Latvia has completed at least \u20ac189.4 million of investment in birch veneer and plywood production between 2024 and 2026, while further mills are being developed in Kuld\u012bga and Ogre. What began with new peeling technology and major equipment orders in 2024 has grown into a country-wide expansion covering veneer, large-format plywood, lamination and further processing.<\/p>\n
The current wave has been building for three years. Latvijas Finieris commissioned a \u20ac16 million veneer plant in Kuld\u012bga in June 2024. In the same year, AmberBirch ordered a \u20ac20 million automated production package from Raute for a much larger expansion in J\u0113kabpils municipality. Stiga RM completed a \u20ac22.4 million modernisation of its Kuld\u012bga plywood mill in 2025. The two largest openings followed in 2026: the \u20ac100 million VEREMS expansion near R\u0113zekne in April and AmberBirch's \u20ac51 million development in September.<\/p>\n
The four completed projects represent \u20ac189.4 million. Two further Stiga RM factories are under development: a plywood further-processing mill in Kuld\u012bga and a large-format and non-standard plywood mill in Ogre. Latvijas Finieris is also assessing a new wood-based panel plant in Latgale. Budgets for these projects have not been published, so the eventual investment total will be higher.<\/p>\n
The important change is not simply the amount of new machinery. Latvia is expanding at several stages of the production chain at once. New peeling technology can take smaller birch logs. Automated grading allows veneer to be separated more precisely by quality and end use. New presses and finishing equipment move production toward large panels, laminated surfaces and components made for particular industrial applications.<\/p>\n
How the investment cycle developed<\/strong><\/p>\n 2024 was the year in which the new capacity programme became visible.<\/strong> Latvijas Finieris opened Kuld\u012bgas fabrika with a hybrid peeling line designed for smaller-diameter and lower-grade birch. The plant widened the raw-material base rather than simply adding another conventional peeling line. In February, Raute announced AmberBirch's \u20ac20 million order for log handling, peeling, drying, grading, analysers and production software. Equipment deliveries were scheduled between late 2024 and early 2025.<\/p>\n In 2025, investment moved from procurement toward operation.<\/strong> Stiga RM completed the two-year modernisation of its Kuld\u012bga plywood mill, having reached the plant's new maximum production level in December 2024. AmberBirch's expansion moved through equipment delivery and construction, while work continued on the larger projects that would be formally opened the following year. By this stage the Latvian cycle was no longer confined to one producer or one region.<\/p>\n In 2026, the largest projects reached the market.<\/strong> VEREMS opened its expanded large-format plywood operation in April. AmberBirch formally inaugurated its enlarged veneer factory in September, with stated capacity of up to 90,000 m\u00b3 a year. Stiga RM also confirmed that it was developing a further-processing mill in Kuld\u012bga and a large-format and non-standard plywood factory in Ogre.<\/p>\n The sequence matters commercially. Kuld\u012bga first widened the pool of birch suitable for peeling. Stiga RM then added efficiency and more laminated output. VEREMS and AmberBirch brought the largest production assets on stream in 2026. The market entering 2027 is therefore dealing with the combined effect of investments made over several years, not a single season of expansion.<\/p>\n The market left by Russia and Belarus<\/strong><\/p>\n The investment cycle is closely connected to the loss of Russian and Belarusian supply. Before 2022, the two countries were among Europe's main sources of birch plywood and veneer. Russian mills in particular supplied large volumes at prices that EU producers found difficult to match. European demand continued after sanctions prohibited imports of Russian and Belarusian wood products, but buyers had fewer established suppliers available.<\/p>\n Some of the missing volume returned through third-country trade, increasing scrutiny of declared origin and possible sanctions circumvention. For European buyers, customs exposure and proof of harvest origin became part of the purchasing decision alongside price and panel quality. This gave legally sourced European production a stronger position, especially in applications where customers require stable specifications and documented supply chains.<\/p>\n Latvia entered this period with birch resources, experienced veneer and plywood producers, Baltic ports and established export channels. Latvijas Finieris already had an international sales network, Stiga RM combined wood supply with plywood production, and AmberBirch could sell veneer to several downstream industries. The country did not need to build a birch-processing industry from the ground up; it could enlarge an existing one.<\/p>\n The new projects are not designed simply to replace Russian plywood cubic metre for cubic metre. Latvian producers are putting money into smaller-log recovery, automated grading, large-format panels, laminated surfaces and further processing. These products compete on dimensions, consistency, origin and delivery reliability as well as price. Russian and Belarusian supply created the opening, but utilisation of the new Latvian capacity will still depend on construction, furniture, transport and industrial demand.<\/p>\n Latvia's main birch veneer and plywood investments<\/strong><\/p>\n Investment is spreading across the production chain<\/strong><\/p>\n VEREMS is the largest of the completed projects. The \u20ac100 million expansion is also the biggest single-factory investment made by Latvijas Finieris and one of the largest industrial projects completed in Latvia in recent years. The company has not released a post-expansion capacity figure, but expects the development to generate more than \u20ac30 million in additional exports each year as output increases.<\/p>\n The mill is geared toward large-format and specialised plywood rather than a simple increase in standard panel production. Large panels, coated surfaces and machined components are sold into transport, flooring, construction, packaging and industrial equipment. In those markets, panel dimensions, surface treatment and machining are often as important as the cubic volume leaving the press.<\/p>\n VEREMS also has the advantage of an established route to market. Latvijas Finieris sells more than 90% of its Riga Wood birch plywood outside Latvia, serving customers in 47 countries through sales companies in 12 markets. New production can therefore enter an existing distribution network instead of depending on the relatively small Latvian market.<\/p>\n The group's earlier \u20ac16 million investment in Kuld\u012bga tackles a different problem: how to recover veneer from logs that conventional peeling lines struggle to use economically. The plant's hybrid peeling machine combines spindle and spindleless technology and can peel a log down to a core of 25 mm. It accepts smaller-diameter and lower-quality birch, including a new C-grade log assortment purchased by the company.<\/p>\n Latvijas Finieris estimates that, at current harvesting levels, the wider log specification could redirect another 300,000 m\u00b3 of Latvian birch toward plywood production each year. That figure describes the potential raw-material pool, not the veneer output of the Kuld\u012bga plant. For forest owners, it creates another market for birch from thinning and mixed-quality stands. For pulpwood buyers, it places a higher-value competitor farther down the assortment range.<\/p>\n These projects sit inside a Latvijas Finieris investment programme exceeding \u20ac400 million between 2023 and 2027. The programme covers the group's operations in Latvia, Estonia, Lithuania and Finland and is intended to lift annual turnover from \u20ac414 million to at least \u20ac500 million within three to four years. The Latvian developments are the largest visible part of a regional expansion that also includes the forthcoming enlargement of Kohila Vineer in Estonia.<\/p>\n Stiga RM builds a second Latvian plywood platform<\/strong><\/p>\n Stiga RM is following its own route from forest ownership toward finished industrial products. The company spent \u20ac22.4 million over two years modernising its birch plywood mill in Kuld\u012bga. New equipment and production processes lifted efficiency, widened the product range and increased the share of laminated plywood. The programme created 38 skilled jobs, with \u20ac5.145 million allocated through Latvia's large-investment support scheme.<\/p>\n The mill reached its new maximum production level in December 2024, although Stiga RM has not published the corresponding volume in cubic metres. The next stage is already taking shape. A further-processing mill is being developed in Kuld\u012bga, while work is under way on a factory in Ogre for large-format and non-standard plywood intended for export customers.<\/p>\n The direction is clear even without a published capacity figure. Stiga RM is moving toward products that require lamination, special dimensions and additional processing after pressing. This reduces its exposure to standard plywood prices and puts more of the customer's work inside the Latvian factory. It also brings the company into closer competition with the specialised range produced by Latvijas Finieris.<\/p>\n Stiga RM's expansion extends beyond birch plywood. In 2026 it opened a \u20ac34 million wood-wool cement board factory in Tukums under the Sonablock brand. The plant has capacity of 4.5 million m\u00b2 a year and plans to export 98% of its production. It is not included in the \u20ac189.4 million birch plywood total, but it belongs to the same shift toward finished, exportable building products rather than primary wood processing.<\/p>\n AmberBirch increases the supply of merchant veneer<\/strong><\/p>\n AmberBirch adds an independent source of industrial birch veneer to a market dominated by integrated plywood producers. Its \u20ac51 million expansion in Krustpils parish increased production space to more than 15,000 m\u00b2 and took stated annual capacity to as much as 90,000 m\u00b3. The workforce grew by 40 to approximately 130.<\/p>\n The plant supplies plywood, furniture, parquet, packaging and other wood-product manufacturers in the Baltic states, Poland and other export markets. This gives the project a different commercial position from a veneer line built solely to feed one company's own presses. The additional volume can be sold across several downstream industries and can also move between markets as plywood demand changes.<\/p>\n Raute supplied a \u20ac20 million technology package covering log handling, peeling, drying, grading, visual and moisture analysis, services and production-management software. The supplier rated the addition at 60,000 m\u00b3 a year. AmberBirch's figure of up to 90,000 m\u00b3 refers to the expanded plant as a whole.<\/p>\n The new line can peel veneer at speeds of up to 350 metres per minute, compared with roughly 90 metres per minute on the older equipment, and can process a wider range of log diameters. The factory now produces around 50 standard sizes and close to 100 dimensions. Faster peeling is only part of the gain: automated grading and a wider log intake allow the company to sort more accurately for premium, large-format and industrial veneer orders.<\/p>\n The Baltic and Finnish comparison<\/strong><\/p>\n Latvia is not the only northern European market adding birch plywood capacity. Latvijas Finieris is investing more than \u20ac70 million in Kohila Vineer in Estonia, including \u20ac20 million scheduled for 2026. Construction began in 2026 and the new production line is due to enter operation in early 2028. The company has not published the eventual capacity, but says the project will expand birch plywood production without increasing its consumption of locally sourced Estonian logs. Peeled raw material is expected to arrive from other countries in the region.<\/p>\n In Finland, Koskisen is carrying out a plywood investment programme at J\u00e4rvel\u00e4 through the end of 2027. The first phase, focused on veneer production, was valued at approximately \u20ac12 million. The full programme is intended to increase plywood capacity from 65,000 to 85,000 m\u00b3 a year while improving yield, internal logistics, automation and product quality.<\/p>\n The projects differ in scope. Estonia has one large mill expansion under construction and Finland a programme with a defined 20,000 m\u00b3 capacity increase. Latvia has several companies investing simultaneously in peeling, plywood pressing, lamination, large formats and further processing.<\/p>\n More competition for birch logs and veneer<\/strong><\/p>\n The first market effect will be felt in procurement. AmberBirch needs more peeling logs for its enlarged veneer operation. VEREMS and Stiga RM need veneer for expanded plywood and processing programmes. The Kuld\u012bga peeling technology brings smaller and lower-grade birch into the same industrial chain.<\/p>\n Competition is therefore moving beyond the traditional premium veneer log. Birch that might previously have been exported, chipped or sold as pulpwood can now be tested against plywood recovery values. This should improve returns for some forest owners, particularly from thinning and mixed stands, but will increase pressure on buyers accustomed to sourcing lower birch grades at pulpwood prices.<\/p>\n Regional trade will absorb part of the adjustment. Logs and veneer already move between Latvia, Estonia and Lithuania, while Latvijas Finieris expects peeled material from neighbouring countries to support its Kohila expansion. Transport costs limit the economical distance for lower-grade roundwood, but dried or selected veneer can travel farther. As new lines ramp up, the balance between domestic logs, imported veneer and internal group transfers will become more important.<\/p>\n The production increase will not arrive all at once. VEREMS is raising output gradually, AmberBirch must build utilisation on its new line, and the next Stiga RM factories are still under development. This gives the raw-material market time to adjust, though it also means rated capacity will run ahead of actual production during the first operating years.<\/p>\n What to expect in 2027<\/strong><\/p>\n Latvia enters 2027 with a larger and more varied birch-processing base than it had three years earlier. The immediate question is not whether the new equipment can produce more, but how quickly mills choose to run it. European construction remains subdued, furniture demand is uneven and industrial customers are still careful with inventories. The increase in actual output is therefore likely to be slower than the increase in installed capacity.<\/p>\n Latvijas Finieris has the greatest flexibility. It can move veneer and plywood between several plants, use an established sales network and direct production toward large-format, coated or machined panels when standard grades come under pressure. Its \u20ac400 million regional programme also connects the Latvian mills with operations in Estonia, Lithuania and Finland. Stiga RM is building a similar, though smaller, route toward laminated, non-standard and further-processed products, while AmberBirch will supply a wider group of independent plywood, furniture, parquet and packaging customers.<\/p>\n This mix should prevent every new cubic metre from entering the same market. Merchant veneer, standard plywood and processed panels have different customers and purchasing cycles. The greatest pricing pressure would arise if several mills raised output quickly while downstream orders remained weak. In that case, standard veneer and unprocessed plywood would be more exposed than large-format, laminated or customer-specific products.<\/p>\n Raw-material availability will remain the other limit. New peeling technology allows mills to use smaller and lower-grade birch, improving recovery from the existing harvest. At the same time, it brings plywood producers into closer competition with pulpwood buyers and extends procurement into assortments that previously had fewer industrial uses. Imports and regional veneer trade can cover part of the requirement, but Estonia and Finland are adding capacity as well.<\/p>\n During 2027, the clearest signals will come from operating rates, birch log prices and the product mix leaving the new lines. A steady increase in utilisation without a build-up of standard material would indicate that the additional capacity is finding customers. Slower ramp-ups would not be unusual for projects of this size, particularly while European construction and furniture markets remain soft.<\/p>","protected":false},"excerpt":{"rendered":" Latvia has completed at least \u20ac189.4 million of investment in birch veneer and plywood production between 2024 and 2026, while further mills are being developed in Kuld\u012bga and Ogre. What began with new peeling technology and major equipment orders in … Continue reading \n\n
\n \nCompany and site<\/th>\n Investment<\/th>\n Project<\/th>\n Status<\/th>\n<\/tr>\n<\/thead>\n \n Latvijas Finieris, VEREMS<\/strong>
\nR\u0113zekne municipality<\/td>\n\u20ac100m<\/strong><\/td>\n Large-format birch plywood; capacity not published. More than \u20ac30 million in additional annual exports targeted.<\/td>\n Opened April 2026<\/td>\n<\/tr>\n \n AmberBirch<\/strong>
\nJ\u0113kabpils municipality<\/td>\n\u20ac51m<\/strong><\/td>\n Birch veneer; stated capacity up to 90,000 m\u00b3\/year, including a 60,000 m\u00b3\/year technology addition supplied by Raute.<\/td>\n Opened September 2026<\/td>\n<\/tr>\n \n Stiga RM<\/strong>
\nKuld\u012bga<\/td>\n\u20ac22.4m<\/strong><\/td>\n Modernisation of birch plywood production, with more laminated plywood and a wider product range.<\/td>\n Completed June 2025<\/td>\n<\/tr>\n \n Latvijas Finieris, Kuld\u012bgas fabrika<\/strong>
\nKuld\u012bga<\/td>\n\u20ac16m<\/strong><\/td>\n Veneer production using small-diameter and lower-grade birch; plant capacity not published.<\/td>\n Opened June 2024<\/td>\n<\/tr>\n \n Stiga RM<\/strong>
\nKuld\u012bga and Ogre<\/td>\nNot published<\/td>\n Further processing in Kuld\u012bga; large-format and non-standard plywood in Ogre.<\/td>\n Under development<\/td>\n<\/tr>\n \n Latvijas Finieris<\/strong>
\nLatgale<\/td>\nNot published<\/td>\n Possible new wood-based panel plant; product and capacity not announced.<\/td>\n Under assessment<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n\n
\n \nProject<\/th>\n Published investment<\/th>\n Capacity information<\/th>\n Timing<\/th>\n<\/tr>\n<\/thead>\n \n VEREMS, Latvia<\/strong><\/td>\n \u20ac100m<\/td>\n Not published<\/td>\n Opened 2026<\/td>\n<\/tr>\n \n AmberBirch, Latvia<\/strong><\/td>\n \u20ac51m<\/td>\n Up to 90,000 m\u00b3\/year total stated capacity<\/td>\n Opened 2026<\/td>\n<\/tr>\n \n Stiga RM Kuld\u012bga, Latvia<\/strong><\/td>\n \u20ac22.4m<\/td>\n Not published<\/td>\n Completed 2025<\/td>\n<\/tr>\n \n Kohila Vineer, Estonia<\/strong><\/td>\n More than \u20ac70m<\/td>\n Not published<\/td>\n New line due in early 2028<\/td>\n<\/tr>\n \n Koskisen J\u00e4rvel\u00e4, Finland<\/strong><\/td>\n \u20ac12m first phase<\/td>\n 65,000 to 85,000 m\u00b3\/year<\/td>\n Programme through 2027<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n