Wood Industry

With forests covering more than 50% of the country’s territory (almost double the world average), Latvia is one of the most forested EU member states. Over the last 80 years, the forested area has doubled while standing volume has increased 3.8 times, reaching 668 million m3.

About Latvian Wood Industry

According to National Forest Inventory (NFI) data from 2014, the majority of Latvia’s forest cover consists of deciduous trees, 55% of total woodland.

46% of forests are owned by the State and managed by State stock company Latvijas Valsts Meži (Latvian State Forests).

In 2015, a total area of 42 000 ha of forest was regenerated, of which 39% was in State-owned forests and 61% in private-sector forests.

The volume of timber harvested from Latvia`s forest was 11 million m3 in 2015. 

Forest management processes and timber product delivery chains in Latvia are certified on the basis of the world’s two most widely used systems—FSC and PEFC.

The forest industry has convincingly demonstrated its strategic importance to Latvia’s national economy. Of all the manufacturers registered in Latvia, 26% are linked to the forestry sector, which employs around one-fifth of the manufacturing labour force

Small and medium-sized companies, which predominate in the forestry sector, mainly manufacture niche products (garden, finishing, packaging, joinery products, etc.), while the larger enterprises focus on the production of higher value-added products (load-bearing products, impregnated products, construction materials).

Woodworking is also one of the most important export sectors, providing around 17% of overall product exports. 

About Latvia

Accessibility to large markets

Latvia is in a unique geographical and cultural position—as the northern European country it provides a strategic location for business operations targeting developed EU markets and emerging markets of the Eastern neighbours. Latvia is a natural gateway between the US, EU and Asia (especially Russia/CIS).


Skilled and motivated workforce

Representing northern European culture, Latvians have a strong work ethics and they are highly motivated, especially given the effects of the recent global economic crisis.


Developed infrastructure

Latvia offers all the infrastructure and services companies need to operate at levels that meet or exceed European standards.


Information and communications technology

Latvia has one of the fastest telecommunication infrastructures in the world, providing companies seamless connections with customers and partners abroad.


Transport & Logistics

Ports

One of Latvia’s main assets providing access to markets is its Maritime links. Latvia has three major ice-free international ports—Riga, Liepaja and Ventspils, that are closely linked into the country’s infrastructure by rail, road and pipeline. Latvia is an active partner of the Baltic Sea Region Programme—an EU-based organization that promotes cooperation and solutions among 11 countries around the Baltic Sea.

Roads

To the east, Latvia is one of only three EU countries that have a direct-access border with Russia, making it ideal for east/west trade. The Russian highway M9—the developed road-freight route known as the Baltic Highway—connects Moscow directly with Riga, where it also joins with the Via Baltica highway running north and south between Helsinki and Prague.

Rail

The Trans-Siberian railway connects Riga directly with Moscow, with regularly-scheduled, container-block trains. Latvia and Russia share a common railway gauge and an infrastructure base that continues to facilitate growth in the flow of trade. By 2030 it is planned to complete the Rail Baltic—a unique project of an European-gauge railway line connecting the capitals of the Baltic states and Poland, integrating the Baltics in the European rail network.

Air

Riga International Airport (RIX) is the largest airport in the Baltics with direct flights to more than 60 destinations around the world. RIX is also conveniently located directly connecting with major roads including Via Baltica and the Baltic Highway.

Economics & Politics

Macroeconomic and political stability

Latvia is a fully integrated member of all major economic and political structures, including the EU, NATO, WTO, and OECD. Its position in the global market offers investors both opportunity and stability.

Macroeconomic security

In the wake of the economic crisis in 2008, government has reduced expenses, implemented several pro-business reforms and focused policy on being a reliable partner for investors. Latvia’s government took measures that were successful leading country out of the crisis and laying the groundwork for sustained growth.

Political and legal stability

Latvia is a democratic republic that abides by the rule of law. It is fully integrated into the European Union, applying EU laws and regulations within its legal system.

Cost effectiveness

Latvia offers significant cost advantages to investors, including competitive labour force and real estate expenses, as well as competitive tax rates. Coupled with strong productivity in manufacturing and services, Latvia provides investors with a highly cost-effective environment for business, producing compelling returns on investment.

Contacts

Send your inquiry