Following its recent US$40m investment in a new wood fibre factory, JELD-WEN Windows and Doors is now one of Latvia’s largest investors. First attracted to the country to set up a northern European manufacturing operation in 1994, JELD-WEN is now a major economic and social stalwart of the tight-knit community of Aizkraukle, 90km south of Latvia’s capital Riga.

With an already successful internal and external door blanks and fully-finished doorset plant, JELD-WEN decided to extend its presence in Latvia by building a new wood fibre processing factory as a greenfield development. Aizkraukle’s main local economy is built on forestry products and woodworking (as well as power generation, printing and agriculture), making a wood fibre processing plant a natural decision for the area.

The development, scheduled for completion in 2006, will create particleboard door skins and panels destined for use in JELD-WEN’s own local door manufacturing facilities and its other European operations, including those in the UK.

Meanwhile, as work goes on with the new factory, which is set to employ more than 80 people, the company’s existing door operation continues to go from strength to strength.

JELD-WEN produces thousands of new doors every week at Aizkraukle, of which around 80% are internal doors and 20% for external use – and, with harsh winters a way of life in the region, quality of construction and durability come with the package.

No-dent doors

JELD-WEN Latvia’s exterior doors are the country’s first “no-dent” doors using advanced, fusion-crafted wood-composite technology, which also resists rotting, rusting of metal fixings and warping. Manufactured with laminated veneer lumber and insulated with a high-density core, the doors’ construction withstands the harshest of climates. Steel-reinforced timber doors are also in demand.

The interior door side forms a large proportion of the company’s output. Just as in the UK, the Latvian market places heavy emphasis on ease of installation. This explains the tremendous growth in fully-finished doorsets, which are pre-hung within their frames, allowing excellent first-time performance when installed. This means that door installation is not only faster, it also allows on-site labour cost savings. The company successfully sells these products not just locally, but also throughout northern Europe, including the Baltic states and Scandinavia.

JELD-WEN’s decision to invest further in Latvia followed a detailed review of other European locations. Co-ordinating general manager Brett Dodson explained why Latvia was the final choice: “Since our original investment in Latvia in the mid-90s we have enjoyed an excellent relationship with the local authorities and the community. Favourable investment and tax incentives, combined with a workforce that’s well-educated and dedicated to quality, had a very positive influence on our decision to continue our growth in Latvia.”

Recycled waste

The wood fibre plant will be recycling woodwaste from JELD-WEN’s existing door factory, along with those of other timber-based businesses in the area. This locally sourced material, mostly consisting of indigenous fast-growing pine and birch, will be ground to a pulp then surface-sprayed on a linear run to create 2.1m sheets of 3mm thick particleboard. The material, which is moulded with a wood-grain effect, will then be used locally or shipped to other JELD-WEN plants in Europe to be precision cut to size for use as door skins or panels.

The new factory is part of JELD-WEN’s overall strategy to strengthen its European position, the Aizkraukle plant investment making JELD-WEN one of the top four investors in Latvia.