The global economy is currently experiencing a very serious crisis. Extremely difficult, even impossible, to make objective predictions about its extent, duration and consequences. Unlike traditional cyclical fluctuations in the economy, this time the cause of crisis is not to be found in the business environment, but in physical threats to the security of the world’s population – unprecedented for today’s generation. At present, all national level actions in different countries are mainly aimed at limiting and stopping the spread of the virus. This fight is not expected to be rapid and may take many months. After winning the virus, it will take even longer for the global economy to recover.

The Latvijas Finieris Group exports more than 90% of its core products – birch plywood with the brand RIGA. According to the standard procedure in a crisis situation, all planning is currently carried out in the short term, responding to rapidly changing external conditions and making operative decisions for the coming weeks, in some cases – for nearest months. Mārtiņš Lācis, Head of Marketing, Sales, Purchasing and Logistics informs, that predicted decrease of sales volumes in April will be in the range of 5-8%.

“We cannot predict much further. Currently the most important thing is our ability to respond very quickly to each new order and provide delivery promptly.”

Mārtiņš Lācis, Head of Marketing, Sales, Purchasing and Logistics.

“Although the situation in the Group can be assessed as stable now, it is clear that the crisis will have an impact on the performance indicators of 2020 and henceforth we will periodically have to reduce production time.”

Jānis Ciems, Latvijas Finieris CEO.

During the Easter holidays, as well as on April 11, production was already suspended in all the Group’s factories, operative decisions on short-term stoppages can be made in the future as well.

It should be noted that no confirmed cases of COVID-19 have been recorded among Latvijas Finieris colleagues in factories and at the central office until the morning of April 16.