If the economy of Latvia is closely linked to softwood products, then one name dominates the whitewood product landscape: Gaujas Koks SIA. GK is private independent forest product company based near Sigulda, central Latvia, which has over 19 years of commitment to quality forest products.

Originally, Vitaly Chmihov the director of GK opened his first mill near Sigulda town in 1990. However, it was too small employing four people and had a few second hand machines. Within next four years, despite fierce competition from thousands of other Latvian sawmills the company showed continuous growth and it's ability to survive. From the outset, continuous investment and improvement to equipment has been maintained to increase quality, production volumes and efficiency. Manpower rose to 54 and timber production reached 20.000 cub. m. annually.

In 1999, operating from Gauja sawmill alone GK was fourth largest Latvian timber producer with output of 40.000 cub. m. of kiln dried graded and fresh-sawn timber. The significant development, which boosted the production volumes, was new environment-friendly 140.000 cub. m. per year powerful softwood sawmill near Gulbene, East Latvia. Launched in 2001, it has it's own power plant which transforms mill’s residues into electricity and hot water used in twelve drying chambers and three tunnel-type drying kilns. The design, layout, selection and installation of the machinery were carried out under the direct control of the company's engineers. Production line comprises of modern machinery: log sorting line, debarking station, one-pass canter-circular saw line, green sorter, stacker. Machine vision and computer control are essential. 100% of produced timber is kiln dried.

Still on the expansion trail, the company bought another operation facility to develop it's own wood pressure-treatment plant. Alongside these plans, the company is preparing to launch a new mill, which is now under construction. The capacity of the mill is planned 500.000 cub. m. of planed timber annually, which is likely to be the biggest sawmill in Baltics. Besides, gluelam factory at the same place is under consideration.

Some of the best forest in Latvia is found in the areas in which the company operates - Vidzeme and Latgale. GK sources its raw materials from within a 150 km radius. This cuts down the transport time from point of harvest to sawmill, thus reducing possible damage of the timber. Today GK's strategy is to become more efficient and more modern, while constantly defending it's position.