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International Internet Magazine. Baltic States news & analytics Saturday, 24.02.2018, 19:57

Rigas Mezi in coming years plans to invest EUR 8 mln

BC, Riga, 09.02.2018.Print version
Rigas Mezi municipal forest manager in the coming years plans to invest EUR 8 million in production, a new sorting line and a new office building, the company’s board member Edgars Vaikulis reported LETA.

He said that the company plans to build a new plant in its Norupe sawmill with a new sorting line and new administrative building. Later a new production line will be installed to create products with higher added value.

 

"Our estimates are that investments might reach EUR 8 million. It seems much against our present turnover, but it is an investment of several years with a proved increase in turnover that will compensate for the invested resources," said Vaikulis, adding that it is planned that the investments will be returned in ten years at most.

 

As reported, the company plans to purchase advanced production equipment for Norupe sawmill and also intends to start production of wood chip pellets in the future. Rigas Mezi also intends to start selling heat energy produced by the company.

 

At present Rigas Mezi was processing around 25% of timber logged in its forests and selling the rest on the round timber market but it is planned to increase the share of processed timber to 40% by 2022.

 

According to preliminary results, Rigas Mezi last year generation EUR 18.4 million in turnover. In 2016 Rigas Mezi posted EUR 14.95 million in turnover and EUR 227,704 in profit. The company was registered in 2008, its share capital is EUR 115,156,021.

 

Rigas Mezi manages 62,000 hectares of forests and is the second largest forest management company in Latvia after Latvijas Valsts Mezi (Latvian State Forests). The company owns tree nurseries, Norupe sawmill and also manages Mezaparks and other Riga parks and gardens.

 






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