In early July, SIA Kronospan Riga, a subsidiary of the Kronospan Group, a wood-based panel manufacturing company, acquired KS Terminal, the fourth-largest cargo terminal in the Port of Riga.
This acquisition establishes SIA Kronospan Riga as the sole shareholder of KS Terminal, enhancing its operations in Northern Europe and creating strategic growth opportunities for the Latvian terminal.
By late July, Kronospan Group's general cargo vessel, Spanaco Adventure, arrived at KS Terminal to transport wood-based panels, produced at Kronospan Riga, to the United States. The vessel, measuring 199 meters in length and 30 meters in width, carried 40,000 m³ of Latvian particleboard destined for the ports of Baltimore and Houston. This marked the beginning of regular cargo shipments from Riga to the US, facilitating the delivery of Kronospan Riga products to the American market.
"The entry of a major global player such as Kronospan Group into the service-providing business of the Port of Riga is undoubtedly a very positive factor. For KS Terminal and the port as a whole, it provides a more stable cargo base and a more secure outlook for the future. At the same time, closing the Kronospan deal signals to other foreign investors that the business environment and investment conditions in the Port of Riga are favourable, secure and suitable for long-term projects," stated Ansis Zeltiņš, CEO of Freeport of Riga.
Vivita Vāvere-Ozola, Member of the Board of Kronospan Riga and KS Terminal, highlighted that the terminal's acquisition aims to ensure seamless export of Kronospan's products to the US, United Kingdom and Scandinavian countries, support raw material logistics for the factory, and attract new customers to maximize terminal potential.
Concurrently, an investment plan is underway to modernize cargo handling, ensuring high service levels for terminal clients, according to Vāvere-Ozola.
KS Terminal handled 670,000 tonnes of various cargo in the first half of 2024, representing 7.6% of the total turnover of Riga port. Timber, agricultural bulk, chemical bulk, and stone rubble are the primary cargo groups, with timber comprising about one-third of the terminal's total volume, showing significant growth in recent months.
Austrian-based Kronospan Group operates 41 manufacturing facilities worldwide and offers a diverse product portfolio, including particleboard, MDF, laminate flooring, OSB, chemicals, and logistics services. Since 2005, the company has been manufacturing wood-based panels in Latvia under SIA Kronospan Riga at its Bolderaja facility.
