Update – January 10, 2024
On January 9, HS Timber Group announced that it would acquire the Latvian sawmill Vika Wood from Bergs Timber. Vika Wood has a production capacity of 300,000 m³ of softwood lumber per year. As a result of the acquisition, HS Timber Group will gain two places in the ranking of European softwood lumber producers.
In the Holzkurier’s 2024 survey, HS Timber Group stated a planned production output of 2.05 million m³ of softwood lumber for 2024. This puts the group in seventh place alongside Rettenmeier Holzindustrie. With the takeover of Vika Wood and at full capacity, HS Timber Group would take fifth place from Moelven with a production volume of 2.35 million m³ a year. Including Vika Wood, HS Timber Group now operates six sawmills worldwide: Radauti/RO, Reci/RO, Kodersdorf/DE, Luvia/FI, Virasoro/AR and Talsi/LV.
Original article – January 9, 2024
The sawmill, whose products are internationally known under the Vika brand, is located near Talsi in western Latvia. The brand, management and business activities of Vika Wood will remain unchanged. CEO Haralds Kronbergs will further develop Vika Wood together with his experienced local management team, as the group informs. When signing the purchase agreement, HS Timber Group announced that it will continue to move investment projects and development plans forward. Both parties have agreed to not disclose the terms of the transaction.
With an annual production capacity of up to 300,000 m³ of kiln-dried lumber and around 140 employees, Vika Wood is one of the largest sawmills in the Baltic region and an important employer in western Latvia. The sawmill, which was founded in 1995, processes locally sourced softwood logs from sustainably managed forests, which makes it a valuable addition to HS Timber Group’s portfolio of products and markets.
“This acquisition fits in seamlessly with our strategy to grow sustainably. By having access to high-quality raw materials and entering the attractive Baltic market, we can serve our customers even better”, Jürgen Bergner, CEO of the HS Timber Group, says. “The divestment of Vika Wood is in line with Bergs Timber’s strategy to focus on more consumer-oriented products. Vika Wood has a good reputation, and we thank Harald Kronbergs and his team for the successful years with Bergs Timber. HS Timber Group is a promising new owner with a clear vision to continue investments and to further develop the Vika Wood organization and brand”, Peter Nilsson, CEO of Bergs Timber, comments.
Vika Wood specializes in high-quality softwood lumber, which is sold in more than 30 countries. The sawmill also plays a crucial role in the regional value chain, by supplying byproducts to pellet producers and the pulp industry.
