Our task is to create the conditions so that Latvia is a country that produces expensive goods, not just raw materials, emphasises Andris Ramoliņš, owner of “Stiga RM”, one of the leading homegrown companies in the timber sector. In the interview, he also explains his vision for climate issues, the situation in the labour market, and other topical developments in the forest and timber industries.

In the vicinity of the Tukums municipality industrial park, where construction work recently began on “Stiga RM”'s new wood fibre acoustic board factory, is the Tukums airfield, which was relatively recently discussed as a back-up for Riga Airport. Have these plans vanished into thin air?

I very much hope that more active operations will one day begin in this area, but its owners have reputation issues, which presents a certain risk that cannot be justified in the current geopolitical circumstances. If an investor with a good reputation appears who will purchase both the airfield and the airport building, further development of the area is certainly expected, as sufficiently large areas of land are available there – several hundred hectares.

I was not prepared to wait until someone finally started managing this plot of land more actively, so last year several entrepreneurs from the Tukums municipality got together and founded a business association for the development of the Tukums municipality industrial park. We are actively cooperating with the municipal council, trying to improve the park's infrastructure – the roads are already paved, but for now, there is a lack of a centralised water supply and sewerage system, which is currently being worked on. We invite entrepreneurs to come to the Tukums municipal council and submit applications regarding their desire to develop production facilities in this area. We will be very happy about the development of the municipality!

“Stiga RM” and its owner are proud of the successful and consistent expansion of their forest properties. What are the specific goals?

Every year, we plan to purchase a certain amount of forest area. Last year's target was 900 ha, this year we increased the plan by 300 ha. I think next year the target will be a few hundred hectares higher again. Although we have already met our plan for this year – there are still a few months left until the end of the year, but we have already managed to purchase about 1300 ha of forest and we have no plans to stop.

Our observations show that there are forest owners in Kurzeme who could face financial difficulties this year, and selling their forest properties would help them resolve these. We are interested in such deals and invite every forest owner to evaluate the offers available on the market and not to rely solely on buyers' promises, but to look for the truly most advantageous solution from a reliable cooperation partner.

We will certainly increase the forest areas owned by the company in the future, also because it happens that other players in the sector purchase property, harvest it and sell it on to foreign owners. In my opinion, that is not right; I want Latvian land to remain with Latvian owners who will grow the volume of the property and increase its value.

This year, we seem to have been the first Latvian capital company to start buying back larger forest areas from foreign owners, purchasing 505 ha that previously belonged to a company managed by Finnish investors. We are a good example of how a manufacturing timber company, which processes and exports, starts “from the forest” – from soil preparation, planting, and maintenance. My colleagues and I at the company really like the philosophy: “Our beginning is the forest; we add value to it by creating high-value and quality products.”

Has the spruce bark beetle also visited your forest properties?

Unfortunately, it has visited, but the areas affected are not large and we have already carried out sanitary felling. Currently, we are still assessing the aftermath of the August storm, because it also hit our areas. With the help of drones, we are inspecting the properties to get a clear and detailed understanding of the situation; we are guided by meteorological station maps and are looking at what has happened and how much.

There was a time when people in the sector mentioned Latgale more often in relation to the forest property market. It was a pleasant surprise that not everything in Kurzeme has been bought or sold yet.

The market is unfortunately not as active as I would like – we buy almost all the properties that come to our attention or that people offer us themselves.

I must admit that regarding property purchases, we currently have no advertising. It is a matter of reputation – we always offer a fair payment rather than trying to buy properties for half-price or 20% of their true value; we always do what we have promised and we do not let people down, which is why forest owners trust us. Furthermore, for any property we purchase, we can pay on the day the contract is signed – this is a matter of trust and business ethics.

Are you talking about forests of different ages, or about clear-felled areas that can be reforested as one pleases?

Speaking of clear-felled areas, we have purchased a few, but they must certainly be adjacent to existing properties. I will add that we like to tend, plant, and grow forests ourselves, rather than fix someone else's work.

Could your future plans for forest properties also be linked to the slowly developing carbon market in Latvia?

This is definitely one of the directions that will develop over the next 10 years. We must think seriously about climate issues, and nature clearly shows us this – we recently experienced a storm, large hailstones, severe thunderstorms – we see that the climate is indeed changing. We cannot change what happened in the past, but it is possible to act now, immediately, and in the future. That is our philosophy, and for “Stiga RM” as a CO₂-sequestering company through its properties, it is very important to reduce our carbon footprint. Also, in the upcoming factory in the Tukums municipality, we will produce sustainable, high-quality, and high-added-value products, rather than exporting roundwood. We are CO₂-neutral; we sequester carbon in the long term.

Speaking of climate issues, how can a practically minded person who is busy with business encourage others not to exaggerate these activities? In Latvia, they haven't really got further than slogans. What should be done practically and in everyday life?

We can return to the main topic of our conversation – the forest. By carefully growing and harvesting trees, and creating high-added-value and sustainable products from them, we sequester CO₂ in the long term. By growing a forest with an increment of 7-8 m³ or more per hectare annually, we sequester one tonne of CO₂ for every cubic metre. Economic activity significantly contributes to CO₂ sequestration and oxygen production – this is a well-known process that we were taught even at school. Effective management is the key to rapid growth for Latvia. What do we need? Proper planned forest management and the production of high-value and sustainable products – that way, we will not only leave no CO₂ footprint, but we will be carbon sequesters. This is Latvia's and Latvians' “know-how” – an opportunity for growth, development, production – we have been given everything.

What else is needed? Machine operators who work with computers and control robots. We have chosen this path for the upcoming Tukums wood fibre acoustic board factory, because the entire production process will be automated, with a person controlling the robots. When completed, the factory will be the most modern in the world. The level of automation we are planning and envisioning has not yet been experienced or implemented by the manufacturers of such equipment. This will be a great challenge and, at the same time, a success. The factory will be ready in 2025, but we are publicly talking about 2026, so that the whole process is clear and precise down to the smallest detail.

If such factories and such equipment have not existed before, is there already anyone in the company who is slowly learning and acquiring the necessary skills?

Right now, together with the equipment manufacturers, we are continuing to work on the equipment and its implementation. Practical training will take place later right here on site, at the factory.

So the equipment will be brought in, installed, and the learning process will begin on site.

Exactly! Our engineers, together with our cooperation partners, as we laugh, will “wake up” the equipment, with the operators of this equipment present, who will begin to get to know them and learn how to work with them.

Is there any idea of what knowledge the operators of never-before-seen equipment should have?

It is significant that the knowledge of a programmer or a timber worker will not be the main requirement, but the diligence and attention of the specialist will certainly matter, in order to be able to handle fine equipment and enter commands in a timely manner, ensuring the robot executes them precisely. Overall, the equipment will work by itself, but it must certainly be supervised, because small deviations are always possible. A robot, for example, might not understand why something has slipped, so a knowledgeable specialist must be nearby to notice and correct the error in time.

We already have similar experience – the level of robotisation at the Kuldīga factory is very high. Women also work very successfully at the factory, dealing with work duties excellently because the work is by no means physically heavy. The heavy work is done by the robot; the operator has a supervisory role, giving commands as needed on what should be done and how.

It would be appropriate to remember here that when saying “I work in a factory” in the 21st century, one should not think of the 19th or 20th centuries, when production work was often hellishly exhausting and hard.

Precisely! Today, work in a factory has nothing to do with heavy physical exertion or a low level of education. Many educated and very ambitious young specialists work for us, who have the opportunity to develop their careers by delving into production processes and moving on to management positions. We strongly support the entry of young specialists, and it is a real pleasure that more and more smart and knowledgeable people want to work for us. For example, on the day of our conversation, we have also hired several engineers.

Remembering the laying of the time capsule for future generations in the foundations of the upcoming acoustic board factory, the powerful team of the company mentioned in the speeches seemed very important. In the political environment, it is often the lack of a skilled team that creates problems for a political force, a politician, or a minister. How is a strong team formed in private business?

I am very happy and grateful to the “Stiga RM” team – every colleague is not only an excellent expert in their field but also a true like-minded person and a reliable ally on whom I can rely on the path to growth. All the people who have joined the “Stiga RM” management team at some point somehow become fascinated or even infected with the idea that we must continue to develop, progress, and invest. We are doing this all the time – continuously. For example, currently, several objects are being built simultaneously, and without a strong, passionate team, this would simply not be possible.

If we were simply earning money and investing what we earned in a fancy property in Spain, I doubt our employees would support or understand that. Our approach is different; we also try to support the communities and society where we operate, both in Kuldīga and in the Tukums municipality. For example, we have installed children's playgrounds, the Pampāļi track was created, and other initiatives important to the residents. With this, we thank society and also explain that without employees and without a team, we are nothing.

We hear talk in the world about a crisis. In our company, there is no crisis; we do not feel it. The management team shifts gears and looks for other outlets – if something cannot be sold in India, we look at whether the product might be needed in America or Africa. We want to use the crisis as a stepping stone for growth.

The people on our management team have a very similar view of the situation – we want to invest in and develop industry in Latvia, to bring knowledge and best practice here. For example, 60-70% of the equipment used in the Kuldīga plywood factory was manufactured by us ourselves in the Tukums metalworking factory, transported to Kuldīga, and assembled there. The work takes place under the supervision of foreign specialists; in this way, we have brought both experience and knowledge to Latvia. Each subsequent stage of development, based on this knowledge and our own experience, gives us the ability to react quickly and adequately in crisis situations.

Of course, it is not the case that everything always goes “according to plan”; almost every day there is some smaller or larger challenge, but the consequences depend on our attitude and actions. For example, last year on 10 August, we experienced a fire at the Kuldīga factory – the workshop burned down with all the equipment. We restored the workshop's operations in exactly four months; on 10 December, we resumed work with new equipment and in a new workshop. I think we are champions in resolving this situation; furthermore, during this time we did not fire a single employee, everyone received their salary, and we relocated part of the production elsewhere – both to neighbouring countries and within Latvia. We also worked on weekends, and I must admit that the workload was very high for everyone, but no one gave up and they fulfilled their duties with honour. As a result, our clients and cooperation partners got the ordered products, perhaps with a slight time delay. At the end of the year, our cooperation partners visited us, looked around, and wondered – where is the burned-out workshop? They simply could not believe that we were standing and talking in that very workshop, because there was no trace of the fire left there. This is an excellent proof of solidarity and the result of team work – together we achieved the almost impossible, of which I am very proud! In my opinion, people like creating miracles; when it has happened and they have participated in it, it is easier to believe in it.

So, the politically sensitive issue of labour shortages has not actually affected the company.

That cannot quite be said, because in recent years the company has been developing rapidly and we hire new employees almost every month; furthermore, we are looking for high-calibre specialists, of whom there are not many in Latvia. Therefore, the labour question is very topical; we have interesting work to offer, official competitive remuneration, and growth opportunities, so for now, we cannot complain about a shortage of specialists.

Neither in logging, nor in forest management, nor in the transport sector do we have a shortage of labour. In conversations with applicants, we conclude that people are thinking more and more about their social guarantees, which is very important.

It is not clear to me why the responsible state institutions do not talk about this loudly and regularly enough, namely, that by receiving money in an envelope, you are robbing yourself, your children, your country, and your future... God forbid you break your leg! What will happen? What will your social welfare be? This is exactly the issue and the perspective I would like to hear from state institutions. Today, €100 more in an envelope will result in €200 less in your pension. It is important to talk not about envelope wages, but to explain to everyone individually the personal and state-wide benefits of a legal remuneration system. Explain how important it is for everyone that companies pay these taxes. Consequently, in such a discussion, we arrive at company competition and, accordingly, at efficiency.

The long change of government has now ultimately resulted in a new government; what is a businessman's view of this...

Surnames do not have much meaning. The meaning and weight lie in the team and the work that follows the respective surname. I consider myself quite apolitical; the only thing that is important to me is that the political force is not pro-Russian. On this issue, there are no compromises.

The state must take care of infrastructure, because the state creates the conditions that entrepreneurs use. Our task, in turn, is to create conditions so that we are not a producer of raw materials, but of expensive goods. From grain to flour, for example, is a big step, not to mention that we then produce bread or pasta. We can talk about the same regarding wood and peat – we do not export peat, but substrate so that someone in the Middle East or Spain can grow tomatoes. That is how I see it, and that is what the government's plan should be.

Create the conditions – entrepreneurs will do the rest! For example, currently, it seems that our financial institutions choose their client, rather than competing with each other so that the client goes to them. A bank's portfolio must necessarily include the possibility of cooperating with higher-risk clients who want to start a business. I have experienced this myself; namely, when I needed loans the most, they would not give them to me. What was the solution? I used the opportunity to receive a loan as a private individual, giving a meadow I owned as collateral; as a businessman, they wouldn't give me anything.

It is also very important that the state ensures equal conditions for entrepreneurs. When that happens, perhaps someone will go bankrupt because they will not be able to work under such conditions, but those who remain will give the state more rapid economic growth, because they will not have to compete with the shadow economy sector. This, in my opinion, is very important, because in our country in 2023, there is an unforgivably large share of the shadow economy.

Due to the influence of various external circumstances (C19, war), very unexpected problems have appeared in Latvia. For example, the language issue, which during the years of the Awakening along with independence was one of the most important. What has caused the important things to be forgotten in 30 years?

This can be explained in two words – it is political prostitution that has flirted with the might of the eastern neighbour for a long time, feasting on the money from various mineral resources of the eastern neighbour. What happened? A series of important issues were declared taboo (unmentionable) and were not talked about. Now we are encountering problems postponed for 30 years in this style, when the language and history have not been taught in schools. This is a matter of honour and respect. We are capable of many things, we speak English, but we forget that this is Latvia. If someone calls us and says “Alo!”, we often switch to Russian. In such cases, I invite them to speak Latvian. You don't want to? Then let's not speak!

What activities are taking place in the Latvian Forest Industry Federation?

The main task of the Latvian Forest Industry Federation at the moment is to actively oppose the implementation of the extreme Green Deal. In my opinion, this is and will continue to be a priority issue. A clear balance is needed – Latvia cannot be turned into a reserve from the perspective of agriculture, building materials, or anything else. This is very important, because we are talking about democracy – we must determine what we will do in our own land and country. Previously, for 50 years, the rules were dictated in Moscow; now similar decisions come from Brussels. One must understand different things – one situation is in the Netherlands, where 17 million inhabitants live on 1/3 of Latvia's territory, another is in Latvia with fewer than 2 million inhabitants. These are two in-com-par-a-ble magnitudes. We must fight for Latvia to be a flourishing and producing land, not a reserve for some tycoon in France or elsewhere. I will repeat – this is very important! Often, a feeling arises that we are being offered a deal – we will produce everything in Europe and bring it to you. Wait, and what will we be here? A holiday home? That way we will lose our independence even further. We can produce, we can be first in many fields; we only need to do it, we need more ambitious goals and we must strive for them.

Before the start of the theatre season, news appeared that “Stiga RM” would support the new Dailes Theatre acting course.

Latvian culture plays an important role in strengthening national identity, a sense of belonging, and solidarity – the more we each invest in promoting culture and the values important to us, the stronger and more flourishing our country and society will be. That is why Juris Žagars' idea to create a new study course and train top-tier professionals in the theatre and musical genre really appealed to me. I am very happy to be present at the moment of development of new Latvian talents, supporting continuity and the passing of knowledge to the new generation, thereby helping young talents find their voice and stake their place in the history of Latvian theatre.

I will be very proud if in five years these young people, whose life on stage is yet to begin, stand before an audience; then I will be able to think – there is a part of my work here too. This is what will remain for our nation and will bring light. A bright side and rest are very necessary for all of us...
Photographs from “Stiga RM” and zemeunvalsts.lv have been used