Tuesday, January 20, 2026
With the signing of a collaboration agreement between construction company BauArt and STIGA RM, one of the nation’s top wood processing companies, to build a new, large-scale birch plywood manufacturing mill in Ogre, Latvia’s timber industry is expected to grow significantly. One of the biggest recent investments in Latvia’s wood processing industry, the project is anticipated to improve the nation’s standing as a competitive exporter in global timber markets.
The start of construction will be officially marked by a ceremonial time capsule laying at the end of October, symbolising the launch of a multi-year development programme. Over the next three years, the site will be transformed into a modern plywood manufacturing complex specialising in custom-sized birch plywood formats, a segment with growing demand across Europe and beyond.
According to Andris Ramoliņš, Owner and Chairman of the Board of STIGA RM, the Ogre facility will become the company’s third wood processing mill, continuing a long-standing partnership with BauArt. He noted that all previous STIGA RM mills have been developed in cooperation with the same construction partner, creating confidence that the new project will meet high standards of quality, efficiency, and reliability. Ramoliņš described the mill as a strategically important investment that could stand out as one of the most notable industrial developments in the Baltic region.
From the construction perspective, BauArt has highlighted the technical complexity of the project. Alvis Krēķis, Chairman of the Board and Commercial Director of BauArt, stated that the mill will be one of the company’s largest undertakings in recent years. He emphasised that the facility will require advanced engineering solutions, precise execution, and close coordination between designers, builders, and technology suppliers. BauArt views the project as an opportunity to help create a new industrial flagship for Latvia’s timber sector.
The new birch plywood mill will be located on a site with a long industrial heritage, where a sawmill previously operated. By redeveloping the area, STIGA RM aims to convert a historically industrial zone into a modern production hub with a long-term vision for sustainable development. The project aligns with Latvia’s broader strategy of adding value to domestically sourced wood and expanding downstream processing rather than exporting raw materials.
Construction is planned to be carried out in two phases, allowing production capacity and infrastructure to be scaled in line with market demand. Full completion of the mill is scheduled for 2029. Once operational, the facility is expected to significantly increase STIGA RM’s plywood output and enhance its ability to serve international customers seeking tailored product dimensions and consistent quality.
The total investment is estimated at approximately €92 million, with part of the funding supported through state co-financing mechanisms designed to encourage industrial development and export-oriented manufacturing. The project is also expected to generate long-term economic benefits for the Ogre region, including job creation, skills development, and increased activity across the timber supply chain.
With global demand for sustainably sourced wood products continuing to rise, the new Ogre mill positions STIGA RM to capitalise on market opportunities while reinforcing Latvia’s reputation as a key player in the European timber and plywood industry.
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Tags: birch plywood Latvia, Latvia timber industry, plywood export Europe, sustainable timber production, timber manufacturing Baltics, wood processing investment
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