In 2023, the combined turnover of three companies within the CLT Profi group reached €22.1 million, a 6% increase from 2022.
Specifically, CLT Profi, specializing in cross-laminated timber panel design and construction of wooden buildings, concluded 2023 with a notable turnover increase to €11.31 million (+43% compared to 2022) and €918 thousand in profit, 133% higher than the previous year. This growth was mainly facilitated by attracting new clients, executing larger projects, and actively collaborating with existing customers. The company is forecasting stable financial performance also in 2024.
Meanwhile, another group entity, Steel Profi, achieved a turnover of €2.89 million last year, a 17% decrease compared to 2022, but closed the year with a profit of €57 thousand. The third entity Cross Timber Systems concluded 2023 with a turnover of €7.9 million and a loss of €170 thousand, which occurred before changes in the company’s ownership structure.
Significant Investments
In the past year, CLT Profi made substantial investments by acquiring 67.04% equity in the 10,000 m2 large mass timber panel production facility of Cross Timber Systems in Jelgava, thereby becoming its largest shareholder. Significant enhancements were made to the production equipment in this facility, significantly boosting production efficiency.
“In the construction and building materials manufacturing sector, 2023 has been relatively stable and predictable. We adapted to changes in demand, focusing more on Central European countries. Market fluctuations are also less pronounced compared to previous years. Furthermore, significant investments in acquiring the Jelgava mass timber panel production facility and modernizing production equipment have greatly enhanced our manufacturing capacity and efficiency. We are confident that 2024 will be equally successful as interest in our projects and products continues to grow,” said Andris Dlohi, CEO of CLT Profi.
Projects of 2023
In 2023, CLT Profi supplied 16,000 m3 of CLT panels to customers, executing 81 construction projects in 14 different countries, including Estonia, Sweden, Norway, the Netherlands, Germany, and the USA. Three of the residential projects in the Netherlands were nominated for the prestigious National Timber Building Award. In Latvia, the Ogre Central Library received the “Most Energy Efficient Public Building” award last year, and the “Architecture of the Year” award was given to the wooden office building “AVOTI”.
CLT Profi largest projects in 2023 included the construction of the 5,500 m2 Elkab Laboratory and Innovation Center in Luleå, Sweden, the 1,400 m2 expansion of the EMMA HJORT school in Sandvika, Norway, and a village with 14 family homes in Zeist, the Netherlands. Meanwhile, Steel Profi continued successful collaboration for the second year with Finland’s defense industry company Patria.
Collaboration with Educational Institutions
To promote innovation in timber processing and the production of value-added products, CLT Profi started a collaboration with Vidzeme University of Applied Sciences to provide internship opportunities and to contribute the “Architecture and Construction” study program content. Additionally, the company began collaborating with Riga Business School by participating in their Advisory Board for evaluating business study programs. Company also extended its partnership with Riga Technical University‘s Faculty of Civil Engineering for providing lecture content and on-site visits to the company’s production facility.
“We are convinced that collaboration with educational institutions is essential to cultivate a strong and highly qualified new generation of engineering specialists. This is a prerequisite for Latvian businesses to offer high-quality products and innovative solutions in foreign markets. Therefore, collaboration with Latvia’s leading universities is one of our priorities,” added A. Dlohi.
About CLT Profi Group Companies
The CLT Profi group includes CLT Profi, Cross Timber Systems, and Steel Profi. The group employs more than 100 people overall.
CLT Profi specializes in the design, supply, and assembly of cross-laminated timber materials, primarily for multi-residential and public wooden buildings in export markets. The company is the largest exporter of CLT panels in Latvia, with 95% of its products being sold in more than 14 European countries. The company also produces private homes, mainly exported to Norway and Iceland. The usage of CLT panels in building construction ensures significantly shorter construction time, efficient logistics, and economic advantages by generating less construction waste. Moreover, CLT panels are a considerably more sustainable material compared to other construction materials.
Meanwhile, Steel Profi specializes in professional sheet metal processing services, ranging from cutting and bending to welding and surface treatment. Approximately 50% of their production is exported to various countries worldwide.
