Stiga RM plans to acquire nearly 2,000 hectares of forestland, investing in Latvia’s forests as a strategic asset

Continuing to strengthen its independence from the availability of Latvia’s strategic reserve – roundwood – Stiga RM, one of Latvia’s leading timber industry companies, plans to acquire nearly 2,000 hectares of forest properties in the near future, investing in Latvia’s forests as a strategic asset. Stiga RM regularly acquires forest properties in Latvia, but the planned acquisition will represent a significant step in expanding its forest property portfolio. The total investment will amount to approximately EUR 8.5 million, of which EUR 3 million will be financed from the company’s own funds, while EUR 5.5 million will be provided through a loan from OP Corporate Bank plc.

“We clearly recognise that, with our logging volumes growing rapidly and already exceeding 500,000 cubic metres annually, it is strategically important to expand our own forest property portfolio. At Stiga RM, we view forests as Latvia’s strategic reserve that must be managed with a long-term perspective, increasing the value of forests over time. A forest is an asset in its own right, and when managed responsibly, it can also provide the foundation for the production and export of high value-added products. This is precisely why, by combining wood with our expertise and the opportunities provided by modern technologies, Stiga RM produces high-quality products that are in demand worldwide at our birch plywood mill in Kuldīga and Wood Wool Cement Board (WWCB) factory in Tukums,” emphasises Andris Ramoliņš, Owner and Chairman of the Board of Stiga RM.

“We are pleased to continue our long-standing cooperation with Stiga RM. We highly value the company’s focused approach to development and its commitment to investing in long-term value creation. Expanding its forest property portfolio strengthens the company’s independence in securing raw material supplies and provides a stable foundation for further growth, while also supporting investment in the development of Latvia’s forestry and wood processing industries,” says Elmārs Prikšāns, Head of the Latvian Branch of OP Corporate Bank plc.

This is another step that reflects Stiga RM’s policy of investing in Latvia’s forests as a long-term asset. The company has previously taken a similar step by acquiring 505 hectares of forestland in Latvia for a total of EUR 4.06 million. As a result of the 2023 transaction, Stiga RM, a local company, acquired Latvian forestland previously owned by a Scandinavian investor – a relatively rare occurrence in the forestry industry. “The company is currently in active negotiations with several foreign companies regarding the potential acquisition of forestland they own in Latvia. In Stiga RM’s view, Latvian companies need to become significantly more independent in terms of raw material supply in order to continue investing in the development of modern industry,” says Andris Ramoliņš.

Through targeted investments in land expansion, the total area managed by Stiga RM currently stands at 13,500 hectares. With this planned land acquisition, the total property managed by the company will reach nearly 15,500 hectares, significantly enlarging its portfolio and securing a stable flow of raw materials for Stiga RM’s factories. Crucially, the majority of these properties are forest lands where the company carries out the full forest management cycle based on sustainable forestry principles.