VMG Lignum Construction has commenced operations for structural engineering timber materials in Lithuania. 

The sustainable construction facility is said to be the first of its kind in the Baltics region and the third in Europe. 

The €100m ($107.74m) plant is located in the Akmenė Free Economic Zone (FEZ).  

The factory is a venture by VMG Group, a wood processing and furniture manufacturing conglomerate in Central and Eastern Europe.

The development marks VMG Group’s third industrial project in the Akmenė FEZ. 

The initiative is in collaboration with Hanner, a real estate developer in Lithuania, and Baltic Industrial Fund II, overseen by investment manager BRAITIN. 

The VMG Lignum Construction factory aims to produce products valued at a total of €150m annually for global markets, including Scandinavia, North America, Australia, and Europe.

In addition, it is set to produce 120,000m³ of laminated veneer lumber (LVL), 15 million metres of I-joists, and 200,000m³ of structural particle boards.

The plant is expected to accelerate the advancement of sustainable and climate-friendly practices in new construction and panelised serial renovation projects. 

VMG Group sole shareholder and investor Sigitas Paulauskas said: “This product range is unique in global terms as a combination of engineered timber materials for construction that utilises wood biomass with maximum efficiency.  

“It should ensure top standards of sustainability and enable faster growth of the green contech industry.” 

The factory's future development phases are anticipated to expand its product range to include other eco-friendly building solutions. 

These will comprise prefabricated wall and ceiling panels, glued LVL columns, and wall particle boards with a decorative layer.