In 1898 the construction of a plywood mill was begun on the bank of the Dane river. A little later the manufacture of plywood and blockboard was started. The production was exported to the West European countries. During World War II the mill was ruined. Rebuilding started after the war and by 1948 the mill managed to manufacture 2500 m3 of plywood and blockboard. A new chipboard plant was put into operation in 1960. In 1964 the production of various profile semi-products of form-pressed plywood was started. These were used for manufacturing various components for the furniture industry. In 1978 a new sliced veneer plant was put into operation with an annual capacity of 9,000,000 m2. mainly using mahogany wood from African countries.

In 1989 the installation of a micro-structural surface chipboard production line made by the Finnish Sunds Defibrator was started and put into operation in 1992.

The company's ownership is as follows: 68.2% is owned by the Investment Group of Industry and Finance Corporation of West Lithuania, 25.5% by employees and Klaipeda residents, and 6.6% by the State Investment Fund Securities.

In the long run, AB Klaipedos mediena has gained much experience regarding plywood and chipboard manufacturing technology. The company is located near the Klaipeda Trading Port, with its own railway siding, autonomous boiler plant and local air and water treatment equipment. The mill has regular and sufficient supplies of logs and chemicals. Loading in the finished goods warehouse is mechanized. All this creates a basis for improving and modernizing the production process and achieving high production quality.

The company plans in the near future to re-organize production in stages. The World Bank International Finance Corporation (IFC) is financing a project of perspective development. The Corporation is investing in the construction of a new plywood mill in Klaipeda. Two production lines with a capacity of 20,000 m3 plywood each have been designed. Moisture-proof plywood (1200 ¥ 2440 mm), 4-30 mm in thickness will be produced, part of which will be finished.

In 1996 the agreements was signed between the IFC and AB Klaipedos mediena, making it possible to start construction work with the participation of partners from the IFC, Shauman Wood OY, a Finnish company, and the Finnish bank Finnfund. On the basis of this agreement, AB Klaipedos mediena will have the controlling block of shares (51%). The project will cost USD 30 million.

Another project is the modernization of existing plywood production and expansion of the form-pressed plywood component production at the cost of USD 10 million. The implementation of the project was started in 1996 without ceasing production.

The third project comprises chipboard cutting and edge-trimming lines to produce panels for furniture production. Financing will be provided by the International Finance Corporation. Jaako Poyry, a Finnish Consulting Company, is completing preparations for the project.

The first project will have been realized by the mill's centenary jubilee (1898-1998). The third one will be implemented in five years.

After implementation of all three projects, 350 extra jobs will have been created. The company's most important objective is to find reliable marketing partners and to strengthen its position in the market. More attention will be paid to reliable deliveries, production quality and attractive advertising.

Bed slats are made by the company.

AB Klaipedos mediena trades with foreign companies in England, Germany, Denmark, Sweden, Italy, Poland and other countries.