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VMG LIGNUM CONSTRUCTION to start LVL and I-joist production in Lithuania, to boost green ConTech industry
[Sep 19,  2023]


VMG Group, one of the largest wood processing and furniture production groups in the Central and Eastern Europe together with real estate development leader in Lithuania ¡°Hanner¡° and ¡°Baltic Industrial Fund II¡± managed by BRAITIN opened a 100 million Eur worth factory of structural engineered timber materials in Lithuania, Akmene free economic zone.

VMG Lignum construction factory has yearly capacities to produce 120.000 cubic meters of LVL (Laminated Veneer Lumber), 15.000.000 meters of I-joists and 200.000 cubic meters of structural particle boards.

¡°This product range is a world-wide unique combination of engineered timber materials for the construction, the most efficiently utilizing the wood biomass. It should ensure the highest standards of sustainability and enable faster growth green ConTech industry¡°, says the sole VMG group shareholder and investor Sigitas Paulauskas.

According to him, the factory is going to supply both local and global markets to enable faster development of sustainable and climate friendly construction.

Engineered timber products and building solutions will be supplied to both new construction and serial panelized renovation projects.

The first target production markets for export are Scandinavian and other European countries, North America and Australia.

In the subsequent phase of development, the solutions¡¯ range will be expanded to include other segments of sustainable building structures, such as prefabricated wall and ceiling panels, glued LVL columns, and wall chipboard with decorative sheet.

Timber construction has been established among top priorities of New European Green Deal. In the form of the New European Bauhaus initiative, supported by the European Commission and member countries, timber structures are going to be more widely applied for new build and renovation projects. Focusing on new regulations to minimize the climate impact, building industry is facing both new challenges to minimize carbon emissions. To tackle this with the help of engineered timber products, there arise new opportunities as well, to save energy consumption and increase stagnating efficiency.

According to the related report, the European market for mass timber-based multi-storey buildings is growing at some 8% per year.

About VMG group

The VMG Group, whose products are exported to more than 30 countries around the world, is currently developing large-scale investment projects in one of the free economic zones in Lithuania, the total investment amount of which reaches 0.5 billion Eur.

In 2020, the company opened one of the largest chipboard factories in Europe. The company has invested more than 150 million Eur in its capacity.

In August 2023, a new cabinet furniture factory was officially opened. Investments in this project exceeded 80 million Eur. 100 million euro worth construction structure factory ¨C VMG group¡®s third industrial object in Akmene FEZ.

VMG group's consolidated sales in the furniture sector last year, compared to 2022, grew by more than a third and reached 323 million Eur.

VMG group unites 20 companies with more than 3.000 employees.

The company invests in wood processing and production of sustainable wood products, renewable energy, development of industrial innovations and technologies, production of engineered wood structures, and efficient management of infrastructure and industrial real estate.

Source: UAB "VMGcorp"