It is unclear why Ragn-Sells, the largest waste recycling company in Sweden, has established a Latvian subsidiary since Latvia’s SIA SIA Ragn-Sells, wholly owned by the Swedish concern, has not completed a year of work in Latvia at a profit.
In addition, in public purchases, the company often offers dumping prices, thus distorting the market, writes the portal of the largest Latvian newspaper la.lv.

SIA Ragn-Sells in Latvia has been operating for 16 years, but for the whole period, not one year has been completed with a profit. The largest losses were in 2007, when they exceeded one million euros and amounted to 1.09 million euros.

Significant losses in more than 700 thousand euros were recorded in both 2006 and 2012, when they respectively amounted to 710 454 euros and 792 059 euros. Last year, the company’s losses reached 209,215 euros.

The enterprise takes an active part in public procurement of garbage disposal. This year SIA Ragn-Sells received the right to export hazardous wastes from the Faculty of Veterinary Medicine of the Latvian Agricultural Institute, household waste VSAC Rīga, the right to provide services for economic activities with garbage in Latvian places of detention, the right to take out the garbage SIA Rīgas nami, the right to maintenance of hazardous waste in SIA Cēsu klīnika, storage of domestic waste and services for their removal for VSIA Šampētera nams, etc. The amount of contracts in these purchases is about 30 thousand euros.

Meanwhile, the victory of Ragn-Sells, which the company won in the Marupe region, was contested by the other bidders, as the company offered biological waste to residents for one cent per cubic meter, while the remaining bidders had a suggested price ranging between 5 and 7 euros per cubic meter.

It is possible that Ragn-Sells was absolutely sure that no one in Marupe would want to also sort biological waste – leftover food, grass, leaves and other biomass, so, to win the purchase and reap laurels, offered a ridiculous price.

The demand for the export of biological waste in public procurement is very rare, so it is suspected that this purchase was specially prepared for Ragn-Sells.

When the complaint commission became interested in where Ragn-Sells plans to transport biological waste, the company indicated Zaļā Mārupe, which, according to the data of the State Environmental Protection Service, does not have the right to take biological waste from households.

Ragn-Sells also offered a price that was 20% lower than that of other bidders in the procurement tender for transporting waste from trans-shipment stations in the Primorsky region, thus offering a price below the cost price.

If the enterprise offers services below the cost price, it means that it avoids paying taxes.