Liepaja Industrial Park Development Continues with Site Remediation

The Liepaja Special Economic Zone Authority continues the transformation of the former steelworks “Liepajas metalurgs” industrial site by implementing the project “Development of the Liepaja Industrial Park Area – Phase 2.” The project involves redevelopment and remediation of a historically contaminated industrial site and construction of modern infrastructure required for business operations. The project is being implemented under the European Union Cohesion Policy Program 2021–2027, supporting the transition towards a climate-neutral economy and mitigating the socio-economic impacts associated with this transition in the Kurzeme region.

Uldis Hmieļevskis, the Liepaja SEZ Authority CEO, explains that the development objective is to transform the former “Liepajas metalurgs” site into a modern industrial park, creating space for new business initiatives. Liepaja-based companies are growing and expanding, creating a need for new sites where manufacturing and logistics projects can be developed. The industrial park will provide space for business growth and help attract new investment to Liepaja. Uldis Hmieļevskis emphasizes that it is particularly encouraging to see companies with local capital identifying the Liepaja Industrial Park as a potential location for their manufacturing facilities.

As part of the project, nine heavy fuel oil storage tanks with a total capacity of 60,000 cubic meters will be dismantled, while soil and groundwater remediation will be carried out in the area designated for the construction of one of the newly constructed streets of the Liepaja Industrial Park. Once the site has been remediated, modern utility infrastructure will be installed, including district heating, water supply, wastewater and stormwater drainage networks, two more streets will also be connected into a single integrated road network.

The construction works are being carried out by SIA “A-Land”, under a contract signed on 28 August 2026 with a value of EUR 3.88 million excluding VAT. According to Dainis Kopštāls, Construction Manager at SIA “A-Land”, the project presents a particular challenge for the company, as site remediation must be carried out before the utility infrastructure and road section can be constructed.

“Efficient project planning on the client’s side, combined with the professionalism of our partners, is enabling us to move forward according to schedule.”

Construction supervision is provided by SIA “Firma L4”, design supervision by SIA “BM-Projekts”, while environmental consultancy services are provided by SIA “Ameco”.

One of the most visible elements of the project will be the new roundabout at the intersection of two newly constructed streets. In recognition of the site’s industrial heritage, historic slag trolleys will be placed in the center of the roundabout, symbolically connecting the history of “Liepajas metalurgs” with the site’s new phase of development.

The Liepaja Industrial Park has sustainable thinking embedded in its “genetic code”, with education, innovation and the circular economy clearly defined as its core principles. The site of the former “Liepajas metalurgs” plant is gradually being reintegrated into the city, making it accessible to the public and attractive to investors.

The Liepaja Industrial Park is being developed by the Liepaja SEZ Authority and the Liepaja City Municipality, together with cooperation partners SIA “Liepajas ūdens” and SIA “Liepajas enerģija”, on the site of the former “Liepajas metalurgs” plant. The site borders Lake Liepaja, which is part of the specially protected natural area NATURA 2000. According to the approved development strategy, the aim is to attract more than EUR 275 million in private investment and create at least 1,500 new jobs.

Real FDI magazine has highlighted 10 of the world’s most promising industrial and logistics investment projects, with the Liepaja Industrial Park included among them. In today’s competitive investment environment, locations that can offer more than land alone are increasingly attractive to investors – including modern infrastructure, energy security, logistics connectivity and an ecosystem suited to advanced manufacturing. The projects are in different countries and demonstrate a variety of development models, ranging from large industrial centers in Germany and Spain to emerging logistics hubs in Iceland, Romania, Latvia, the United Kingdom and Mexico.

Background

• In 2018, a Memorandum of Understanding was signed between the Ministry of Economics, the Investment and Development Agency of Latvia (LIAA), SIA “FeLM”, the Liepaja City Council and the LSEZ Authority concerning the development of the former “Liepajas metalurgs” site.
• In 2019, the consolidation of real estate properties within the former “Liepajas metalurgs” site was initiated.
• In 2021, the development program for the former “Liepajas metalurgs” site was approved, and an inter-institutional agreement was concluded with the Liepaja City Council on its implementation.
• In 2022, the local plan for the former “Liepajas metalurgs” site was approved.
• In 2022, the program for the remediation of the former “Liepajas metalurgs” site was developed.
• In 2023, the Liepaja Industrial Park (LIP) Development Strategy 2023-2028 was approved.
• In 2023, several construction designs were developed for infrastructure development works at the site.
• In 2023, a project application was prepared and submitted for the first road construction works within the LIP area, and the Central Finance and Contracting Agency (CFLA) issued a decision approving funding for the works.
• In 2023, a lease agreement was concluded with SIA “Liepajas Steel”, valid until 31 December 2025, for the dismantling and removal of an electric steelmaking furnace.
• In autumn 2024, construction of the first road sections and utility infrastructure was launched, together with the electrification of the entire site.
• In 2025, the disposal of existing industrial buildings was initiated.
• At the end of 2025, road sections of three newly constructed streets were completed, commissioned and opened to public access, together with utility infrastructure, including water supply, wastewater and stormwater drainage, and district heating networks. As part of the project, 3,865 meters of electricity distribution networks and eight new transformer substations were also constructed across extensive sites.
• In September 2026, the CFLA-approved project “Development of the Liepaja Industrial Park Area – Phase 2” was launched. The project includes dismantling of the heavy fuel oil storage facilities, site remediation, and the construction of road into a single integrated road network.