It is the largest investment in the establishment of a single production facility in Latgale, as well as the largest development project in the history of Latvijas Finieris. The expansion of VEREMS mill is important for the national economy as a whole, as it will provide additional exports of more than EUR 30 million annually, creating innovative bio-economy products. The mill is also an example of a sustainable approach to construction, as it is the largest industrial building in the Baltics to use wood on such a large scale, given the use of natural wood in construction.

Jānis Ciems, Chairman of the Executive Board of Latvijas Finieris:

“The development of Latvijas Finieris has always been based on long-term investments in production, technology, and infrastructure. In recent years, the company has implemented one of the most ambitious investment programmes in its history, amounting to EUR 400 million, covering both major industrial projects and many smaller improvements to production processes. This approach allows the company to maintain steady growth while flexibly adapting to the demands of international markets. The expansion of VEREMS mill is the largest investment project in the current period, which, in addition to the gradual increase in production volumes, will also have a significant impact on market dynamics – by specialising in large-format plywood, VEREMS will create additional demand and new opportunities in higher value-added product segments.”

Armands Krauze, Minister of Agriculture:

“This project is proof that Latvia’s forestry sector is capable not only of competing successfully in international markets, but also of pursuing purposeful development by skilfully investing in modern technologies and sustainable solutions. With this investment, Latvijas Finieris sets an example for the entire industry, demonstrating how locally sourced raw materials can be transformed into high value-added products, thereby strengthening both export capacity and the national economy as a whole. It is particularly significant that a development project of this scale is taking place in the Latgale region. This means new jobs and an additional stimulus for the region’s development. Strengthening the regions is one of our key priorities, and projects like this bring it into practice. At the same time, the sustainability aspect must also be emphasised – more efficient use of timber and its application in construction demonstrate that we can manage resources wisely and responsibly, with future generations in mind. Latvia’s forestry and wood-processing sector is a source of national pride, and development projects of this kind reinforce its future.”

Work on the preparation of the mill expansion project started in 2017, while construction began in September 2022. The new building covers an area of 19 964 m2, which now brings the total mill area to 49 228 m2. Design works were carried out by 8 A.M., construction was carried out by CASTOR CONSTRUCTION, and construction supervision was provided by Jurēvičs un partneri.

The new production building also houses two purpose-built office blocks – one indoors, with an office, laboratory and lounge rooms, and the other outside, near the finished goods shed. It is worth noting that the new premises also use self-produced birch plywood. Plywood furniture is used in the office, laboratory and lounge rooms. And plywood road and direction signs have been installed in the mill and its territory. Plywood is also used as an auxiliary material in concrete formwork and elsewhere.

Zinaīda Lovnika, Chairwoman of the Executive Board of VEREMS RSEZ SIA:

“The expansion of the mill is not only an important step in the company’s development but also a significant contribution to the growth of the region. As a result of the project, we have created around 90 new jobs, strengthening employment and economic activity in Latgale. It is important for us that the development of the company contributes not only to the growth of industrial capacity but also to the socio-economic development of the local community – people, families and the community as a whole, creating a solid foundation for the development of Latgale and future opportunities.”

The new VEREMS production facility is equipped with innovative modern technologies.
Māris Bumbieris, Director of Latvijas Finieris’ Iekārtu rūpnīca:

“As the Group’s centre of technical competence, Iekārtu rūpnīca was present from the very first days of the expansion project. Raute Corporation was the main supplier of the process equipment, but Iekārtu rūpnīca was involved with its own solutions as soon as the first equipment was delivered, so that the newly installed lines could operate in a single chain with the other lines. The experience gained in the Kohila Vineer expansion project was a strong and decisive argument for entrusting the installation of the VEREMS expansion project to the professional team of Iekārtu rūpnīca. Alongside the production of small assemblies and the assembly of the new lines, Iekārtu rūpnīca also demonstrated its expertise in the creation of a unique plywood putty line. Our experts designed, manufactured, supplied, and installed the large-format plywood sheet processing line themselves. Importantly, the line is currently designed for manual plywood puttying, but with the idea that once the solution for automatic puttying has been validated, it will be equipped with an automation unit, thus rebuilding the line for automatic processing with a slight modification.”

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Other facts:
VEREMS RSEZ SIA was established on: 12 January 1996 (then called SIA J.S.F.)
Since 1999, it is a company of AS Latvijas Finieris group
Location: Rēzekne Municipality, Rēzekne Special Economic Zone
Eighth largest company in Latgale (according to Dienas Bizness “TOP 500” data)
Number of employees: 440
Average gross salary: EUR 1 800/month (> 30% above the average for Latgale region)
Turnover (until 2025): EUR 50 million (mainly exports)
Added value (until 2025): EUR 20 million:
o including EUR 10 million earnings (EBITDA)
o including EUR 10 million staff salaries and taxes
Total area: 49 228 m2
Amount of timber structures used: 2700 m3
The largest industrial building in the Baltics to use timber structures.
Current plywood production volume: 45 000 m3
Planned total production capacity after the opening of the new mill: 85 000 m³