Tuesday, January 20, 2026
The birch plywood industry in Northern Europe is set to receive a significant capacity and technology boost as Riga Wood Finland Oy, a subsidiary of Latvia-based JSC Latvijas Finieris, continues the expansion of its manufacturing facility in Sastamala, Finland. The project forms part of a wider investment programme designed to strengthen the Group’s position in the competitive European plywood and veneer markets.
Construction activity at the Sastamala plant progressed steadily over the past year. Towards the end of 2025, groundwork was completed for a new finishing basin, a critical component in the veneer production process. Structural foundations are now in place, with concreting of the basin walls scheduled during 2026. At the same time, the existing production building has undergone significant modification, including the raising of the roof across an area of approximately 550 square metres to accommodate a new peeling line.
To support the expansion, contracts have already been finalised for the supply of advanced production equipment and processing technologies. Installation of the new machinery is planned for autumn 2026, with commissioning and ramp-up expected to follow shortly thereafter. The upgraded production line is scheduled to become fully operational in early 2027, marking a major milestone for the Finnish operation.
The Sastamala expansion is part of a broader €15 million investment aimed at increasing birch veneer and plywood output, enhancing automation, and introducing state-of-the-art digital and artificial intelligence solutions into manufacturing processes. These upgrades are expected to improve material efficiency, production consistency, and overall operational productivity—key factors in an industry facing rising energy costs, tighter environmental standards, and growing competition for raw materials.
Beyond technological advancement, the investment is also expected to deliver positive regional economic effects. Increased production capacity and modernised operations are anticipated to support employment in the Pirkanmaa region while reinforcing the long-term viability of industrial wood processing in Finland. The project aligns with the Nordic emphasis on high-value, resource-efficient use of forest raw materials.
According to Jānis Ciems, Chairman of the Board of Latvijas Finieris, the Sastamala expansion represents a strategically important step in the Group’s long-term development. He noted that targeted investments in modern technology and increased capacity are essential to strengthening the company’s role in the birch wood resources market and ensuring competitive, sustainable production in the years ahead.
Latvijas Finieris has also highlighted broader strategic drivers behind the project. As competition for efficient land use intensifies across Europe, the Group plans to process approximately half of its veneer log volumes outside Latvia in the coming years. Expanding production in Finland allows the company to diversify processing locations while remaining close to key raw material sources and customers.
The Sastamala project is being implemented with financial support from OP Corporate Bank. The company expects the investment to generate long-term returns that contribute not only to the growth of Latvijas Finieris but also to economic development across Finland, Latvia, and Estonia. With the expansion, Riga Wood Finland is positioning itself as a technologically advanced and resilient player in the evolving European birch plywood industry.
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Tags: AI in wood processing, birch plywood industry, birch veneer production, European Plywood Market, plywood manufacturing Finland, Riga Wood Finland, sustainable wood products
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