OP Corporate Bank grants EUR 5.5 million financing for Stiga RM's forest property acquisition
OP Corporate Bank has granted EUR 5.5 million in financing to Stiga RM, one of Latvia's leading wood industry companies, for the acquisition of forest properties. The company plans to acquire nearly 2,000 hectares of forest land, bringing the total investment volume to approximately EUR 8.5 million.
Of the total investment amount, EUR 3 million will be financed with Stiga RM's own capital, while EUR 5.5 million will be provided through financing from OP Corporate Bank.
The planned acquisition forms part of Stiga RM's long-term development strategy aimed at expanding its forest property portfolio and strengthening its independence in securing raw material resources. Currently, the company manages approximately 13,500 hectares of land, the majority of which is forest land. Following the transaction, the total area under its management will increase to nearly 15,500 hectares.
“We are pleased to continue our long-standing cooperation with Stiga RM. We highly value the company's focused approach to development and its commitment to investing in long-term value creation. Expanding the forest property portfolio strengthens the company's independence in securing raw materials and provides a solid foundation for future growth, while also supporting investment in the development of Latvia's forestry and wood processing sector,” says Elmārs Prikšāns, General Manager of OP Corporate Bank plc Latvia Branch.
“We clearly recognize that, alongside the rapid increase in harvesting volumes, which in the case of Stiga RM already exceed 500,000 cubic metres per year, it is strategically important to continue expanding our forest property portfolio. In Stiga RM's view, forests are a strategic reserve of Latvia that must be managed with a long-term perspective, growing forest value over time. Forests represent value in themselves, and when managed sustainably, they also provide the foundation for the production and export of high-value products. By combining wood with our expertise and the opportunities offered by modern technologies, we manufacture high-quality, globally demanded products at our birch plywood factory in Kuldīga and our acoustic panel factory in Tukums,” emphasizes Andris Ramoliņš, Owner and Chairman of the Management Board of Stiga RM.
Stiga RM is a family-owned company based in Tukums and was founded in 1994. Today, it is one of Latvia's leading companies in the wood industry. Across its 13,500 hectares of owned land, most of which consists of forest land, the company carries out the full forestry cycle, from planting trees to producing and exporting high value-added products to more than 50 countries worldwide.