The landscape of European industrial logistics is witnessing a significant shift as major manufacturers move operations closer to their production bases to combat rising transport costs and carbon footprints. A primary example of this trend is the recent expansion of SIA “Dinex Latvia,” which has officially relocated its central spare parts warehouse from Denmark to a new 10,000-square-metre facility in Jelgava. This move, part of a broader strategic overhaul, has already contributed to a €6 million increase in turnover for 2025, with an additional €8 million growth projected for 2026.
The relocation represents a departure from the traditional model of maintaining central hubs in Scandinavia or Western Europe while manufacturing in the Baltics. By consolidating logistics within the “NP Jelgavas Biznesa Parks” on Aviācijas Street, Dinex—a global specialist in exhaust and emission control systems—is effectively streamlining its supply chain. The proximity of the new warehouse to the company’s primary manufacturing plant in Raubēni (Jelgava region) allows for near-instantaneous goods flow and more agile management of international orders.
Scaling Capacity for Global Demand
The new facility is not merely a storage site but a sophisticated logistics hub designed to support Dinex’s aggressive expansion into markets as far-reaching as Brazil, East Asia, and Australia. With 99% of the company’s output destined for export, the efficiency of this hub is critical to its international competitiveness. The warehouse currently features 7,400 pallet spaces, with the infrastructure already in place to expand this capacity to 9,000 as demand for Euro 6 and Euro 7 compliant emission systems grows.
| Project Metric | Specification / Impact |
|---|---|
| Facility Size | 10,000 m2 |
| Current Storage Capacity | 7,400 pallet spaces |
| Future Capacity Potential | 9,000 pallet spaces |
| 2025 Turnover Increase | €6 Million |
| 2026 Projected Growth | €8 Million |
| Export Percentage | 99% of total sales |
| Strategic Relocations | Denmark (Spare parts), Germany (OEM parts) |
Navigating the Shift to Euro 7 Standards
The expansion comes at a pivotal time for the automotive and heavy machinery industries. As global regulations tighten, the demand for complex after-treatment systems—including ceramic soot filters and specialized catalysts—is surging. Dinex’s decision to move its OEM (Original Equipment Manufacturer) central warehouse from Germany to Latvia in 2025 further underscores the country’s growing reputation as a high-tech manufacturing corridor rather than just a low-cost production site.
Ina Riharde-Jundze, General Manager of SIA “Dinex Latvia,” noted that the optimization of the logistics network is a direct response to the need for greater delivery flexibility and cost reduction. By shortening the distance between production and distribution, the company is also making measurable strides in reducing CO2 emissions associated with heavy-duty transport, aligning with the broader sustainability goals of the global transport sector.
Regional Economic Impact and Infrastructure
The development of the new warehouse was completed in collaboration with “Nordic Partners,” the developers behind the NP Jelgavas Biznesa Parks. The ability to customize a 10,000 m2 space within a tight timeframe highlights the maturity of the industrial real estate market in Jelgava, a city that has historically served as an industrial heartland for Latvia.
For the local economy, the expansion secures Jelgava’s position as a vital node in the global supply chain for heavy transport, buses, and industrial machinery. Beyond storage, the new facility functions as a customer service center, aiming to improve reaction speeds for clients across the globe. As Dinex pursues its vision of becoming the world’s leading manufacturer of emission systems, its Latvian operations have transitioned from a satellite production site to the strategic nerve center of the entire group.
Original reporting by: jelgava
Source: Jelgavas valstspilsētas pašvaldība
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