July 13, 2026

The following is a press release from Luminor Bank:

Luminor Bank continues to support the growth of the forestry company Meža Cikls by providing an additional four million euros in financing for the acquisition of new machinery, working capital, and an increased credit facility, ensuring the company has the resources required to support its continued expansion in both domestic and export markets.

“Forestry and the wood-processing industry are among Latvia’s most important export sectors. In recent years, the industry has faced significant market changes, including price and demand fluctuations, the impact of geopolitical developments, and changing economic conditions. In this environment, long-term growth depends on companies that are able to adapt to market dynamics, expand their operations, and seize new growth opportunities. Meža Cikls has a clear vision for its future development, with a strong focus on strengthening its technical capabilities, expanding its professional team, and growing its presence in export markets. We are pleased to continue our cooperation with the company by providing financing that will support its next stage of growth,” Ilze Zoltnere, Head of the Corporate Department of Luminor bank in Latvia.

As part of the leasing financing, Meža Cikls will expand its fleet with a forwarder and two new harvesters, enabling the company to carry out all of its logging operations using its own machinery. The increase in the company's credit line and factoring facility will provide additional working capital for the acquisition and resale of logging sites and timber in Latvia, the Baltic States, and the European Union, while also supporting export development in Asian markets and the company's long-term sustainable forestry strategy, including forest regeneration and the expansion of its forest asset portfolio.

The management of Meža Cikls emphasizes that since the company's establishment, it has consistently worked towards becoming a reliable full-service partner in the forestry sector. Even in a changing market environment, the company's priorities remain maintaining flexibility, continuing its development, and pursuing new business opportunities while strengthening its position both domestically and internationally. Despite competing with long-established industry leaders, the company has successfully attracted highly qualified forestry specialists and experienced machinery operators, growing its team to 56 employees. Since partnering with Luminor in 2023, Meža Cikls has significantly expanded its machinery fleet through financing for the acquisition of more than 20 machines and vehicles. The additional financing marks the company's next important development milestone, enabling continued investment not only in machinery but also in working capital and the expansion of business operations, including further export growth in European and Asian markets where the company has already gained initial experience.

In recent years, Latvia's forestry sector has experienced significant volatility driven by inflation, the war in Ukraine, and rising interest rates. However, in 2025 the industry showed signs of moderate recovery alongside stabilising roundwood prices. Experts expect cautious growth to continue throughout 2026. Under such market conditions, companies' success increasingly depends on effective inventory management and the ability to maintain stable cash flow – areas that are directly supported through access to additional financing instruments.

About Meža Cikls

Meža Cikls is a forestry company founded in 2020 that provides full-cycle forest management and logging services. The company’s operations cover the entire forestry cycle, including soil preparation, tree planting, young stand maintenance, silvicultural maintenance, tree protection, logging, and timber transportation. The company operates offices in Daugavpils and Sigulda, as well as a technical base and timber storage facility in Sigulda.

About Luminor

Luminor is the leading independent bank in the Baltic states and the third largest provider of financial services in the region. We provide financial services to individuals, families and enterprises. We are new, dynamic and forward-looking just like Estonian, Latvian and Lithuanian markets.

Additional information:

Inese Kronberga

Luminor PR Project Manager

Phone.: 29215409

E-mail: Inese.Kronberga@luminorgroup.com