latvia University of Life Sciences and Technologies on research aligned with ZIP’s focus on innovation.
A Vision for the Future
These projects are more than infrastructure—they represent the heartbeat of Latvia’s industrial transformation. With a focus on attracting investment, boosting local economies, and fostering innovation, Latvia is positioning itself as a leader in green and digital industries. Continued investments will be the key to sustaining this progress, ensuring that Latvia remains competitive on the global stage.
