With the expansion of its Verems plant in Latvia, inaugurated at the end of April, Riga Wood (a brand of the Latvijas Finieris group) is reaching a new milestone in the European birch plywood market. By doubling the site’s capacity and strengthening its forest integration, the group is consolidating a specialised value chain focused on technical performance, resource security, and the full valorisation of wood.

The expansion of the Verems plant is one of the flagship projects of the Latvijas Finieris group. With a budget of €100 million, “it represents one of the largest industrial projects in Latvia, and the most important in the region,” explains Aigars Veitmans, Director of Development, Investments and Services at Latvijas Finieris. Located near the Russian border, the site sees its production capacity increase from 45,000 to 85,000 m³ of plywood per year, amid strong European demand for technical birch-based products. This large-scale investment is part of a strategy to move up the industrial value chain and optimise material flows, notably by focusing on large-format panel production, as explained by Stéphane Levoir, head of Riga Wood France: “The particularity of this production site was its ability to produce maxi-formats. We are the only ones in Europe producing panels with dimensions of 2150 x 3850–4000 mm. The increase in plant capacity will be mainly focused on 1850 mm-width panels (dimensions: 1850 x 3850–4000 mm), which are highly appreciated on the French market.” This expansion of the Latvian site also strengthens the group’s export capacity, with an additional contribution of around €30 million in international turnover. “With this new investment, the group consolidates its position as the leading European birch plywood producer,” adds Stéphane Levoir.

At the industrial model level, the group is based on a fully integrated birch value chain. Logs come from Latvia, Estonia, and Sweden. As for Finland and Lithuania, since the group operates peeling units locally, veneers are shipped to the Latvian and Estonian plants. Production sites are distributed across several Baltic countries to optimise processing stages, from peeling to gluing. This organisation helps bring industrial units closer to forest resources and secure supply chains. The characteristics of local birch—slow growth, average diameter of 38 cm, and an average age of around 70 years—also contribute to the material’s stability.

An automated industrial process

At the Verems site, birch processing takes place on a fully optimised production line. After a hydrothermal treatment designed to soften the fibres, the logs are debarked, dimensioned, and then peeled at high speed (200 m/min). The process includes optical sorting systems to optimise material yield and reduce waste. The veneers are then dried, sorted, assembled, and pressed to form the final panels.

The equipment also enables the production of larger formats, meeting growing European demand for panels optimised for downstream processing. To produce more “green” panels, the group has also focused on the evolution of bonding systems: an increasing share of the resins used now incorporates lignin derived from wood, partially replacing phenol. This innovative bonding process, marketed under the Riga Ecological brand, reduces dependence on fossil-based materials while maintaining mechanical performance and panel durability, particularly in outdoor conditions. All products comply with EN 314 class 3 standards, ensuring resistance in demanding environments.

A consolidating European industry

The expansion of Verems illustrates the structuring of a competitive Baltic industry within the European technical plywood market. By combining forest integration, increased industrial capacity, and material innovation, Latvijas Finieris is strengthening its position in a high-value niche segment. In a context of growing demand for high-performance, traceable, and sustainable materials, birch plywood is establishing itself as a benchmark technical solution in Europe. Marketed under the Riga Wood brand, this plywood is distributed across the entire European market. The group’s strategy is based on a segmentation between distribution and industry, with an important role played by specialised wood-panel merchants. Large-format panels represent a key differentiating factor in France, enabling cutting optimisation and reducing material waste for processors.

Photo credits: Riga Wood

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