RIGA, Latvia
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August 8, 2022
(press release)
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The management of Latvijas Finieris has decided to launch an expansion project of RSEZ SIA Verems, Latvijas Finieris Group, in Rezekne district. The mill's existing birch plywood production capacity will be doubled, high added value products will be developed and approximately 70 workplaces will be created. The expected amount of investment exceeds 67 million euros and is considered to be the largest investment of private capital in the Latgale region in recent years. The project will be implemented by the end of 2024, and it includes a significant expansion of the production premises of 16,500 m2, symbolically continuing the practice of Latvijas Finieris to build wooden industrial buildings that started in Rezekne more than 15 years ago. As a result, the production buildings of RSEZ SIA Verems with more than 2.8 hectares "under the roof" will become the largest wooden industrial building in Latvia. Evaluating the sustainability of the project, it is also supported by the state. On July 12, the approval was received for 10 million euros in financing in the loan program "Investment loans for large and medium-size companies with a capital discount for the promotion of competitiveness" implemented by the Latvian Investment and Development Agency and Development Financial Institution Altum. Discussions are currently underway with financial cooperation partners about the conditions for attracting the remaining funds. "The state support gives us confidence in the right moment for the implementation of the project, the first preparatory works started already in 2018," admits Jānis Ciems, Chairman of the Executive Board of Latvijas Finieris. "It is important to note that the development of Verems goes along with the VIOBOND international project worth 35 million euros launched a year ago under the leadership of Latvijas Finieris, which also received the support of the EU’s research and innovation funding programme "Horizon 2020". As part of this, a new resin production plant is planned to be built. In resin composition, a significant part of the fossil raw materials will be replaced by lignin, a natural glue obtained from wood. We sell such products in a limited amount already, but the new production facility will be able to provide more environmentally friendly resins for the entire Latvijas Finieris production. This will significantly reduce the CO2 footprint of plywood and provide significant competitive advantages to the Group's customers." To increase the production capacity of RSEZ SIA Verems to 80,000 m3 of birch plywood per year, part of the necessary wood resources will be supplied as peeled veneers from the Group’s mill in Lithuania. At the same time, Chairman of the Supervisory Board of RSEZ SIA Verems, Jānis Staris emphasizes that the project is an important signal for every landowner in the Latgale region - demand for birch logs and stable long-term relations are guaranteed. In addition to the existing range of birch plywood products, which is known worldwide under the Riga Wood brand, after the implementation of the project, Verems will also start producing plywood in a new, 6-feet format. It will be particularly suitable for the van segment of the automotive industry, which is currently developing rapidly. "Small vans are easier to adapt to work with electric motors, so they are especially suitable for urban environment. By supplying environmentally friendly plywood parts, we create a complex view of solving sustainability issues together with our customers," explains Jānis Staris.
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