Latvian-owned plywood company expands factory in Estonia

OU Kohila Vineer, a plywood manufacturing company of the Latvijas Finieris group of Latvia, will open the second phase of a €80m factory extension project at Kohila, Estonia on Nov. 15, reported LETA Thursday.

The birch plywood plant with an aggregate floor area of almost 18,000 square meters will introduce products of the Riga brand here.

"After two stages of investment worth altogether €80m, we have a state-of-the-art birch plywood factory that is ready to process 160,000 cubic meters of wood per year," Latvijas Finieris said.

The plant will employ a workforce of 200.

Andres Lahe, board member of Kohila Vineer, said in June that the factory will employ 230 people and the extension is expected to quadruple its annual revenue to €40m.

Lahe said the company expects to start manufacturing veneer at full capacity at the beginning of 2017. To satisfy increased demand for energy arising from the manufacture of veneer, a new wood leftover fueled boiler will be installed in the territory of the plant.

Latvijas Finieris group had a turnover of €196.5m in 2015 when it invested €42.3m into product development. The group employs 2,500 people.

Latvijas Finieris has factories in Latvia, Lithuania and Finland.

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