Tongyu Communications -- the first Chinese manufacturing company in Latvia

RIGA — Spring has come to Riga, the capital city of Latvia. A Chinese company here has also earned its spring in business with a pioneer spirit.

Stepping into a Soviet-era industrial complex, where Tongyu Communications is located, several people are busy working in a workshop.

Tongyu, a well-known Chinese manufacturer of antennas, set up a subsidiary in Latvia in 2013, becoming the first Chinese manufacturing enterprise in the Baltic country.

Over three years, Tongyu has gained reputation not only in Latvia, but also in other European countries.

"Tongyu is a manufacturer of high-tech products, and clients in Europe are especially particular about product quality, which is why Tongyu is very strict about its quality standards," said Tongyu Communications' CEO Wang Huiqiu.

On the wall by the testing table, there was a chart depicting the steps of the technological process. A Chinese engineer told us that the testing table is where the assembly of Tongyu antennas begins.

He explained all parts delivered from China have to be tested because they can be damaged during transportation.

The engineer noted that workers are required to strictly follow the steps of the technological process and then record each step of the test to make sure that each part is consistent with the standards.

Graduated from Riga Technical University, local employee Roberts Viksna shared his story working in Tongyu Communications.

"I like the job," said Viksna, who started working here two and a half years ago. He said that engineers from the company's headquarter regularly visit here to provide training on the latest communications and microwave technologies.

Viksna said he learnt a lot from training and gained much experience working here.

After registering in 2013, Tongyu Communication installed its first assembly line here in 2014. In 2016, the company started regular production, making 4,000 antennas annually, Wang said.

The Chinese-capital company currently employs over 10 people, and it makes its products at clients' orders. Antennas, its main product, are sold not only in Latvia, but also in Lithuania, Hungary, France, Finland and Italy.

The company is also working to expand the business to Britain, Russia and Poland, where it has already achieved some progress.

Tongyu Communication implemented the strategy of steady growth from the beginning. Through constant improvement, the company found suitable business model in Europe.

The first stage of operations proved successful, and in 2017 the company plans to make 10,000 antennas, Wang said. "There is a hope to achieve a target of 20,000-30,000 antennas, it would be a big breakthrough for Tongyu."

In Latvia, the company combined its own productive and technological advantages with Latvia's geopolitical and labor force advantages, and created an ideal production and shipping formula which conquered the market, Wang elaborated.

Wang also pointed out a number of factors in favor of establishing a business here: Firstly, Latvia is situated in the very center of the Eurasian continent, close to Europe, Commonwealth of Independent States, Middle Eastern and North African countries, ensuring fast delivery. Secondly, Latvia is an European Union member, which allows for smooth shipping to Europe. Thirdly, labor costs in Latvia are comparatively low, while employees are highly educated and very friendly.