Last year one of Latvia's leading timber industry companies, “Stiga RM”, and five associated group companies* continued their steady growth, closing the year with a consolidated group turnover of almost 95 million euros, which is 12% or 10 million euros more than in 2022. The group companies' consolidated EBIDTA figure reached 30.2 million euros last year, while total profit across the group companies came to 22.2 million euros, giving a net profitability of 23%. With a substantial share of profit channelled into investment in further business development, total investment in development projects last year amounted to 31 million euros. The group companies paid 7.4 million euros in taxes into the state budget and provided 563 jobs in Kuldīga and Tukums municipalities.

“Last year was one of the most successful in the history of “Stiga RM”. A significant rise in plywood sales prices on international markets during the first half of the year drove a considerable increase in revenue and generated excess profit, almost all of which we directed towards further development. Being well aware that such favourable market conditions are not a long-term phenomenon, it is important for us to keep strengthening our resilience and our ability to adapt to varying market conditions. That would not be possible without investment in the manufacture of high value-added products, in renewing equipment, machinery and the vehicle fleet, and in expanding operations, all of which allows us to weather market fluctuations successfully and to be more competitive on a global scale,” emphasises Andris Ramoliņš, owner and chairman of the board of “Stiga RM”.

Carrying out both previously started and new development projects, the total volume of investment made by the group companies in 2023 reached 31 million euros, half as much again as in 2022, when investment amounted to 20.2 million euros. “This is a substantial contribution to the company's successful long-term development, strengthening our ability to absorb less favourable market conditions and to deliver good performance in future as well, including during any downturn, because the investments made involve minimal borrowed capital,” says A. Ramoliņš.

This year too the company will focus on creating high-quality timber products and expanding its operations, while strengthening its independence from raw material availability and supporting the education of new specialists.

Creating high added value

In pursuit of its strategic goal of offering high-quality, high value-added timber products made in Latvia to the whole world, “Stiga RM” continued to expand and modernise the Kuldīga birch plywood factory with new, energy-efficient and environmentally friendly equipment. Likewise, as construction of the new wood wool acoustic panel factory (WWCB) in Tukums continued, a significant stage of the building work was completed during the past year — laying the foundations and assembling the metal structures of a production building of almost 15 thousand square metres, creating access roads, providing water and electricity supplies, laying asphalt in the timber yard and erecting the masonry frame for the office building and boiler house.

This year the company publicly announced plans to develop another wood processing plant. Over the coming years, a new, modern, technologically advanced plant producing high-quality engineered timber products will be built in Ogre on the site of the existing “Norupe” sawmill, thereby promoting the development of Latvia's wood processing industry, its competitiveness and growth in export volumes.

Sustainable management of forest areas

To strengthen its independence from raw material availability so that it can continue developing the manufacture of high-quality products, “Stiga RM” acquired forest properties covering almost 1400 hectares during 2023. The company invested just under 13 million euros in acquiring forest properties last year. In total, at the end of the year the company owned more than 11 000 hectares. Most of this is forest land, where the company carries out the full forest management cycle based on the principles of sustainable forest management.

Support for education and science

With the rapid development of technology, the wood processing industry has an ever greater need for sustainable change and knowledgeable specialists. “Stiga RM” has therefore made supporting education and science one of its priorities this year. At the start of the year it began working with the Latvia University of Life Sciences and Technologies (LBTU) and Ventspils Technical School, collaborating with teaching staff on questions of educational content, delivering work-based learning, providing placement opportunities, and taking part in organising various events related to the learning process and to the industry.

* The “Stiga RM” group of companies 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 website: https://stigarm.lv/lv/par-mums/.