New egg production plant could create 200 jobs

A Ukrainian-owned egg production company and a Nordic energy company say they have plans to open a modern egg production plant in Latvia which would involve a 100-million-euro investment creating up to 200 new jobs.

Ovostar Union Group company GALLUSMAN and Nordic energy company ADVEN are the partners in the project. GALLUSMAN is part of the Ukrainian Ovostar Union Group of Companies (2011) which is among the five largest producers of egg products in Europe.

"Currently, there are several potential locations reviewed for the plant project in Latvia, the main ones of which are in Ogre and Krustpils minicipalities. The final decison on the project location will be adopted after finalisation of the environmental impact assessment and receiving of the technical regulations on the planned activity from the environmental protection authorities," a spokesperson for the project told LSM.   

Environmental impact assessments are taking place, which are expected to be completed by the end of the year. Construction works are planned to begin in 2021.

It is planned that there will be up to 6 million laying hens places in the new plant with production capacity of up to 2 billion eggs per year. Soil fertilizer will also be produced as a by-product, with facilities for drying and pelletising of fresh manure. In 2019, there were about 413 million laying hen places in EU egg production plants.

"The export potential of Latvian egg producers will be significantly improved, creating opportunities for all local egg producers to conquer new markets, to fill store shelves of the largest European retailers and to supply industrial food manufacturers," it was claimed. 

"The project will have a favorable impact on the Latvian economy and will create business development opportunities for many Latvian companies - grain growers and suppliers, packaging producers, transport and other services providers. In addition, the new plant will also create a large number of new working places which has a positive effect on the economic activity, particularly in the rural areas, as availability of new, well paid working places reduces the outflow of rural population to cities or other countries," the companies said.

The new plant is expected to export up to 90% of all its production. From 2015, Latvia-based company Ovostar Europe, a sister company of GALLUSMAN, maintains and develops the cooperation of Ovostar Union partners in the EU and will take care of export sales. Ovostar’s target is also to expand in the new markets in Europe and the Middle East to mention.

GALLUSMAN has signed a letter of intent with energy supplier ADVEN to find energy and infrastructure solutions for the new egg production plant, but a final agreement is subject to approval and the results of the environmental impact assessment.

Esko Aho, the Chairman of the Board of ADVEN, and Finland's Prime Minister from 1991-95 said: "The Project of this scale is significant not only for Latvia, but for the whole Northern Europe region. ADVEN is proud to be part of it, as this will give positive contribution to the Latvian economy and increase its
competitiveness.”

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