URUGUAY - Lumin, a leading timber and forest products company, will invest ~USD 136 million in the construction of its third industrial plant in Uruguay, which is expected to generate more than 300 jobs and significantly increase the country's sustainable plywood production.

Following approval by Lumin's Board of Directors, which includes representatives from BTG Pactual Timberland Investment Group (TIG) and British Columbia Investment Management Corporation (BCI), construction of the new plant will begin in the first quarter of 2023 and is expected to start operations in the first quarter of 2026.

The announcement was made in Melo, in the presence of the President of the Republic, Luis Lacalle Pou, the mayor of the department of Cerro Largo, José Yurramendi, and Lumin's CEO, Álvaro Molinari.

The expansion is part of Lumin's strategy to capitalize on the growing global demand for sustainable wood products from the construction and furniture sectors. Lumin's 120,000 hectares of commercial forests are independently certified as meeting the FSC's global standards for responsible forest management.

This new investment complements investments of USD 48 million made over the last two years in the company's existing facilities, including the construction of a Thin Peel plywood mill in Tacuarembó and a logistics storage center near the port of Montevideo.

Álvaro Molinari, CEO of Lumin, said, "Lumin currently employs 780 people and produces 304,000 cubic meters of plywood annually at its two existing plants in Tacuarembó. We expect this new plant to generate around 320 additional jobs and expand Lumin's production capacity to almost 500,000 cubic meters. Based on current figures, this would make Uruguay the second largest plywood producer in Latin America".

The expectation is that the new plant will capitalize on the timber forests that Lumin has been sustainably managing for more than 15 years in the departments of Cerro Largo and Treinta y Tres.