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"When the Kohila birch plywood plant gets up and running and its product portfolio stabilizes, the turnover will reach EUR 40 mln in few years," he said.

The plant in Estonia will be making plywood under Riga brand name and export about 95% of the output - to the EU member states and also to the countries in Asia, North America, New Zealand and Australia, the CEO said.

The growth of turnover at the Kohila plant will help boost also the total turnover of Latvijas Finieris group. "We expect to close this year with a 6% growth compared to last year which would be EUR 200 mln," Bikis said.

The group's strategy provides for further growth of the Baltic operations. "In previous years we created production plants not only in Estonia but also in Lithuania and Finland and will continue development also in the coming years. Our investment program launched in 2014 provides for EUR 280 mln of total investments in production development by 2020," said the CEO of Latvijas Finieris.

In 2011, Latvijas Finieris established an Estonian subsidiary, Kohila Vineer, which acquired the assets of a birch wood processing plant in Kohila from SEB Liising leasing company. Total investment by Latvijas Finieris in the Kohila plant has reached EUR 80 mln.

Latvijas Finieris group reported a turnover of EUR 196.502 mln in 2015, up 1.2% from 2014, but its profit fell 15% to EUR 12.763 mln.