“VMG Lignum construction” has opened up the Australian market

“VMG Lignum Construction”, which launched a sustainable construction materials factory in 2023, has already begun exporting its products to Australia. According to the company’s Chairman of the Board, Mindaugas Kozinecas, the company plans to sell around 2 million meters of I-joists and about 30,000 cubic meters of laminated veneer lumber (LVL) beams to Australia this year. In the long term, the company aims to increase the quantity of LVL products exported to Australia by more than 60%.

Kozinecas notes that there is significant potential to expand exports to Australia, as it is one of the largest consumers of engineered wood products in the world.

“The Australian market has been less affected by rising interest rates in Europe and the U.S., and the increasing number of immigrants moving to the continent continues to drive residential construction. It is estimated that the annual demand for engineered wood in this market is around 250,000–300,000 cubic meters, and there is only one local manufacturer of such products,” says Kozinecas.

He emphasizes that the engineered wood products supplied to this continent must meet specific requirements.

“Products for the Australian market often need to be designed for the construction of multi-story buildings, capable of withstanding greater loads. Additionally, the wood destined for this region must be specially treated to protect against termite damage,” says Kozinecas.

Last September, the international investment VMG group, along with “Hanner” and the BRAITIN-managed fund “Baltic Industrial Fund II,” opened a sustainable construction and renovation materials factory in the Akmenė Free Economic Zone. This is the first factory of its kind in the Baltic States and the third in Europe. It is anticipated that the new factory will generate about 200 new high-value jobs. Initial investments in the project amount to approximately 100 million euros.

Over the next year, once the factory reaches full capacity, it is projected to process 250,000 cubic meters of wood, produce 120 cubic meters of laminated veneer lumber, 15 million linear meters of I-joists, and up to 200,000 cubic meters of construction wood particle boards.

The factory’s annual sales are expected to reach up to 150 million euros. The products manufactured here are intended for export not only to Australia but also to European and North American countries.