The mill, which has an annual production of 280,000m3 and sales of LVL35m, is being sold to Iceland-based Norvik for an undisclosed sum.
Hebeda Trä said it decided to search for a new owner after a strategic review of Vika Wood and the need for it to concentrate on its Swedish business.
About 85% of Vika Wood’s sales are exports, with Japan a prime market.
Norvik already owns the BIKO-LAT SIA and CED SIA wood processing business in Latvia with about 600 employees. It also has forest operations and a smaller sawmill in Russia’s Komi republic, as well as UK wholesale timber distribution through subsidiaries.
The share purchase agreement is subject to clearance from the Latvian Competition Authority. The current Vika Wood management will continue to run the operation within the Norvik group.
