PMH Ltd. is a family-owned company founded in 2015 in Rauna, emerging from a broader family business group with long-standing experience in woodworking and other industries dating back to 1992. Today, the company specializes in the production of sustainable wooden and wood–aluminium windows and doors, as well as the manufacture and export of modular houses, including projects for hotels and multi-apartment residential buildings.
Approximately 95% of the company’s output is exported, and in recognition of its achievements in international markets, PMH Ltd. received the Smiltene Municipality Business Award 2025 in the category “Export”.
Production in Rauna and the Importance of the Team
The company operates in Rauna, Smiltene Municipality, where its total production area covers approximately 5,500 m². This includes a modular house and panel production facility (approximately 2,600 m²), a window and door production facility (approximately 2,600 m²), as well as a site management unit. PMH Ltd. currently employs around 70 people.
Company CEO Inguss Pavasars emphasizes that employees are one of the company’s most important resources. If performance in a particular position does not meet expectations, the company’s primary approach is to look for a more suitable role for the employee within the company group.
“Every employee is worth their salary. If something doesn’t work out in one position, we try to find another role within the group where the person can be productive and earn well,” says Inguss Pavasars.
Full-Cycle Solutions and Production Capacity
In the individual modular segment, PMH Ltd. is currently capable of producing 4–8 units per month, while in the hotel and multi-apartment building segment it can produce 10–12 units per month. The company particularly highlights its approach of offering clients a full-cycle solution—from design to a fully completed, certified building.
“Our work covers the entire construction cycle: from the first ideas and design to handing over the keys to the completed building. The client has one point of contact and one quality standard,” the CEO stresses.
This approach clearly differentiates PMH Ltd. from many competitors who offer only modular production without covering the full construction process.
From Business Lessons to High Added Value
The company’s development path has included complex situations and painful business lessons, which have ultimately become the foundation for strategic decisions and growth. As a result of such initially negative experiences, PMH Ltd. has now also focused on the development of high value-added products. The company is among the first in Europe to manufacture high-quality sound-insulating doors and also offers internationally certified fire-resistant doors.
“If we hadn’t completed those projects and invested our own funds, we wouldn’t have this product today. However, in that not-so-successful project we gained knowledge about the specifics of manufacturing sound-insulating doors, materials, and certification processes—and now it has become a successful product on the market,” admits Inguss Pavasars.
PMH Ltd.’s products are currently exported to and sold in Norway, Ireland, Germany, the Netherlands, and Cyprus, while active discussions are ongoing with potential partners in Sweden, the United Arab Emirates, the United States, and Australia. The company’s strategic focus is on markets outside the eurozone, where higher wage and price levels allow for more successful positioning of high-quality, fully finished products with high added value. In contrast, eurozone markets face significantly tougher competition and lower profitability.
Digitalisation with LIAA Support
In recent years, support from the Investment and Development Agency of Latvia (LIAA) under the Digitalisation Programme has played a significant role in the company’s development. Within this programme, PMH Ltd. has implemented two major projects.
One involved the acquisition of a hydraulic hot veneer pressing machine with dedicated software, which significantly automated production, improved quality, and enabled further development in the sound-insulating and fire-resistant door segment. The second project involved the development of a digital employee work and time-tracking system tailored specifically to the company’s needs. This system records work based on completed output, linking it in real time with productivity, material accounting, and remuneration.
“Salaries are calculated not by hours worked, but by actual output. The system reduces bureaucracy and allows both us and our employees to clearly see results. As a result, productive employees earn significantly above the regional average, while in cases where results are insufficient, the system helps identify issues in time and find a more suitable role within the company,” explains the CEO.
In the coming years, PMH Ltd. plans to increase modular house production to approximately 60 modules per month, develop a new interior door production facility in the Valmiera area, and continue automation and certification processes. Several of these projects are also planned to be implemented in continued cooperation with LIAA.
This informational material has been produced with the support of funding from the Recovery and Resilience Facility project “Digital Services Platform for Business Development Promotion”. The author alone is responsible for the content of this article. The views expressed do not reflect the official opinion of the European Union or the European Commission.
