€100 million VMG Lignum Construction factory opened at Akmenė FEZ

The first sustainable construction factory in the Baltic States and only the third in Europe has officially opened in the Akmenė FEZ. The VMG Lignum Construction factory plans to produce goods worth 150 million euros annually for the Scandinavian, North American, Australian and major European markets. The new factory will also create 200 new jobs, 140 of which have already been filled.

The VMG Group, real estate development company Hanner and Baltic Industrial Fund II are developing the new factory, valued at 100 million euros. Equipped with state-of-the-art Finnish, German, and American technological lines, the factory will produce a range of sustainable construction materials: laminated veneer lumber (LVL), I-joists and engineering timber.

The annual production capacity of the newly opened factory includes 120,000 cubic meters of laminated veneer lumber, 15 million linear meters of I-joists, and 200,000 cubic meters of engineering timber. Future plans involve expanding the product range. The produced goods will be sold both domestically and exported to markets in Scandinavia, North America, Australia, and Western Europe.

The grand opening of the factory at the Akmenė FEZ on Wednesday was attended by numerous guests including members of the Lithuanian government and parliament, municipal leaders, representatives from academia and industry organizations, investors, and developers.

“The government is committed to focusing on green investments in its program. Therefore, I am pleased to see responsible Lithuanian businesses contributing to these initiatives. I believe that the sustainable wood products manufactured in this factory, which will replace steel and concrete, will not only be in demand in the Lithuanian construction sector but will also be competitive in the EU market oriented towards sustainability,” said Minister of Environment Simonas Gentvilas.

According to the EU’s Green Deal, buildings are responsible for 35% of greenhouse gas emissions and 32% of waste. Meanwhile, traditional building materials such as steel and concrete production account for about 8% of CO2 emissions worldwide.

On the other hand, organic building structures – engineered wood, produced in the new factory, allow for a reduction in CO2 emissions by at least twice compared to steel or concrete structures. The Lithuanian government has committed that from 2024 onwards, at least 50% of organic, sustainable materials will be used in all public buildings.