Latvian birch plywood producer Latvijas Finieris is preparing one of the country's largest industrial investments in recent years, with plans to build a new \u20ac300 million wood processing facility in the Latgale region. The project is expected to strengthen Latvia's manufacturing base while highlighting the importance of transport infrastructure for future industrial expansion.<\/p>\n
The investment plans were discussed during a meeting of Latvia's Coordination Council for Large and Strategically Important Investment Projects, where government officials outlined the next steps needed to move the project forward.<\/p>\n
Prime Minister Andris Kulbergs confirmed that Latvijas Finieris intends to develop a new production facility in Latgale, although he stopped short of disclosing the investment value. Economy Minister Viktors Valainis later stated that the project is expected to require around \u20ac300 million, making it one of the largest manufacturing investments currently under consideration in Latvia.<\/p>\n
Although Valainis initially avoided identifying the investor, citing ongoing discussions with the Latvian Investment and Development Agency (LIAA), the Prime Minister had already confirmed that the project involves Latvijas Finieris, one of Europe's leading birch plywood manufacturers.<\/p>\n
Infrastructure seen as the decisive factor<\/strong><\/p>\n Government officials stressed that the investment depends not only on the factory itself but also on improving the region's transport infrastructure.<\/p>\n According to Valainis, efficient freight connections are essential if large-scale manufacturing projects are to become viable in eastern Latvia. Better logistics would improve the movement of raw materials and finished products while making the region more attractive for future industrial development.<\/p>\n A key element of the project is railway access.<\/p>\n Representatives of the national railway operator, Latvijas dzelzce\u013c\u0161, told the coordination council they will prepare a proposal within two weeks to provide the planned facility with the required rail connections and competitive freight tariffs.<\/p>\n The government believes the railway improvements could serve not only this investment but also future industrial projects across the region.<\/p>\n Construction could begin with the first phase this year<\/strong><\/p>\n Valainis said the objective is to launch the first phase of construction before the end of the year, provided that infrastructure planning progresses as expected.<\/p>\n The project forms part of a broader government strategy aimed at attracting high-value manufacturing investments, strengthening exports and encouraging industrial development outside Latvia's capital region.<\/p>\n During the same meeting, the coordination council also reviewed proposals to introduce targeted tax support for strategic investment projects and to establish a new capital fund through Altum to improve financing opportunities for major industrial developments.<\/p>\n Major player in Europe's birch plywood industry<\/strong><\/p>\n Latvijas Finieris is among Europe's best-known producers of birch plywood, supplying products for transport, construction, industrial applications and furniture manufacturing.<\/p>\n The group reported \u20ac413.8 million in consolidated revenue in 2025, a modest increase from the previous year, while net profit declined to \u20ac51.9 million. The parent company generated \u20ac419.6 million in revenue and \u20ac47.6 million in profit.<\/p>\n Founded in 1992, the company operates an integrated production network across Latvia and owns several subsidiaries involved in forestry, plywood manufacturing, logistics and wood processing.<\/p>\n If completed, the planned Latgale investment would significantly expand the company's production footprint while reinforcing Latvia's position as one of Europe's leading producers of value-added birch plywood products.<\/p>","protected":false},"excerpt":{"rendered":" Latvian birch plywood producer Latvijas Finieris is preparing one of the country’s largest industrial investments in recent years, with plans to build a new \u20ac300 million wood processing facility in the Latgale region. The project is expected to strengthen Latvia’s … Continue reading