STIGA RM completes modernisation of the Kuldīga factory – investments exceed EUR 22 million
One of the leading Latvian wood processing companies, Stiga RM, has successfully completed the modernisation project of its birch plywood factory in Kuldīga. The State has also made a significant contribution by providing funding of EUR 5.145 million under the ALTUM Large Investment Project Support Programme. Total investments over two years amounted to EUR 22.4 million. The demand for high-quality birch plywood on the European and global markets continues to grow, and the expansion and modernisation of the Stiga RM plant significantly strengthens the position of the company as one of the leading producers in the region.
The project was launched in early 2023 and has resulted in significant improvements in the efficiency of birch plywood production and the introduction of new equipment and technological processes; higher product quality also stimulates a significant increase in exports. Simultaneously, the project has enabled the creation of 38 new jobs for highly qualified professionals, strengthening the position of the company both in Latvia and in foreign markets.
“Thanks to this modernisation project, we reached the maximum production capacity of the Kuldīga factory in December last year, significantly expanding the product range and introducing sustainable solutions in wood processing. We also managed to increase the added value of our production by significantly increasing the share of laminated plywood. We especially appreciate the State support – under the ALTUM programme, we were able to implement the project in full immediately, and this became an important boost for further investment steps. A lot of work has been done, but new peaks are yet to be reached,” says Andris Ramoliņš, Chairman of the Board of Stiga RM.
Development finance institution ALTUM played an important role in securing the financing, which, in cooperation with the Investment and Development Agency of Latvia (LIAA), assessed the importance of the project for the national economy and the development potential of the company. EUR 5.145 million from the programme “Large Investment Loan with Capital Allowance” has been allocated for the implementation of the project. Currently, Stiga RM is preparing all the necessary documentation in accordance with the terms of the agreement to start the assessment of the fulfilment of the conditions of the loan, which would potentially allow the full cancellation of the loan received.
Having successfully completed this phase of development, Stiga RM is preparing to start the next growth cycle, focusing on exports, innovation and the production of high value-added products.