One of Latvia's leading timber industry companies, “Stiga RM”, and the five group companies associated with it* strengthened their positions in both the domestic and international markets in 2024, reaching a consolidated turnover of 97 million euros. The group's profit was 10 million euros, while its EBITDA exceeded 20 million euros, confirming solid profitability and an efficient operating model even in a changing market environment. Last year the group's companies paid 9 million euros in taxes into the state budget and provided work for more than 613 employees in the Kurzeme and Zemgale regions.
2024 is the first reporting period for which a consolidated annual report was prepared at the level of the holding company “Stiga RM Pārvaldība”, reflecting the changes to the group's legal structure that took place at the beginning of last year.
“The past year confirmed how important it is to maintain a strategic view of development even when market dynamics are unpredictable. We used the opportunities offered by previous years as a basis for further investment, and we are seeing the fruits of that approach now, when we are able to operate successfully and profitably in a turbulent environment. This year, too, our priority is purposeful growth and strengthening the company's resilience,” says Andris Ramoliņš, owner and chairman of the board of “Stiga RM”.
Despite the uncertainty in global markets, “Stiga RM” is holding to its long-term goal of being a competitive, technologically advanced and sustainable industry leader. Investment in raising productivity, in innovation and in the development of forest resources are strategic choices that allow the company to respond flexibly to market changes while building a foundation for steady growth in the future.
Investment in development – in Kuldīga, Tukums and Ogre
Last year the group carried out an extensive investment programme worth 37 million euros. Modernisation of the Kuldīga plant continued, with new production premises built, energy-efficient technologies introduced, and production capacity and the product range expanded.
“Throughout the past year and again this year, extensive construction and modernisation work has been under way continuously at the Kuldīga birch plywood mill, delivering an investment programme worth 22 million euros. Yet the production process was not halted at any point – that was a major challenge, and we handled it superbly. Already this year we can see it starting to pay off in output capacity and revenue growth. For that I particularly want to thank the “Stiga RM” team – both our long-serving professionals and the new colleagues who have joined recently. It is precisely their enthusiasm, competence and attitude that have given the company a powerful breakthrough and allowed us to establish a firm position in the premium birch plywood manufacturing segment,” A. Ramoliņš emphasises.
Significant stages have also been completed at the acoustic panel factory being built in Tukums – all the major construction work is finished, and the new factory is due to open as early as the end of this year.
In parallel, the acquisition of the “Norupe” sawmill was completed and work began on a project for a new timber processing plant in Ogre. The development of this facility is the company's first step outside the Kurzeme region. A modern, high-technology birch plywood plant is now taking shape on the site of the former sawmill, forming part of the “Stiga RM” investment programme for this year. The plant will be built over several years, with state co-financing also being attracted.
The forest acquisition strategy – a path towards self-sufficiency
Last year “Stiga RM” actively continued to acquire forest land, taking ownership of approximately 1 000 hectares and increasing the total area of land it manages to more than 12 500 hectares. Investment in this area came to almost 6 million euros. This strategy allows the company to secure a stable supply of raw material and to take on greater responsibility for sustainable forest management.
By developing a complete production cycle and creating high value-added products, “Stiga RM” is convinced that Latvia can become an international example of modern and sustainable forest sector development. Local resources, professional expertise and bold long-term thinking play an essential role in building this ecosystem, complemented by cooperation with the state and the regions.
* The “Stiga RM” group comprises six companies: SIA “Stiga RM”, SIA “Stiga RM Nami”, SIA “Stiga RM Distribution”, SIA “Stiga RM Transports”, SIA “Stiga RM Metāls” and SIA “Stiga RM Mežs”. This announcement brings together information on the combined performance figures of all six group companies. Further information on each company's line of business is available on the company's website: https://stigarm.lv/lv/par-mums/.