Latvijas Finieris – Assessment of 2014 Results

22. mai, 2015

Latvijas Finieris AS, which is the leading company of the Group, reached the sales of 194.1 million EUR in 2014 (4% increase against 2013), and this is the best sales result in company history.

Being aware of own capabilities and capacity utilisation rate, this year Latvijas Finieris is planning a small increase in exports and service of domestic market in accordance with the market demand.

Last year, Latvijas Finieris subsidiary in Finland acquired a birch plywood factory which was a strategic investment for the Group, expanding production scale and becoming a Baltic Sea Region company.

The second phase of construction has been started at the factory Kohila Vineer near Tallinn in Estonia.  180 new employees will be recruited as a result of project implementation.  Total investments of Latvijas Finieris in Estonia since 2011 will reach 80 million EUR, including this project.

In order to properly and effectively use the available Baltic birch wood resources, a peeled veneer factory project has been started in Kuldiga with a gradual development perspective – initially creating a wood-yard, then ensuring roundwood sorting and processing.

As a Baltic Sea Region company with factories in Latvia, Lithuania, Estonia and Finland, Latvijas Finieris faces a significant challenge of labour cost increase to ensure a motivated and skilful workforce in the longer term.  Average gross income at Latvijas Finieris AS is 1125 EUR per month.  To ensure a competitive pay level in the Nordic region, the company aims to increase compensation by an average of 7% per annum in the coming years.

Creation of a new chemical products factory with an innovative paper impregnation line has been started.  The new line is designed and manufactured by a special order, equipped with the most modern technologies to ensure high environmental performance and improved energy efficiency.  7 million EUR will be invested in the new facility.

The main objective of the Group until 2020 is to implement 280 million EUR investments into development of products and production processes, as well as raising work efficiency and quality, considering increase in compensation levels.  Return on investments in the Latvian and Estonian factories is expected in 2017, as a result of expanding plywood exports from both countries.