Stiga RM is ready to be ahead of time - plywood plant to be modernised to increase production efficiency
Rising energy prices, inflation, rising labour costs, events in Ukraine and the continuing effects of the Covid-19 pandemic have contributed to economic instability in Latvia and around the world, resulting in rising raw material and other resource costs. This means that many manufacturing companies will also have to adapt to the new conditions and develop a more efficient operating strategy. This has already been successfully started by the leading forestry and wood processing company in the Kurzeme region, SIA Stiga RM, which has decided to carry out extraordinary modernisation of the plant, which will help the company to reduce production costs and strengthen its competitiveness in the world market. Stiga RM has signed a 10 million euro contract with the world leader in the production of birch plywood equipment - the Finnish company Raute Corporation , which will supply new production equipment to Stiga RM in a few months. Modernisation will allow the company to produce high-quality products and ensure work efficiency in accordance with global trends.
In this challenging time, Stiga RM has decided to get ahead of time and find the opportunity to work with maximum efficiency today, by modernising its birch plywood plant, including increasing its level of automation and production efficiency. Andris Ramoliņš, the head of Stiga RM, emphasises that the modernisation will increase the productivity of the plant, create products with even higher added value, increase the company's competitiveness in the world and ensure sustainable development in the forest sector.
“Although “to be ahead of time” sounds like a poetic reverence, in a way it is exactly what Stiga RM is doing right now. The modernisation of the plant took place in 2017, 2018 and 2019. In fact, with this decision to carry out extraordinary modernisation, we have decided to accelerate our development, including maximising production efficiency, and to be today what we should only be in 2029. In that sense, we can say with confidence that we are ready to be ahead of time,” said A. Ramoliņš.
He pointed out that the modernisation plan of the Stiga RM plant will cover six production facilities, including a new Raute veneer peeling line R7 and a dry veneer sorting line in addition to the modernisation. Raute has been chosen as the cooperation partner for the modernisation of the plant because, according to A. Ramoliņš, it is one of the leading companies in its field and Stiga RM always chooses the best.
The modernisation of the plant is expected to take place from autumn 2022 to summer 2023.
He points out that the total investment plan for the development of the Kuldīga birch plywood plant amounts to 20 million euros over two years - the cooperation with Raute is only the first agreement concluded from the total investment. The company, in cooperation with the Investment and Development Agency of Latvia (LIAA), also plans to invest 28 million euros in the Tukums region. Currently, the company Stiga RM has submitted two major investment projects to LIAA, the evaluation of which has been extended until 2 July, but despite this, the implementation of the Kuldīga plant project has already started. “It is important for us that the regions develop and we are honoured to create jobs for the residents of the regions and to be one of the leading employers in Kurzeme. If our development can help promote the competitiveness of regions, then it is only a plus,” says A. Ramoliņš.
“We are working to ensure that our products meet the highest requirements of tomorrow and the day after, not of today. We are confident that this work will pay off and will bring real profit, which we will all be able to see in Latvia's export rates and state tax revenues. I am confident that Stiga RM will become an example of how to manage efficiently, and not only other Latvian companies, but also companies from all over the world will be able to learn from us,” adds A. Ramoliņš.