AS Rait has been in business for more than 10 years – ever since Estonia regained its independence. Managing director Ivar Dembovski explained: ‘Initially the company was a small consulting activity and an intermediary for subcontractors. Today we employ more than 100 people and have a turnover of €10m per year.’

Rait sees itself as a niche producer aiming to add value and steers clear of being a mass commodity producer.

‘In the past 10 years our dynamic team has created an organisation based on a set of service and quality guidelines that rule our activities’ said Mr Dembovski. ‘Quality of service for us consists of three aspects – quality of product, delivery and communication.

‘We believe in listening, understanding and then responding. We often ask “what is the end usage for the timber you require?” The answer enables us to best understand the requirements. We listen, we learn, we act and we listen again.’

In 1994 Rait began to operate in two fields – sawmilling and furniture production.

‘We bought a framesaw mill from the ruins of a collective farm and rented a factory to produce exclusive furniture,’ said Mr Dembovski. ‘We no longer produce furniture – today our main business is converting and adding value to the softwood grown in Estonia and the north-west of Russia.’

When Rait entered the sawn timber and sawmilling business it was at the low value end of the market. The main production was palletboards and the volume was very small – around 3,000m³ a year. Within a short time it became clear expansion was the key to the future.

‘In 1995, in co-operation with the agency Koninkliijke Eduard van Leer bv of Amsterdam, active marketing of Estonian carcassing softwood began,’ said Mr Dembovski. ‘Rait became a key exporter, sourcing from a large number of smaller mills in Estonia and shipping first to Holland and later to the UK.’

The establishment of modern sawmills in Estonia has changed the structure of the industry. Where more than 70% of output is produced by around 10 leading sawmills there is little role for a key exporter – so Rait changed its emphasis from trading to adding value to sawn timber.

In 1996 it converted the framesaw mill into a planing mill which is equipped with a Weinig Hydromat with nine cutterheads. Initially, simple planing was carried out, but today Rait is Estonia’s leading producer of profiled softwood panelling, specialising in interior and exterior wall panelling and flooring.

Annual output is eight million linear metres and the markets cover the whole of Europe and beyond, including Japan.

‘With our own kilning we achieve suitable moisture content of timber for various uses and customers,’ said Mr Dembovski. ‘And we can undertake different types of packaging from strap bundling and shrink wrapping to simple transport packs.’

Next year Rait will install a second planing line which will triple production capacity. The company is also starting flexible component manufacturing which will enable it to add more value to the timber and give better service.

In 1997 Rait purchased an almost bankrupt sawline for small diameter sawlogs equipped with a HewSaw R115. Efficiency improvements coupled with Rait’s market expertise have made the mill a viable business, complementing the planing activity.

With little investment, output has increased threefold since the takeover. More than 70% of the present annual output of 50,000m³ is sold on the market and the rest is consumed by the planing mill.

The small diameter logs used as raw material allow Rait to produce sawn material containing mainly small live knots. Mr Dembovski said: ‘Such material is perfect for planing purposes and other visual uses, also also for structural use. Both redwood and whitewood are converted at the mill.

‘We produce standard sizes and also special dimensions, often working together with processors to find the best dimension to suit their end product and machining needs. The usual order size for us is a truckload or container and the sawn timber is sold in various moisture contents – shipping dry, special dry and unseasoned.’
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