Luminor lends €1.1M to fast-growing Latvian timber firm Rēzeknes Mežs

What's the deal? Luminor BankDealroom has a profile for this one. Try Dealroom → has granted €1.06 million in debt financing to Rēzeknes MežsDealroom has a profile for this one. Try Dealroom →, a Latvian forestry and timber company. The package combines a credit line for working capital with a long-term loan.

What's the endgame? The money will fund forest stand and raw material purchases and day-to-day operations. It is meant to help Rēzeknes Mežs increase timber purchasing volumes, build larger stocks, and expand production of higher value-added wood products for domestic and export markets.

Why now? The company has grown quickly. In 2025 its turnover reached €5.27 million, up 93% from a year earlier, while its headcount rose 15% to 35 employees at year-end.

The context: Rēzeknes Mežs has operated in forestry for more than a decade, offering everything from forest purchasing and logging to roundwood processing and the production of lumber, wood chips, and firewood. It is based in Ludza, with operations in Cesvaine and Sigulda, and sells into the European Union and Asia.

"For fast-growing manufacturing companies, it is important to be able to secure raw materials in a timely manner and maintain flexibility in order to take full advantage of market opportunities," said Ilze Zoltnere, head of the corporate department at Luminor Bank in Latvia.

Elmārs Grišuļonoks, a member of the management board at Rēzeknes Mežs, said the financing will let the firm "increase purchasing volumes, build up larger stocks and respond more flexibly to demand in different markets, while continuing to grow our business."

The signal: Luminor, which calls itself the leading independent bank in the Baltic states, is backing a smaller manufacturer with the working capital that fast-growing exporters often struggle to secure. For asset-heavy timber firms, timing raw material purchases is the difference between capturing demand and missing it.

Read more: baltictimes.com

Image credit: Generated with Gemini