Friday, August 15, 2025
Within striking distance of a nine-figure year, Latvia‘s Stiga RM completed a €22.4 million refurbishment of the birch plywood factory. The combined consolidated turnover of the group and its five connected firms was around €97 million, with EBITDA over €20 million. Over 600 people worked in the Kurzeme and Zemgale areas, and about €9 million was paid in taxes. In 2024, the company spent €37 million on capital expenditures as part of a significant investment program. In a year with erratic markets, these are respectable figures.
The strongest signal is where that money went
Stiga RM finished a €22.4 million upgrade of its birch plywood plant in Kuldiga. The project, launched in early 2023, added production space and energy-efficient equipment to raise volume and quality. State support came through the ALTUM Large Investment Project program, which contributed €5.145 million. The company reports better efficiency, a broader product range, and a higher share of laminated plywood after the upgrade, with the factory reaching full capacity in December 2024.
The pipeline does not stop in Kuldiga. In Ogre, Stiga RM secured €18.2 million in financing from OP Corporate Bank to equip a new birch plywood facility. The project scope is large, with total costs planned at €86 million across two stages through the end of 2028. The site sits on the former Norupe sawmill, acquired in May 2024, and is set up to produce higher-value wood products for export. For buyers, that points to added Baltic plywood capacity in the medium term.
Context helps
Stiga RM posted almost €95 million in turnover for 2023, up about 12 percent from 2022, with EBITDA of €30.2 million and net profit of €22.2 million. The group said it invested €31 million that year and paid €7.4 million in taxes, while keeping more than 560 people employed. The stated strategy is to channel profits into modernization, higher added-value products, and a wider footprint to cushion market swings.
For woodworking firms and traders, three takeaways stand out
First, the Kuldiga upgrade is geared to quality and mix. A higher share of laminated plywood suggests more options for furniture, shopfitting, joinery, and transport uses where surface performance and durability count. Energy-efficient kit and new processes should also help with consistent output and tighter tolerances. If the specs already include Baltic birch, watch for new SKUs and thickness ranges as the plant’s product mix evolves.
Second, added capacity is on the way, but not overnight. The Ogre project runs in stages to 2028. That timeline matters for price planning and contracts. Short term, supply shifts will likely come from the optimized Kuldiga line and better yields. Medium term, as Ogre phases in equipment, buyers may see larger volumes and more choice in finishes and formats. If you plan multi-year projects, consider framework agreements that allow for volume ramps tied to the Ogre milestones.
Third, the regional footprint is an asset. Operations span Kurzeme and Zemgale, with jobs and taxes anchored locally. For European customers, this location supports shorter transit times compared with shipments from farther afield. That can help with lead time reliability, especially on repeat orders for laminated grades. The employment and tax profile also hints at stable local operations, which tends to support steady dispatch patterns.
Market demand is the other side of the story. The Baltic Times notes rising demand for high-quality birch plywood in Europe and beyond, which aligns with the company’s choice to increase laminated output. Many buyers are rebalancing supply after a period of turbulence in the hardwood panel trade. In that setting, incremental, local capacity that favors value-added grades can carry pricing power while still improving availability for contract customers.
What should shop owners, fabricators, and distributors do?
Keep an eye on grade availability from Kuldiga. If you run laminated birch in cabinets, fixtures, or vehicle builds, ask suppliers about new layups, face options, and moisture-resistant resins linked to the upgrade. For projects in 2026 and beyond, add the Ogre ramp to the sourcing map. If the factory follows the plan, expect staged increases in volume and potential introductions of specialty formats. If the factory wants to rely on just-in-time deliveries, Latvia’s geography can help reduce buffer stock compared with longer routes.
Also consider certification and compliance. New equipment and process control often make it easier for mills to document chain-of-custody and meet customer audits. If an organisation’s clients are tightening ESG checks, updated lines can be a plus in bids. Finally, track Stiga RM’s public reporting. The company has shown a pattern of reinvesting profits to reduce exposure to market shocks, which supports steadier relationships with downstream partners.
The headline is clear. Stiga RM is closing in on €100 million in annual turnover, backed by visible bricks-and-mortar upgrades and a new factory build. For the woodworking industry, that means more Baltic birch options, a shift toward laminated grades, and an outlook for added capacity as the Ogre project comes online. If a factory plans to buy, specify, or machine birch plywood, now is the time to talk with the supplier network and line up trials on the newer grades.
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Tags: birch plywood, Kuldiga plywood plant, laminated plywood, Latvia plywood, Stiga RM, woodworking investments
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