Luminor bank continues to support the development of forestry company SIA “Meža Cikls”, granting additional financing of €4 million for the purchase of new machinery, working capital and an increased credit limit, providing the company with the resources it needs for further growth on the domestic and export markets.
“Forestry and the timber industry are among Latvia's most important export sectors, and in recent years they have faced substantial market shifts – price and demand fluctuations, the impact of geopolitical events, and changing economic conditions. In this environment, long-term growth is delivered by companies able to adapt flexibly to market conditions, develop their operational capabilities and seize new growth opportunities. SIA “Meža Cikls” is a company with a clear development vision – to purposefully strengthen its technical base and professional team and to expand its activity in export markets. We are pleased to continue our cooperation with the company and to provide financing that will help it carry out its next steps in development,” says Ilze Zoltnere, Head of the Corporate Department at Luminor bank.
Under the leasing finance, SIA “Meža Cikls” will expand its machinery fleet with a forwarder and two new harvesters, allowing it to carry out logging entirely with its own equipment. The increase in the credit line and factoring facility, meanwhile, provides working capital for buying and reselling cutting rights and timber on the domestic, Baltic and EU markets, as well as for developing exports to the Asian market and for sustainable forestry development, including forest regeneration and growing forest assets.
SIA “Meža Cikls” management stresses that since it began operating, it has worked purposefully to become a trusted, full-service partner in forestry. Even amid shifting market conditions, the management team's priority is to remain flexible, keep developing and seize new opportunities, while strengthening its position both at home and internationally. Despite competing with the sector's long-established leaders, the company has expanded its team with highly qualified industry specialists and experienced machine operators, taking headcount to 56. In cooperation with Luminor since 2023, SIA “Meža Cikls” has substantially built up its machinery fleet, securing financing for the purchase of more than 20 pieces of equipment and vehicles. The additional financing marks a significant next step in the company's development, allowing it to continue investing not only in machinery but also to secure the working capital it needs and increase its scale of operations, including developing exports to European and Asian markets, where the team has already gained its first experience.
In recent years Latvia's forestry sector has been through sharp swings driven by inflation, the war and rising interest rates. In 2025, however, the sector showed a moderate recovery and roundwood prices stabilised. Experts forecast cautious growth continuing in 2026, and in such conditions companies' success hinges on precise inventory management and the ability to maintain stable cash flow, which is directly supported by securing additional financial instruments.
About SIA “Meža Cikls”
SIA “Meža Cikls” is a forestry company founded in 2020 that provides full-cycle forest management and logging services. The company's activities cover various stages of forest management – site preparation, tree planting, young stand tending, agrotechnical tending, tree protection, harvesting, and timber transport. The company has offices in Daugavpils and Sigulda, as well as a technical base and timber storage yard in Sigulda.