Norwegian metalworking company Torgy Mek. Industri has expanded its production to Latvia by investing 500,000 EUR and creating 40 new jobs within 3 years.

Torgy Mek. Industry is a producer of a wide range of pipe clamps for the Norwegian oil and gas sector. The company visited Latvia for the first time in November 2004, and after a sequence of 6 consecutive visits, a decision was made to establish a daughter company Torgy Baltic for the company to operate in Latvia.

One reason for the success of the project was the contribution made by the Latvian business representative in Oslo, Norway, where the company was able to obtain all the preliminary information on the investment climate in Latvia.

Torgy Mek Industry selected the Latvian city of Jelgava, located 45km from Riga, known for its strong metalworking traditions, to set up its first production site by renting 1500 square meters of manufacturing space. While the facilities were being renovated, the welders employed by Torgy Mek Industry were trained at the company’s production plants in Norway.

After its expansion to Latvia, Torgy Mek Industry has been able to become a much more competitive supplier in the global market, reducing its production costs by taking advantage of the local skilled labour found in Latvia.