LPB Bank provides more than five million euros in financing for a woodworking plant

Over the course of the extended cooperation, LPB Bank has granted financing to a client’s wood processing companies SIA “BS-HOLZ” and SIA “GBM” totalling more than five million euros, which has enabled the establishment and refurbishment of an innovative woodworking plant, along with purchasing of production equipment. In cooperation with AS “Latvijas valsts meži”, the Bank also issues a bank guarantee to facilitate stable supplies of raw materials.

One of the woodworking plants, SIA “BS-HOLZ”, is located in Bīriņi and produces glued-laminate (glulam) beams from pine, oak, eucalyptus and other wood materials for use in windows. The manufacturing process leverages an innovative German technology to prevent window damage, deformation or deterioration. With new technologies, the production line generates high added value with maximum usefulness of wood as the raw material. The production process is constantly being improved. Products are sold to the Baltics, Germany, Denmark, Switzerland, Norway and Finland.

The other plant, SIA “GBM”, is situated in Ciemupe. SIA “GBM” is a leading manufacturer of glulam in the Baltics, specialising in products of non-standard sizes. The company delivers glulam for wooden windows and doors, “Passivhaus” energy-saving beams, glulam load-bearing structures, pine carpentry board, decorative banding, corner fittings, battens, as well as finishing and flooring boards. The company practices zero-waste production by handling the entire wood processing cycle – from sizing lumber to outputting finished products.

The two plants employ around two hundred people with competitive remuneration and social benefits.

Sergejs Baranovs, the chairman of the board of the two companies, notes that to satisfy constantly rising demand, the production capacities should be increased by a factor of two. He has a lot of appreciation for the cooperation with LPB Bank so far, commending its professional managers. With the professional, bespoke approach practised by the Bank and the financing granted to Baranovs’ business, the companies have been able to reach ambitious targets.