The management of “Latvijas Finieris” has decided to begin a major expansion project for the group's subsidiary, RSEZ SIA “Verems”, in the Rēzekne municipality. The project will double the factory’s current birch plywood production capacity, develop high-value-added products, and create jobs for approximately 70 people. The projected investment exceeds 67 million euros, marking it as the largest private capital investment in the Latgale region in recent years.
The project is scheduled for completion by the end of 2024 and includes a significant expansion of production facilities covering 16,500 m2. This continues the practice “Latvijas Finieris” began over 15 years ago, specifically in Rēzekne, of constructing industrial buildings using timber structures. Once finished, the RSEZ SIA “Verems” production buildings, with over 2.8 hectares “under one roof”, will become the largest timber industrial structure in Latvia.
Recognising the project's sustainability, the state is also providing support; on 12 July, confirmation was received for 10 million euros in funding under the loan programme for large and medium-sized enterprises aimed at promoting competitiveness, which is implemented by the Investment and Development Agency of Latvia and AS “Attīstības finanšu institūcija Altum”. Negotiations are currently underway with financial partners regarding the terms for securing the remaining funds.
“State support provides firm confidence that this is the right moment to implement the project, for which we began the initial preparatory work back in 2018,” admits Jānis Ciems, Chairman of the Board of “Latvijas Finieris”. “It is important to note that the development of “Verems” goes hand in hand with an international project worth 35 million euros launched by the “Latvijas Finieris” management a year ago, VIOBOND, which has also received support from the European Commission’s Horizon 2020 research and innovation investment programme. As part of this, a new resin plant for plywood bonding is to be built at the group’s industrial hub in Bolderāja. In these resins, a significant portion of fossil raw materials will be replaced by lignin – a natural adhesive derived from wood. We are already selling such products in limited quantities, but the new plant will be able to supply environmentally friendly resins for the entirety of “Latvijas Finieris” production. This will significantly reduce the CO2 footprint of our plywood and provide our clients with substantial competitive advantages.”
To increase the production capacity of RSEZ SIA “Verems” to 80,000 m3 of finished birch plywood products per year, some of the required wood resources will be supplied in the form of peeled veneer from the group’s factory in Lithuania. At the same time, Jānis Staris, Chairman of the Council of RSEZ SIA “Verems”, emphasises that the project is an important signal to every landowner in the Latgale region—demand for birch resources and stable, long-term relationships are guaranteed.
In addition to the existing range of birch plywood products known globally under the “Riga Wood” brand, once the project is complete, “Verems” will also begin producing a new 6-foot format plywood. This will be particularly suited to the rapidly developing small commercial vehicle segment of the automotive industry. “Small commercial vehicles are easier to adapt for electric motors, making them especially suitable for urban environments. By providing environmentally friendly plywood components, we and our clients are taking a comprehensive approach to solving sustainability issues,” explains Jānis Staris.