Latvian businesses are out-competing construction companies in Sweden
Latvian businesses are out-competing construction companies in Sweden
The wood industry currently accounts for approximately one fifth of all goods exported from Latvia and 30% of the total production of the manufacturing sector. Timber construction services and timber construction materials have become a major export for Latvian companies. Thanks to its ability to offer high quality solutions, innovative materials and sustainable construction expertise, the Latvian construction sector has been successfully working with the Nordic countries, especially Sweden, for quite a long time already. In turn, clients in Nordic countries appreciate the flexibility, competitive prices and knowledgeability about modern construction requirements provided by Latvian businesses.
In 2024, the total volume of exports from Latvia to Sweden exceeded EUR 1 billion with a significant portion of this being timber and wood products. At the same time, Swedish imports in Latvia totalled EUR 707 million, thus attesting to the close economic ties between the two countries. The highly developed ports in the Baltic Sea, daily flights between Riga and Stockholm, and efficient logistics infrastructure ensures stable and profitable supply chains for construction projects in Sweden.
An important advantage that Latvia has to offer to Sweden is its expertise in sustainable construction, especially as it pertains to wooden structures which are becoming increasingly popular in the Nordic countries and throughout the rest of Europe as well. Our companies have specialised in cross-laminated (CLT) and glue-laminated timber (GLT) structures allowing for a significantly different approach to environmentally friendly and energy efficient building solutions. These technologies are extensively employed in the construction of apartment buildings, offices and even multi-storey buildings in perfect compliance with the ambitious sustainability targets set forth by Sweden.
Success depends on detailed understanding of the Swedish market
Latvian company ZAZA TIMBER is one of the leading manufacturers of timber building structures and is actively engaged with the Nordic markets, particularly Sweden, Denmark, and Norway. Not only does the company manufacture timber building structures, but it also offers design and construction services. Foreign markets are important for the company as approximately 60% of its revenues come from projects outside of Latvia. According to Māris Peilāns, Chair of the Board of ZAZA TIMBER, this ratio could actually be even higher as some of the company’s customers are Latvian construction companies working abroad.
Even though the Nordic construction market has slowed down lately as demonstrated by data on the number of construction permits issued, ZAZA TIMBER continues to successfully find projects in line with the company’s specialisation. Instead of standardised products the company is focused on manufacturing large-scale and complex wooden structures, even up to 32 metres in length which are often curved or require high-precision CNC processing. These structures are delivered ready for final assembly with already integrated steel fixings and coated surfaces. It is this unique approach that distinguishes ZAZA TIMBER in the market: even other manufacturers recommend the company’s services for the most complicated projects.
An important advantage that the company has is being able to provide several services together, such as design and manufacturing or even the full cycle from design to manufacturing, to assembly. This greatly simplifies things for the company’s customers and makes ZAZA TIMBER an attractive cooperation partner.
In Sweden, the company has carried out several major projects. The first of these was a 65-metre-long wooden bridge for pedestrians and cyclists in Linköping which is not only highly functional, but also, due to the chosen material, seamlessly blends into the surrounding environment. In the same city ZAZA TIMBER’s designers have also created a student dormitory: a seven-storey building with a detailed timber finish and an area of 4640 m2. In turn, in Järna the company recently completed works on a new concept Circle K electric charging station where they supplied the design, the manufacturing and the construction of the project.
The company highlights that a key factor in securing these orders is their design competence, manufacturing specialisation and the ability to provide customised solutions. ZAZA TIMBER has more than five years of experience with projects for designing, adapting, manufacturing, and constructing original electric charging stations. For example, in Denmark and Norway, the company has already built more than 170 charging station roof modules in 25 different locations. The company is also no stranger to bridge-building with its structures being used in more than 30 bridges in the Nordic countries and Latvia.
ZAZA TIMBER has accumulated extensive experience in the Nordic countries and therefore is very familiar with the local practices, working culture and rules, which they view as an invaluable asset. For example, to operate successfully in Sweden, the company has concluded a contract with Swedish Building Workers’ Union and complies with its rules which is a key requirement for a business to be successful in this market.
ZAZA TIMBER is continuing to develop and invest in manufacturing large-scale laminated timber structures by taking part in projects of various size and complexity throughout Europe. The company believes in the future of timber buildings because they are steadily gaining popularity in Latvia and elsewhere in Europe due to the innovative and sustainable solutions they present in modern construction.
Increasingly broader opportunities in timber construction driving growth
Latvian group CLT Profi, which consists of companies CLT Profii, Cross Timber Systems and Steel Profi, is one of the leading CLT (cross-laminated timber) manufacturers and construction service providers in Europe. The group specialises in designing, delivering and assembling multi-storey buildings and public buildings in export markets, and also offers professional sheet metal processing services. Exports account for approximately 90% of the group’s total turnover with the main markets being European Union member states, especially Spain, Denmark, the Netherlands, Belgium and Germany.
Sweden is an important market for the group, and it has carried out several major projects there. One such project was the construction of the innovation centre building for LKAB, the leading iron ore miner in Europe, in Luleå. While construction in Europe and Scandinavia has recently slowed, CLT Profi stresses that demand for high value-added timber products is continuing to grow. Solid wood structures are becoming increasingly popular due to the significant advantages they provide: sustainability, energy efficiency and the opportunity to reduce CO2 emissions in construction. Hybrid-timber construction solutions combining CLT with other materials provide higher efficiency and customisability for different designs.
“Hybrid-timber construction solutions are also rapidly gaining ground: these involve the combination of CLT and other materials to attain higher efficiency and customisability. Demand for timber buildings is also boosted by increasingly stringent requirements regarding reduction of CO2 emissions in construction, as well as digitalisation allowing for precise modelling and optimisation of timber structures,” Andris Dlohi, Member of the Board of CLT Profi, explains.
Over the course of the last ten years, CLT Profi and its subsidiaries have implemented around 800 construction projects throughout Europe: from private residences to schools, kindergartens, and multi-storey apartment complexes. CLT material manufactured by the company has even been used in the construction of the Belgian polar research station in Antarctica. “I believe that our main competitive advantage is our full range of services: design, manufacturing and assembly,” Mr Dlohi says.
Timber has historically been a popular construction material in Sweden and other Nordic countries, and thanks to innovative solutions and the increasing importance of sustainability in construction CLT Profi is determined to continue enhancing its presence in the Nordic markets.
Focusing on exports
Latvian company Nordic Homes is a leader in timber frame modular construction with a particular focus on exports. The company’s main market is Europe, including Sweden, Iceland, Germany, the United Kingdom and the Faroe Islands. Nordic Homes modules provide effective, quick and high-quality solutions in line with Swedish construction standards and sustainability requirements; the company has successfully taken advantage of the popularity of modular construction in the country,
and has implemented several notable residential projects there. One such project was carried out in Höganäs where in 2017 and 2018 the company built two row-house projects consisting of a total of 47 houses. In Höganäs, Nordic Homes also took part in the construction of five 3-storey buildings. In recent years, the company has accumulated more experience in Sweden allowing it to take part in increasingly ambitious projects, including the construction of multi-storey buildings. One of the biggest of these is an apartment building complex in Hoor consisting of two 4-storey and 5-storey buildings with a total of 43 apartments. In turn, in Borlange the company took part in the construction of three 3-storey buildings with a total of 58 new apartments, while in Trelleborg they helped build a 4-storey residential building with 23 apartments.
Nordic Homes have proven their capacity and ability to adapt to different construction projects by taking part in so-called ‘white label’ projects. In this framework, the company has manufactured modules for another module manufacturing company delivering a total of 66 modules for the construction of three apartment buildings in Sweden.
The company emphasises that the role of automation and green energy solutions is expected to increase moving forward. “Timber is gaining popularity as a construction material, particularly in the Nordic countries and elsewhere in Europe, where requirements for sustainable construction are being raised. This is, of course, a very positive trend for our company. We expect that, in future, wood will be used more and more in the construction of multi-storey and industrial buildings due to its ecological advantages and availability of modern technologies,” Linda Okmane, Sales Manager at Nordic Homes, explains.
