The Baltic Stone Scene Today

With the remarkable growth in the economies of Latvia, Estonia and to a lesser extent Lithuania in recent years, the construction sector is seeing a lot of activity. Dolomite, used regionally for building castles, churches and manor houses since Medieval times, is still employed but its popularity has been completely overshadowed by imports of granite and marble.

The dynamic duo´ was the accolade bestowed on Estonia and Latvia at the end of 2006 by The Economist magazine. The two Baltic countries GDP were reported to be growing at 11,6% and 10,9% respectively. Lithuania was reported elsewhere to be growing at around 7,2%. The high growth rates are an exceptional product of good luck and good policies. Especially since joining NATO and the EU in the spring of 2004, the countries are stable, business-friendly and lie close to large, rich markets. Consumption is soaring in all three countries, as is credit. Getting the economy under control is vitally important to ensure stable growth. Whether the “new Europeans” can keep up the pace and catch up the richer half of their continent remains to be seen.

Republic of Lithuania

Decorative dolomite blocks were extracted until fairly recently in northern Lithuania, at Petrasiunai near the town of Pakruojis. Pakruojis Manor comprised 43 buildings built at the end of the 18th century by Baron von der Ropp from the local stone. Europe’s only dolomite-arched bridge/dyke was built here in 1821 – it was rebuilt in 2001. Today at Petrasuinai, AB Dolomitas – a member of the Achemos Group – produces crushed dolomite of every fraction in line with EU standards.

Independent between the two World Wars, Lithuania was annexed by the USSR in 1940. In March 1990 Lithuania became the first of the Soviet republics to declare its independence, but Moscow did not recognize this proclamation until September of 1991. The last Russian troops withdrew in 1993. Lithuania subsequently restructured its economy for integration into western European institutions; it joined both NATO and the EU in the spring of 2004. This is the largest of the three Baltic countries with an area of 65200 km2.

Lithuania applied to adopt the Euro at the same time as Slovenia. Whilst the latter’s bid was accepted, Lithuania’s was declined on the grounds of inflation above the set limits. The year 2010 is currently being mooted.

The stone industry in Lithuania

According to Mr. Zygimantas Ivasauskas, trade manager of RUDMARMA Joint Stock Company based near Trakai, ´Stone culture in Lithuania is rising just now. But everything is imported. We import granite slabs from Brazil, Africa, Scandinavia, India, Chile, China and Italy, while marble, travertine and onyx raw materials are obtained from Greece, Italy, Iran, Turkey, India, Spain and Portugal. In our factory we produce fireplace surrounds, kitchen table tops, floor tiles, window sills, stairs and architectural components. Our main customers are in Lithuania. We have supplied many projects, including the central landing stairs and window sills in the Presidential Palace, chapel and altar floors in Vilnius Cathedral, fireplaces in Vilnius Town Hall, stairs and floors in the Grand Casino, Vilnius, and many others. We export some production to the UK, Sweden, Latvia and Russia, but our export turnover is not big´. Rudmarma´s website is www.rudmarma.lt. Or e-mail zygimantasi@takas.lt

Some other stone companies operating in Lithuania include: UAB Akmenija, founded in 1999 in Klaipeda who make fireplaces, stairs and kitchen worktops in granite and marble (www.akmenija.lt) UAB Akmens statyba of Vilnius specialize in artisanal and rustic stone products (www.akmensstatyba) UAB Granitas of Kaunas import granite from the Ukraine mainly for making cube setts or cobblestones: established in 1959, this company had 690 employees (!) in 1996. (www.granitas.lt) UAB Graniteka, of Siauliai, offers a wide range of granite and marble products (www.graniteka.lt.)

Lithuania’s capital city Vilnius was declared a UNESCO World Heritage Site in 1994. With Linz in Austria it will be European Capital of Culture in 2009 – the same year as the 1000th anniversary of the city’s founding. Vilnius will be the first capital city of a post-communist country to receive this honorary title. According to a local journal, ´Most of the pieces are in place for a sustained building boom. New apartment blocks are usually sold out before any spade breaks the ground to start the work´. New public buildings include the Vilnius Art Centre with exhibitions from the Guggenheim and Hermitage museums, the National Palace with a 1800-seat concert hall and cultural centre, and the Congress Centre with a seating capacity of 3000. The Vilnius Office Park is a 38 m Euros project with five seven-floor office buildings by the Vilnius-Riga highway. The retail property market is developing at full speed, with several new shopping malls built, under construction or planned. And finally the restoration of important city buildings including the Royal Palace will surely bring quite a bit of work for the local stone firms.

Republic of Latvia

Latvia’s capital Riga came top of the property price growth league in 2006 – an almost 40% increase compared with 2005 was reported by Knight Frank International. For investors, the question is: can it last?

Latvia has a border with Estonia to the north, Russia and Belarus to the east and Lithuania to the south. Riga celebrated its 800th anniversary in 2001. Having re-established independence in 1991, Latvia joined both NATO and the EU in the spring of 2004.

The first Russian car, the first Russian tank and the first Russian aircraft engine were all developed and built in Riga. Today there is still a sizeable Russian minority in the country – some 30% of the population.

The stone industry in Latvia

The CSB (Central Statistical Bureau) of Latvia confirmed that no decorative or building stone was quarried in the country from 2003-2006. Krantsiems pink dolomite and Sauriyeishi brown-grey gypsum, described in a Russian guide, are now only extracted occasionally and on demand, usually for restoration projects. Limestone deposits confined to the Permian formation in south-western Latvia are not currently worked. There are quite a few companies importing granite and marble and they all seem to be in Riga. The author visited three leaders - AGNI, Uldis Leilands and Dans Jansons - and a sculptor.