Official Opening of Newly Constructed Streets in the Liepaja Industrial Park

Today, 21 November, with a symbolic cutting of a metal rebar and a performance of the song Dzelzsgriezējs (Iron Cutter) by the legendary Liepaja rock star Ainars Virga, the newly constructed streets in the Liepaja Industrial Park—located on the former premises of the Liepajas Metalurgs steel plant—were officially opened. Uldis Hmieļevskis, CEO of the Liepaja SEZ Authority, emphasized that just as in the song by “Līvi,” the Iron Cutter cuts through the old world to open a new chapter in Liepaja’s industrial history and begin its green transformation. “These first newly built streets are only the beginning—the first step in gradually reintegrating the former Liepajas Metalurgs territory into the urban environment and making it publicly accessible. At the same time, it is essential to make it attractive for investors who will establish modern manufacturing companies offering well-paid jobs based on smart technologies and the core principles of the circular economy.”

The concept of creating the Liepaja Industrial Park was formally confirmed in a Letter of Intent signed on 23 August 2018. The document states that the Industrial Park is being developed to ensure an efficient use of the historical territory of Liepajas Metalurgs, to positively contribute to the sustainable economic development of Liepaja, to promote an increase in the number and export capacity of exporting companies, to boost both direct and indirect tax revenues for the state and municipality, and to ensure the rational use of the currently available free electrical capacity in the area. The Letter of Intent was signed by the Ministry of Economics, the Investment and Development Agency of Latvia (LIAA), the Liepaja City Council, the Liepaja SEZ Authority, and SIA FeLM.

On behalf of the Ministry of Economics, the document was signed by Arvils Ašeradens—then Deputy Prime Minister and Minister of Economics, and now Minister of Finance. “Liepaja works smartly, cooperating with entrepreneurs and developing projects in close synergy with the government and the municipality. Liepaja is a success story. Latvia needs strong companies and a place where they can be built and developed, enabling us to attract investment for high value-added economic activity, develop export-oriented businesses, and create new qualified and well-paid jobs. The newly acquired industrial land will boost economic activity not only in Liepaja but will also contribute to Latvia’s overall economic growth.”

The world is changing, industrial technologies are changing, and our attitude toward the environment is changing—and this is not a choice, but a necessity.

Gunārs Ansiņš, Chairman of the Liepaja City Council, stated: “Liepaja is steadily moving towards greener, smarter and more sustainable development. We have significantly reduced our dependence on fossil energy and are restructuring the sector toward modern, environmentally friendly and competitive production. By opening the first new streets in the Liepaja Industrial Park today, we are both literally and symbolically marking the transition from the legacy of heavy metallurgy toward a climate-neutral, smart and high value-added industrial ecosystem. This area will become a place where innovation and green energy merge with manufacturing and export capacity—demonstrating that Liepaja is not only following the European Green Deal but actively shaping it.”

Global economic trends show that Europe must develop manufacturing hubs across various sectors, creating development opportunities for Liepaja as well. Over the next decade, Liepaja aims to develop a green and high-capacity industrial park on the former Liepajas Metalurgs site—an example of efficiency in green manufacturing and the circular economy—creating more than 1,500 new jobs. The world is changing, industrial technologies are changing, and our environmental approach is changing—and this is a necessity.

Uldis Sesks, Chairman of the Board of the Liepaja SEZ, noted: “We take pride in our industrial traditions, yet we now stand at a pivotal moment as we undergo industrial transformation. We are evolving to make industry safer and more environmentally and socially responsible. Sustainable thinking is embedded in the very DNA of the emerging green Liepaja Industrial Park, with clear emphasis on education, innovation, and circular-economy principles. What Liepaja needs today are manufacturing operations that are environmentally and community-friendly, export-capable, and able to attract high-level intellectual resources.”

At the end of 2023, the Liepaja SEZ Authority secured its first investments for the development of the Industrial Park and concluded an agreement with the Central Finance and Contracting Agency for €10 million in funding under the Recovery and Resilience Facility for the implementation of Phase 1 of the project “Development of Infrastructure of the Liepaja Industrial Park.” The project includes construction of 3,865 meters of electrical networks, eight new transformers, and three new street sections with engineering utilities (water supply, sewage, stormwater drainage, and district heating networks). Street sections along Inženieru Street (Engineer Street), Eksporta Street (Export Street) and Dzelzsgriezēja Street (Iron Cutter’s Street”—about 2 km in total—have now been completed. The total value of contracted construction works amounts to €9.23 million. The works were carried out by SIA Aland and SIA CTB.

In parallel to the SEZ project, the municipality implemented the reconstruction of Meldru Street as part of the program “Support for the Development of Public Infrastructure Necessary for Entrepreneurship, Promoting the Transition to a Climate-Neutral Economy.”

By the end of the year, Naglu Street (Nail Street) and Martena Street (Open Heart Street) will also be commissioned, while in 2026, construction of the junction and road connection between Brīvības Street (Freedom Street), Čuguna Street (Cast Iron Street) and Eksporta Street is planned. Savings from current projects will allow the construction of an additional 289-metre section of Martena Street next year. A project application has also been approved under the EU Cohesion Policy Program 2021–2027, which will enable the demolition of fuel-oil tanks next year and the integration of the newly built streets into a unified network.

The Liepaja Industrial Park is being developed by the Liepaja SEZ Authority and the Liepaja City Municipality on the former Liepajas Metalurgs industrial site, bordered by Brīvības Street, Meldru Street, Ezermalas Street, Parka Street and Zemnieku Street. The territory borders the Liepaja Lake NATURA 2000 protected area. The Industrial Park is being developed as a contemporary business environment aimed at attracting technologically advanced and innovative companies that will foster the development of high value-added manufacturing and comply with the principles of the European Green Deal by promoting environmentally friendly and circular-economy-aligned industrialization. In line with the approved strategy, the overall development plan foresees attracting more than €275 million in private investment and creating at least 1,500 jobs.

Background Information

• 2018: A Letter of Intent concerning the development of the former Liepajas Metalurgs site is signed between the Ministry of Economics, LIAA, SIA FeLM, the Liepaja City Council and the Liepaja SEZ Authority.
• 2019: Consolidation of real estate properties begins on the former Liepajas Metalurgs site.
• 2021: The development program for the former steel plant territory is approved and an inter-institutional agreement with the Liepaja City Council is concluded for its implementation.
• 2022: A local plan for the former plant territory is approved.
• 2022: A remediation program for the former industrial territory is developed.
• 2023: The Liepaja Industrial Park Development Strategy 2023–2028 is approved.
• 2023: Several construction designs for infrastructure development are completed.
• 2023: The first project application for street construction within the Industrial Park is submitted and positively assessed.
• 2023: A lease agreement with SIA Liepajas Steel is concluded—effective until 31 December 2025—for the dismantling and removal of the electric arc furnace.
• Autumn 2024: Construction of the first street sections, engineering utilities and full electrification of the territory begins.

2025: The process of disposing of existing industrial buildings commences.