A time capsule is embedded in the foundations of AmberBirch’s new veneer production plant

The company operating in Jēkabpils Municipality AmberBirch began construction of its new veneer production plant in June of this year. On Wednesday, July 24, a time capsule with a message for future generations was embedded in its foundations. The ceremonial time capsule embedding event was attended by AmberBirch Chairman of the Board Raimonds Spūls-Vilcāns, Jēkabpils Municipality Council Chairman Raivis Ragainis, and Pillar Contractor Chairman of the Board Jānis Lāčaunieks. 

By mid-2025, AmberBirch will invest more than 40 million euros to double birch veneer production capacity, begin producing higher-quality veneer products, and diversify its range. It is planned that already in the second half of 2025, AmberBirch, SIA will be able to produce up to 90,000 cubic metres of veneer per year. Increasing production capacity and installing new technologies also means creating additional jobs, increasing the number of employees at the plant from 85 to 130.

Launching the investment project, in February of this year AmberBirch signed a contract worth 20 million euros with the Finnish company Raute Corporation for the supply of technology with a particularly high level of production cycle automation. Raute Corporation’s technology order includes all the main veneer production process lines: a log infeed line, a veneer peeling line, and a veneer drying and sorting line, visual defect and moisture content analyzers, and MillSIGHTS MIS software.

The new equipment will not only allow the company to increase its production capacity, but also to enter new market segments and create a competitive technological base for production. It will be possible to develop new strategic product lines in order to take advantage of the growing opportunities in the European Union market for engineered wood products, in line with EU CO2 goals, guidelines, directives and regulations. A further 20 million euros will be invested within the project in the construction of a production facility with a total area of 10,000 m2, the creation of steam chambers, the expansion of the log yard, and the purchase of round timber transport equipment.

The investments in the AmberBirch, SIA production facility are planned to be covered from the company’s own funds and by attracting external financing. The construction of the new production facility will be carried out by the company Pillar Contractor.

More than 10 million euros have been invested in the AmberBirch production facility to date, also using funding from the European Regional Development Fund (ERDF), as well as receiving co-financing from the Parallel (Mezzanine) Loan Programme implemented by the state-owned development finance institution ALTUM. In order to increase the added value of both the company and the products it manufactures and to become a significant exporter, AmberBirch has obtained the international wood supply certificate FSC® (NC-COC-066790; FSC®-C170393) as well as the PEFC environmental quality certificate. In its production cycle, AmberBirch uses renewable energy resources – in 2023, 850 thousand euros were invested in the creation of a solar panel park with a capacity of 1 MW.

AmberStone Group, AS is a holding company established in 2013. It has holdings in healthcare, hospitality, agriculture, construction and wood processing companies in Latvia and Estonia.

AmberBirch, SIA was established in 2016 and is a 100% subsidiary of AmberStone Group, AS, which in 2016 began developing a birch veneer production plant in the Jēkabpils region. The factory began operations in 2019, becoming one of the largest specialized veneer producers in the region. AmberBirch, SIA produces multifunctional veneer suitable for various customer segments, including manufacturers of furniture components and plywood. AmberBirch’s goal is to become a significant European-level producer in the market for various environmentally friendly engineered wood products, while contributing to the achievement of the European Union’s climate neutrality goals.

AmberBirch, SIA’s turnover in 2023 exceeded 26 million euros, with unaudited profit of 4 million euros. Last year, the company paid 998 thousand euros in taxes, excluding VAT.

More information is available on the websites www.amberstone.lv, www.amberbirch.lv.