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Press Release: Lumin to Invest $136 Million in New Plywood Mill in Uruguay, Expanding Production Capacity to Nearly 500,000 m3
Lumin, a leading timberland and forest products company, will invest ~US$ 136 million to build its third industrial plant in Uruguay, which is expected to create more than 300 jobs and significantly increase the country’s sustainable plywood production.
The announcement was made this afternoon in Melo at an event attended by the President of Uruguay, Luis Lacalle Pou, the Mayor of Cerro Largo Department, José Yurramendi, and Lumin’s CEO, Álvaro Molinari.
Following approval by Lumin’s Board of Directors, which includes representatives of the BTG Pactual Timberland Investment Group (TIG) and British Columbia Investment Management Corporation (BCI), construction of the new plant will begin in the first quarter of 2023, with operations expected to commence the first quarter of 2026.
The expansion is part of Lumin’s strategy to capitalize on the growing global demand for sustainable timber products for the construction and furniture sectors. All of Lumin’s 120,000 hectares of commercial forests are independently certified as meeting the global standards for responsible forest management of the FSC® (FSC-C162602).
This new investment complements investments of US $48 million made over the last two years into the company’s existing facilities, which includes the construction of a thin peel line and a new warehouse facility.
Álvaro Molinari, Lumin’s CEO, said: “Lumin currently employs 780 people and produces 304,000 cubic meters of plywood per year at its two existing plants in Tacuarembó. We expect this new plant to create 320 additional jobs and to expand Lumin’s production capacity to nearly 500,000 cubic meters. Based on current figures, this would make Uruguay the second largest producer of plywood in Latin America.”
The new plant aims to capitalize on tree farms that Lumin has been sustainably managing for more than 15 years in the departments of Cerro Largo and Treinta y Tres.
Source: Business Wire