An Assessment of the Activities of Latvijas Finieris in 2023
07.06.2024
Latvijas Finieris Group’s revenue in 2023 reached 404.8 million euros, an increase of 15% compared to the previous year, while EBITDA grew by 40% to 78 million euros. In terms of volume, the majority (80.5%) of birch plywood products were delivered to industrial customers in the European Economic Area, with a focus on industries where birch plywood is an essential material due to its unique physical and mechanical properties.
“The war waged by Russia in Ukraine continues to negatively impact economic growth around the world, but especially in Europe. In our fight for fair competition, we have been involved in the European Commission’s investigation into anti-dumping duty circumvention, strongly advocating against the entry of sanctioned plywood products into the European market. We are pleased that our customers appreciate our responsible attitude and principles of operation with their loyalty,”
acknowledges Jānis Ciems, CEO of Latvijas Finieris.
In 2023, Latvijas Finieris Group employed an average of 2,398 people per month across Europe and the rest of the world. Of these, 2,061 worked in the group’s Latvian companies, where the average annual labour taxes (social security contributions and personal income tax) per employee were 13,294 euros. In total, the group paid 42.11 million euros in taxes last year, of which 30.11 million euros was paid in Latvia.
It’s worth noting that since the start of the war in Ukraine, Latvijas Finieris Group, in cooperation with partners in Latvia, Lithuania, Estonia, and Finland, has provided continuous support of various kinds to the people of Ukraine. As of April 2024, the total value of these donations has reached 6.6 million euros.
“We are living in a time of rapid and fundamental change. Events in regional and global geopolitics are forcing us to take a firm stand and be an integral part of Western democracy. Meanwhile, the European Green Deal demonstrates a clear shared commitment to gradually replace fossil fuels with renewable energy sources in almost all sectors. Therefore, we are confident about the direction of our future development – the Baltic and Nordic countries have a crucial role to play in being at the forefront of the bio-economy,”
emphasises Jānis Ciems.
Last year, Latvijas Finieris investments reached a total of 58.3 million euros. Among the most significant investment projects are the third stage of development of the VEREMS RSEZ SIA birch plywood mill in Rēzekne and the start of construction of a new synthetic resin plant in Riga, which is being built within the framework of the international consortium VIOBOND. The goal of this project is to increase the use of renewable resources in the composition of resins used for plywood bonding. Another strategically important project is the new Product Research Laboratory, opened in the autumn of 2023, which concentrates the group’s testing equipment capacity in one place. This laboratory makes it possible to work even more effectively with customers in various industries to develop new properties of birch plywood, paving the way for the wider replacement of fossil fuels with wood-based solutions. Whereas the investment in the new veneer mill in Kuldīga is a testament to the group’s commitment to technological development in veneer production, opening up the possibility of experimenting with veneer logs of thinner diameter and different wood species.
“With the goal of promoting sustainable forestry practices, we have also increased our investment in acquiring forest and agricultural land that is not currently being used. We believe that decision-makers in Latvia have a responsibility to create an effective land use policy that prioritises long-term adaptation to climate change over short-term gains.
emphasises Jānis Ciems.
In 2023, the group’s landholdings in Latvia increased by 819 hectares. In total, the company owned 11,506 hectares of land at the end of 2023, including 9,839 hectares of forest land.
Latvijas Finieris plans to invest over 70 million euros in its development this year. A strategically important project is the 5 million euro development of the “Zābaki” tree nursery, which will create a unique wooden building complex. Thanks to new seedling storage technology, it will provide an opportunity for forestry development, ensuring that customers receive seedlings at their desired time in the spring period, while the knowledge gained in the construction and operation of the buildings will promote the wider use of wood in construction.
The group will also continue to digitalise various processes extensively this year, gradually entrusting more and more tasks, especially in production, to artificial intelligence tools. For example, in the automatic recognition and analysis of veneer and plywood defects, or in the sorting of finished products.
More information about the group’s activities in the period from 1 January 2023 to 31 December 2023 can be found in the Latvijas Finieris Sustainability Report. The purpose of the report is to provide information about the significant aspects of sustainability of the group, their impact, and the measures that the company takes to balance the impact of its actions on people, nature and society.
