“Rettenmeier Baltic Timber” has completed a 160-million-euro modernization project

2025 marks a new page in the Latvian woodworking industry – the fully modernized Rettenmeier Baltic Timber production plant has started operations in Inčukalns. With more than €160 million invested in development between 2019 and 2025, the company has strengthened its position as one of the most modern and powerful woodworking centers not only in the Baltics, but also in Europe. This is one of the largest industrial development projects in the industry in recent years, significantly strengthening Latvia’s competitiveness in the European woodworking sector. 

The German woodworking group Rettenmeier is one of the leading players in the European woodworking industry, operating eight modern production plants in Germany, Slovakia, and Latvia. The company has been present in Latvia since 1993, and the production complex established in Inčukalns currently covers an area of more than 40 hectares, providing employment for approximately 270 highly qualified specialists. A large part of Rettenmeier Baltic Timber’s production is sold in the Baltic States to industrial customers and building materials manufacturers, as well as supplied to building materials retail chains such as Depo, Kurši, and K-Senukai. Materials produced in Latvia are also exported to European Union countries, including Germany and Italy. 

Focus on efficiency and sustainability 

The large-scale investment project, implemented in several stages and completed this year, has enabled the complete modernization and expansion of the Inčukalns production facility. A new, high-capacity sawmill with a planned output of more than one million cubic meters per year has been built, along with a high-performance log sorting line and a modern planer line for further product processing. The wood pellet production plant, where wood waste is processed into value-added products, has also been expanded and modernized. 

At the same time, drying capacity has been significantly increased, and heat recovery and biomass cogeneration solutions have been introduced, improving energy efficiency and reducing the environmental impact of production. The plant is equipped with the latest generation of technologies to ensure the most efficient and sustainable use of wood. 

“Automated machine vision systems scan each log three-dimensionally and use X-ray images to accurately determine its quality and structure, while artificial intelligence algorithms identify the wood species. The new equipment analyzes the material with micro-precision and determines the most rational application for each log. This significantly increases productivity, improves the quality of the final product, and reduces losses to a minimum,” explains Rolands Rimicāns, CEO and member of the board of Rettenmeier Baltic Timber. 

The key to competitiveness  

The modernization of the Inčukalns complex is strongly focused on sustainability and energy efficiency. According to the company’s management, the entire production cycle is designed to ensure the full utilization of wood resources, including bark, wood chips, and other by-products. Pellets and briquettes are produced from wood residues, while heat generated during the timber drying process is recovered and reused for heating production facilities and supporting technological processes. These solutions significantly reduce the company’s environmental footprint and have become an important competitive advantage. 

“The last few years have not been easy for the woodworking industry – declining construction activity in Europe reduced demand and product prices, placing considerable pressure on companies across the sector. Investments in production modernization have become the key to our competitiveness: they reduce losses, enable maximum utilization of materials and resources, and ensure stable efficiency even in challenging market conditions. Thanks to these investments, we have become significantly stronger,” emphasizes R. Rimicāns. 

Preserving jobs through training 

Although the modernization introduced a high level of automation and significantly reduced manual work, this did not lead to a reduction in the number of employees. “An important part of the modernization process was the training of existing staff, providing opportunities for professional development and broader specialization. At the same time, the working environment has become more modern and ergonomic, making us an even more attractive employer,” explains R. Rimicāns. 

In the coming years, the company plans several additional development projects aimed at further improving energy efficiency and production processes, although these will require more moderate investment levels. 

Wooden construction in Europe is developing rapidly and regaining an important role in the construction sector. This growth is driven by modern timber materials and technologies, including CLT panels, which allow wood to be used even in complex projects such as multi-storey buildings. Wood is also considered one of the most effective carbon storage materials – one cubic meter of wood can absorb approximately one ton of CO₂, making it an environmentally friendly alternative to traditional building materials. With sustainability and environmental requirements continuing to increase, the role of wood in construction is expected to grow further, and the company views future development opportunities with confidence and optimism.