OREANDA-NEWS. On 23 May 2008 was announced, that Lithuanian company Likmere, a company of the Group of Latvijas Finieris, signed a loan agreement with AS Hansabanka for a loan worth nearly 9m to purchase facilities and establish a production unit of rotary cut birch veneer. The rotary cut birch veneer will be used by Latvijas Finieris to manufacture plywood which, in its turn, is a timber product of a high added value and exports value.

By implementing this project the company Latvijas Finieris continues to optimise resource supply chain and production units in the Baltic region. A closer location of the production unit to the wooden resources will enable to optimise not only transportation expenditure for suppliers, but it will also help to nourish good relations with local resource owners and will foster mutually advantageous long-term co-operation.

Already last October implementation of the first stage of this project was launched as construction works of rotary veneer production unit worth LVL13m started. It will launch its operations in late 2008 and it will be equipped with state-of-the-art technologies and they will enable to use the timber resources economically and produce 85 000 cubic metres of rotary cut birch veneer of high quality.

This year lending to exporting companies is a priority of Hansabanka because export growth is a prerequisite for a sustainable economic development and the company Latvijas Finieris may be mentioned in particular as the company which sees the market opportunities and has been successful in the area of exports,” says Mr. Elmars Priksans, Member of the Management Board, Head of Corporate Banking Division of Hansabanka. "The Company applies innovative production technologies, creates export-oriented products and ensures a complete production cycle from forest management and logging to production of ready plywood”.

Mr. Uldis Bikis, Chairman of the Board of Latvijas Finieris, emphasizes: “Our Group develops its strategy in Latvia on the basis of long-term co-operation with forest owners of Lithuania in the areas like purchase of birch plywood pads and supply to production units. The Birch Programme of Latvijas Finieris comprises not only development of production, but also reforestation measures. Thus, for the second consecutive year the company will acquaint the Lithuanian public with the tradition of the Forest Day. The event to be held in May 2008 will be even more ambitious as Latvian and Lithuanian government officials and students of all ages will be invited to participate.”

Operational development strategy of Latvijas Finieris is focused not only on timber processing: a crucial role is given also to sound and sustainable forest production and reforestation. In co-operation with scientists there is a continuous work undergoing to find increasingly better methods for birch production and they are included in a special birch production programme of Latvijas Finieris. The Group wants to spread this experience also in the neighbouring country.