- The financing will back Latvijas Finieris’s investments in the sustainable modernisation and expansion of production facilities to support its growth ambitions and strengthen its competitive market position.
- The loan agreement is part of the European Commission’s Investment Plan for Europe programme to help businesses gain access to the funds they need to innovate, grow and create jobs.
The European Investment Bank (EIB) has provided €39 million in financing to AS Latvijas Finieris, a leading Latvian mid-cap manufacturer of birch plywood, for investments in research and development and to modernise and expand the integrated birch plywood production facility at Lignums and at Verems. The agreement comes under the Investment Plan for Europe supporting sustainable investment, innovation and job creation in Europe.
The project is fully aligned with EU policy to promote innovative mid-caps in support of the bioeconomy. Through this first loan agreement with the EIB, Latvijas Finieris is seeking to improve the efficient use of natural resources and aims to reduce the environmental footprint of its operations.
Valdis Dombrovskis, Executive Vice-President of the European Commission for an Economy that Works for People, said: “I welcome this agreement with the EIB, which, backed by the EU budget guarantee, will support both Latvijas Finieris’ investments in research and development and its capacity expansion, while reducing its environmental footprint. Birch plywood manufacturing is an important sector in Latvia, with a key stake in the country’s labour market and global standing as a lead producer in the bioeconomy. We will continue to help businesses like Latvijas Finieris access the funding they need to keep on innovating, scale-up and foster job creation.”
“This agreement with Latvijas Finieris is a milestone in terms of EU support for a Latvian company,” said EIB Vice-President Thomas Östros, who covers Latvia as part of his portfolio. “Latvijas Finieris is one of the most innovative companies in the sector with a good sustainability policy. The EIB will support much-needed investments in R&D, new production capacity and increased efficiency, helping to accelerate the transition to a green and sustainable economy.”
“Until now, our investments have been financed from the company’s funds through close and fruitful collaboration with commercial banks. Borrowing from an institutional lender such as the EIB is a new experience for us,” tells Pauls Ābele, Deputy Chief Executive Officer of Latvijas Finieris. “The EIB loan repayment period is twice as long as what we have previously worked with. This facilitates decisions to invest in projects with a longer payback period, which green technologies, products and R&D often are. Cooperation with the EIB may increase the company’s ambitions for new projects and even business directions in the future.”
Background information
The European Investment Bank (EIB) is the long-term lending institution of the European Union and is owned by the EU Member States. The EIB Group has adopted a Climate Bank Roadmap to deliver on its ambitious agenda to support €1 trillion of climate action and environmental sustainability investments in the decade to 2030 and to deliver more than 50% of EIB finance for climate action and environmental sustainability by 2025. As part of the roadmap, all new EIB Group operations have been aligned with the goals and principles of the Paris Agreement since the start of 2021.
About the Investment Plan for Europe:
The Investment Plan for Europe was launched in November 2014 to reverse the downward trend in investment levels and put Europe on the path to economic recovery. Its innovative approach based on the use of an EU budget guarantee provided to the EIB Group has enabled and continues to enable substantial public and private sector funds to be mobilised for investment in strategic sectors of the European economy. The Investment Plan for Europe has already generated more than €460 billion of investment and supported 1.1 million startups and small and medium-sized enterprises across Europe. Find the latest EFSI figures by sector and by country here, or see the FAQs.
Latvijas Finieris is a closed joint stock company. Together with numerous subsidiary companies, it forms the multi-sector Latvijas Finieris Group with key business in research and development, production and sales of tailored birch plywood products under the brand Riga Wood. Our birch veneer and plywood production facilities are located in Latvia, Lithuania, Estonia and Finland. Our products are delivered to over 60 countries worldwide for a range of uses such as concrete formwork systems and scaffolding; staging; interior solutions including decorative wall and ceiling linings; joinery, furniture and shopfitting; transport floors, walls and shelves; ATA flight cases; sea transport; die-board and high-end packaging, and more.
