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Boost in the ConTech industry: new sustainable construction plant, third in Europe, supplying LVL, I-joists €150M annually for American, Australian, and European markets


VMG Lignum Construction, the first sustainable construction factory in the Baltics and only the third in Europe, plans to produce €150 million worth of products annually for the Scandinavian, North American, Australian, and major European markets.

The €100 million structural engineering timber materials plant in the Akmenė Free Economic Zone started operating. It was opened together by VMG Group, one of the largest wood processing and furniture manufacturing groups in Central and Eastern Europe, Hanner, the leader in real estate development in Lithuania, and Baltic Industrial Fund II, managed by BRAITIN.


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;
  • 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.

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 Global Wood Markets Info (GWMI), the European market for mass timber-based multi-storey buildings is growing at some 8% per year.