Last 2019 year was marked by significant uncertainty in the world’s market, especially of developed countries, and mainly because of recurring economic fluctuations and total slowdown of development. It resulted in less demand and bigger competition in industrial birch plywood product segment. Despite of this Latvijas Finieris turnover in 2019 was Euro 228.9 million and EBITDA reached Euro 32.3 million.
Overall, the Group last year provided work an average to 2545 persons a month, of whom 2150 worked in Latvia, moreover an average Euro 8490 of labour taxes were paid per year (mandatory social insurance contributions and personal income tax). It should be noted that in 2019 also Euro 1.326 million were paid as the green electricity mandatory procurement component.
Although the prognosis of macroeconomic growth in main markets in Europe and world was not any better in the beginning of 2020, coronavirus COVID-19 pandemic caused unprecedented crisis in global economy.
In first four months the Group’s total turnover has decreased by 9% comparing to 2019 which also was impacted by some slowdown. At the same time thanks to ability to adapt to customers’ needs and timely react to every order and perform operative deliveries, the Group’s core product production is running at full capacity. Only plywood processing and machining mills order books in Riga are not fully booked, there is the biggest slowdown in the market for these specific products.
In 2019 the significant part of 26.4 million euros investments was invested in improvement of manpower efficiency and product development. Although this year investment program has been revised and will be more modest, the development main directions are the same. Here an investment project - betulin pilot mill, which will be opened at the end of 2020, should be mentioned.
Latvijas Finieris is one of the largest birch plywood producing companies in the world with production in all Baltic countries and in Finland.
