In September 2026, Czech-based Škoda Group acquired a 36% stake in SIA L-Ekspresis, a Latvian company specialising in railway vehicle maintenance, repair and modernisation. The agreement also gives Škoda Group an option to acquire the remaining 64% by the end of 2028. The financial terms of the transaction have not been disclosed.

The investment is part of Škoda Group’s strategy to expand its long-term service business and strengthen its presence in markets where its vehicles operate. The company aims to establish a railway maintenance and service hub in Riga serving the entire Baltic region.

From vehicle deliveries to long-term partnerships

The acquisition builds on an existing industrial relationship between the two companies. L-Ekspresis has more than 30 years of experience in the railway sector, established technical facilities in Riga and a skilled local workforce. It has also participated in manufacturing activities related to the delivery of new electric trains for Latvia and Estonia.

Škoda Group, meanwhile, has been expanding its presence across the Baltics. Latvia already operates 32 Škoda 16Ev electric train units, while the company has secured a contract for nine battery-powered trains, with an option for seven more. Its regional activities also include electric trains in Estonia and trolleybuses in Tallinn and Vilnius.

By combining Škoda Group’s engineering and technological expertise with L-Ekspresis’s local capabilities, the partnership could improve maintenance efficiency, strengthen customer support and create new opportunities for railway modernisation. Establishing a regional service hub in Riga could also help Škoda Group support its customers throughout the entire lifecycle of their vehicles, rather than focusing primarily on initial deliveries.

A gateway for Czech companies

The investment could have implications beyond the railway industry. For Czech companies, Latvia and the wider Baltic region may offer opportunities to become involved in supply chains linked to transport infrastructure, industrial modernisation and technological development.

Potential areas for cooperation include railway components and spare parts, engineering services, industrial automation, digital maintenance systems, software, cybersecurity and energy-efficient technologies. Czech manufacturers and service providers could explore partnerships with Latvian companies, use established local networks to understand procurement requirements and develop references for projects in neighbouring Baltic markets.

A stronger industrial presence in Latvia could also facilitate cooperation between Czech and Latvian businesses, including joint bids for international contracts. For smaller Czech suppliers, working with an established industrial partner could provide a practical route into a market that might otherwise be difficult to enter independently.

These opportunities are potential outcomes rather than confirmed contracts. Their realisation will depend on future investment decisions, procurement processes, technical requirements and the competitiveness of individual suppliers.

Sources: Škoda Group official website, L-Ekspresis official webiste

Prepared by the team of CzechTrade Baltics