Latvian wood processing company Stiga RM has unveiled its ambitious plan to invest 22.4 million euros in the modernization of its production processes and acquisition of new equipment. The investment aims to significantly enhance the efficiency and production volume of its birch plywood plant located in KuldÄŤga, while promoting product quality and sustainability principles. This strategic initiative will create at least 38 new job opportunities for highly skilled engineering professionals.

Andris Ramoliņš, the owner of Stiga RM, highlights the company's commitment to producing high-quality products and adding value to Latvia's abundant forest resources. The investment will drive development and modernization efforts, enabling continuous improvement and automation of production processes, as well as fostering better working conditions for employees.

Ramoliņš expresses his satisfaction with the opportunity to receive state support for the company's future endeavors, acknowledging it as a vote of confidence and motivation to continue manufacturing high-value products. He further emphasizes Stiga RM's role in advancing the Latvian wood processing industry, boosting export volumes, and contributing to the nation's economy.

The comprehensive modernization project is estimated to cost over 22.4 million euros. Stiga RM will contribute 10.8 million euros from its own resources, while an additional 6.5 million euros will be provided by the Latvian branch of OP Corporate Bank plc. Moreover, the development finance institution Altum will contribute 5.145 million euros under the Large Investment Loan with Capital Discount program. As per the terms of the loan agreement, the principal amount will be partially or fully canceled upon successful project completion and fulfillment of contractual criteria.

The development project, initiated earlier this year, is scheduled to run until the end of 2024. The introduction of new technological processes is expected to significantly boost productivity at the birch plywood plant and enhance product quality. Stiga RM aims to strengthen its competitiveness, increase production and export volumes, while also prioritizing energy-efficient and resource-saving production methods in line with sustainability principles.

The state loan program facilitating this initiative is administered by the Investment and Development Agency of Latvia (LIAA), which assesses project eligibility for support, in collaboration with Altum, responsible for evaluating the financial and viability aspects. Reinis Bērziņš, Chairman of the Board at Altum, highlights the program's aim to foster projects crucial for the Latvian economy. The financing will enable Stiga RM's growth, empowering the company to produce high-value and top-quality products in larger volumes through a modern and sustainable production facility.

Altum is currently in an active phase of evaluating projects submitted under the program, with decisions reached or near completion on projects totaling around 60 million euros. Bērziņš adds that Altum also provides loans with a capital discount in four European Union Recovery Fund programs targeting energy efficiency, digitalization, and affordable rental housing construction.

Kaspars RoĹžkalns, Director of LIAA, underscores the program's potential in facilitating sector strengthening and enhancing operational efficiency for entrepreneurs. He anticipates that the program will contribute to the overall growth of goods exports, which reached an impressive 30% in 2022.

RoĹžkalns further emphasizes that the support program presents an opportunity to modernize existing work and promote vital projects for Latvia's economic development. The program extends its support to companies specializing in sectors such as bioeconomy, biomedicine, photonics, smart energy, and ICT, fostering collaboration between companies and scientific institutions to drive innovation and create novel solutions.

With Stiga RM's substantial investment and commitment to progress, the Latvian wood processing industry is poised for a sustainable.