Latvijas Finieris starts construction of a natural resin factory in Riga

Construction of an innovative natural resin factory is under way in the Bolderāja neighbourhood of Riga; the new factory promises to significantly reduce use of fossil raw materials in production and promote sustainability in Latvia. The project is being implemented by Latvijas Finieris with the aim of producing environmentally friendly synthetic resin from a natural and renewable wood component lignin which is a much more eco-friendly alternative to fossil-based phenol. The resin produced at the factory, which is the first of its kind in the Baltics, will be used in the manufacturing of furniture, flooring, sandpaper, insulation and other products. 

The new factory will be located at Finiera iela 6, and its planned annual production capacity is 45,000 tonnes. Scheduled to be completed by spring of 2026, the factory will be equipped with the latest technologies allowing for industrial scale production of resin from lignin.  

Latvijas Finieris have themselves crafted the adhesive used in production of birch plywood where ligning partially replaces phenol, and the company has already been marketing various birch plywood products under the brand Riga ECOlogical for several years. The company reveals that further research and the decision to build the factory is the logical continuation of years of work. With the construction of the resin factory Latvijas Finieris will be able to manufacture its products using only eco-friendlier adhesives. 

“Not only does this project promote the competitiveness of Latvia’s industry, it also contributes in the transition to renewable resources. Use of lignin in the production of synthetic resin is an important step towards reducing the use of fossil raw materials while also creating products with a high added value. No to oil, yes to wood! Taking into consideration that one of our strategic priorities is to expand cooperation with scientific institutes, this factory and project will be a centre for bio-innovation combining research and production to develop sustainable solutions for future generations,” Jānis Ciems, Chair of the Board at Latvijas Finieris, explains. 

The new factory is being constructed as part of the VIOBOND international research consortium project which has brought together eight partners from five European Union member states and is led by Latvijas Finieris. The main objective of VIOBOND is to develop the use of the natural polymer lignin in the production of high added value products by using this renewable raw material to partially or completely replace fossil-based phenol which is a by-product of petroleum processing. 

The total research budget for the VIOBOND project is EUR 32 million of which EUR 16 million is provided by a grant from Horizon 2020, the European Commission’s research and innovation funding programme, while the rest is contributed by the companies involved in the project. Latvijas Finieris will use EUR 16 million for research in the framework of this project, of which EUR 8 million will be co-funded by Horizon 2020. In turn, the investments by Latvijas Finieris for the construction of the new factory total around EUR 40 million. 

The core business of Latvijas Finieris is the production, research and development of birch plywood products under the brand name Riga Wood. The company has veneer and plywood factories in Latvia, Lithuania, Estonia, and Finland, and its products are delivered to customers from various sectors of industry in 70 countries around the world.  

Birch plywood is used, for example, in concrete form systems and scaffolding, stage construction, interior design, including decorative wall and ceiling trim, woodworking products, furniture and retail equipment, vehicle flooring, walls and shelves, on sea vessels and in high quality packaging. Other important business areas for the group include sale of panel material, forestry and logging, as well as production of synthetic resin.