New large-scale timber processing facility seeks 10 million euros in financing
Stiga RM's EUR 86 Million Investment Boosts Sustainable Wood Processing in Latvia
Stiga RM, one of the largest companies in Latvia's timber sector, is set to revolutionise the wood processing industry with a significant investment in a new production plant. The project, worth approximately EUR 86 million, will focus on producing high-quality engineered panels and is planned to be executed in two stages through the end of 2028.
The investment promotes innovation and the development of sustainable production in the Latvian wood processing industry. The plant, located on the former Norupe sawmill site in Kuldīga, will produce birch plywood from high-quality Latvian birch wood. This initiative aims to enhance Latvia's position in the engineered wood panel market, supporting sustainably managed forestry and adding value to local timber by producing advanced wood products.
Andris Ramoliņš, owner of Stiga RM, stated that the granting of state co-funding is very important for the implementation of the large and complex project. The programme is jointly implemented by the Latvian Investment and Development Agency (LIAA) and the joint-stock company Development Finance Institution Altum (ALTUM).
The project's specific application status for public funds is not detailed in the available information. However, given the scale and sector, public support or funding applications are typically pursued for such large investments in the Nordic-Baltic timber industry.
The goals of the project include establishing a high-capacity production facility for engineered wood panels, upgrading technology and production processes in line with modern sustainable practices, boosting regional economic development and creating skilled jobs, and strengthening Latvia’s role in the global wood products market by offering higher-value engineered panels.
Stiga RM's expansion beyond its home Kurzeme region begins with the plant in Ogre, marking a significant step forward for the company. The new plant in Kuldīga will be the third wood processing plant in Latvia. Ieva Jāgere, Director of LIAA, expressed pleasure about the project due to it materializing specific projects in the large investment programme.
The plant in Kuldīga exports its products to more than 50 countries worldwide, with the largest sales markets being Germany, the UK, and the USA. The timber sector accounts for around 20% of all goods exports in Latvia.
Meanwhile, the world's most advanced production facility of Wood Wool Cement Board (WWCB) is getting ready to start operations in Tukums, further boosting Latvia's wood processing capabilities. This investment strategy reflects Stiga RM’s approach to leveraging Latvia’s forestry resources with an emphasis on sustainability and innovation in wood processing.
The Large Investment Project Support Programme is aimed at projects of large companies above EUR 10 million that create high value-added products. This investment by Stiga RM consolidates the competitiveness of the Latvian wood processing industry, positioning it as a key player in the global wood products market.
- Stiga RM's investment in a new production plant in Kuldīga, Kurzeme, will not only contribute to the wood processing industry but also to the finance sector, with the EUR 86 million project potentially seeking public funds through programs like those offered by the Latvian Investment and Development Agency (LIAA) and Development Finance Institution Altum (ALTUM).
- This investment by Stiga RM, one of the largest companies in Latvia's timber sector, will not only strengthen Latvia’s role in the global wood products market by offering higher-value engineered panels but also expand its export reach, with the Kuldīga plant expected to sell products to more than 50 countries, including major markets like Germany, the UK, and the USA.
