In 1958 the Communist Party and the government of the Soviet Union took a decision about the rapid development of the chemical industry. As the centre of the chemical industry was chosen Olaine situated on a halfway between Riga and Jelgava. Here already had been functioning the peat factory of Olaine since 1939 and there had been developed a small worker’s settlement. The glue factory moved from Riga to Olaine. In 1963 there was started large construction work and big chemical enterprises set up, such as the factory of chemical reagents of Olaine, chemical-pharmaceutical plant and the plastics processing plant, which processes thermoplastic and thermo reactive plastic materials. The pant of reagents „Biolar” produced biochemical preparations, but „Olainfarm” produced medications.