Latvijas Finieris inaugurated an expansion of the Verems RSEZ SIA plywood mill in Vērēmu Rural Territory of Rēzekne Municipality, Latgale, Latvia, on Friday, following a Euro 100 million investment to add production premises and install new equipment.
The expansion raises total production capacity to 85,000 m3 from a current plywood production volume of 45,000 m3 and adds a 19,964 m2 building, bringing total mill area to 49,228 m2. Project preparation started in 2017 and construction began in September 2022.
Zinaīda Lovnika, Chairwoman of the Executive Board of Verems RSEZ SIA, linked the expansion to regional employment and said, “As a result of the project, we have created around 90 new jobs.” She said the project is intended to strengthen economic activity in Latgale and support local households and communities.
The building uses 2,700 m3 of timber structures and includes two office blocks, one inside the production building with an office, laboratory, and lounge rooms, and another outside near the finished goods shed. The project uses self-produced birch plywood in interior fittings, including furniture and on-site road and direction signs, and as an auxiliary material in concrete formwork.
Māris Bumbieris, Director of Latvijas Finieris’ Iekārtu rūpnīca, said Raute Corporation was the main supplier of the process equipment and described how newly installed lines were integrated with existing lines. He said Iekārtu rūpnīca “designed, manufactured, supplied, and installed the large-format plywood sheet processing line” and built a plywood putty line that “is currently designed for manual plywood puttying,” with an automation unit to be added after an automatic puttying solution is validated.
Verems listed 440 employees and an average gross salary of Euro 1,800 per month, which it said is more than 30% above the Latgale region average. Verems listed turnover of Euro 50 million through 2025 and added value of Euro 20 million through 2025, including Euro 10 million in earnings (EBITDA) and Euro 10 million in staff salaries and taxes.
The expansion is set to generate additional exports of more than Euro 30 million annually. Verems said it was established on January 12, 1996, has been part of the AS Latvijas Finieris group since 1999, and operates in the Rēzekne Special Economic Zone.
