Lumin to Invest $136 Million to Build Its Third Industrial Plant in Uruguay

Lumin, a leading timberland and forest products company, announced on Friday (2-10-23) that it will be investing approximately $136 million (USD) to build its third industrial plant in Uruguay. The investment is expected to create more than 300 jobs and appreciably increase the country’s sustainable plywood production.

The project still awaits approval by Lumin’s board of directors, which includes representatives from the BTG Pactual Timberland Investment Group (TIG) and British Columbia Investment Management Corporation BCI. Once approved by the board, construction of the new plant is expected to begin late in 2023Q1, with operations expected to begin in 2026Q1.

The proposed expansion is part of Lumin’s strategy to capitalize on the growing global demand for sustainable timber products for the construction and furniture sectors. All of Lumin’s 120,00 hectares of commercial forests are independently certified as meeting the global standards for responsible forest management of the FSC® (FSC-C162602).

Lumin notes that the new investment will complement the company’s previous $48 million (USD) investments that have been made over the past two years into the company’s existing facilities, which included the construction of a thin peel line and a new warehouse facility.

In the press release, Álvaro Molinari, Lumin’s CEO, said:

“Lumin currently employs 780 people and produces 304,000 cubic meters of plywood per year at its two existing plants in Tacuarembó. We expect this new plant to create 320 additional jobs and to expand Lumin’s production capacity to nearly 500,000 cubic meters. Based on current figures, this would make Uruguay the second largest producer of plywood in Latin America.”