SPAIN - On April 12, Garnica announced the acquisition of panel manufacturer Maderas de Llodio. Located in Álava, Spain, Maderas de Llodio is a company founded in 1982 specialized in the production of radiata pine plywood panels.

With an export tradition, 80% of its sales are to external markets, Maderas de Llodio contributes to Garnica's growth strategy, market expansion and diversification of raw material and product portfolios. This operation also gives Maderas de Llodio stability and future viability.

Today Maderas de Llodio produces 42,000 m3 of panels, posts an annual turnover of 21.5 million euros and employs over 100 people.

While Garnica, established in 1941, is currently a global benchmark in the production of poplar plywood panels. With a turnover of more than 200 million euros in 2017 and a production capacity of 330,000 m3 of plywood panels, the company exports 93% of its sales. Its main markets are Western Europe and the United States, with operations in over 40 countries on every continent. It has five factories and over 950 employees. Its production model is based on sustainability and promotes fast-growing plantations as a source of raw material for its products, generating benefits for rural areas and thus contributing to improving the quality of life of its inhabitants.

“We all have a great deal to gain from this acquisition”, said Faustino Uriondo, until now Chairman of the Board of Directors and Purchasing Manager at Maderas de Llodio. He went on to add that, “Garnica will bring its know-how to Maderas de Llodio in terms of the productive system, technical and quality assurance processes, service capacity, a global customer base, R&D potential and the development of new products”. In turn, Maderas de Llodio will provide Garnica with the chance to expand its product range and therefore better meet customer demands. “Maderas de Llodio will help us keep growing and develop our knowledge of the potential of pine as a raw material”, said Pedro Garnica, Chairman of Garnica.

Christian Michel, CEO of Garnica, said that, “the fact that the two companies are so close geographically and share similar business cultures will no doubt help the integration process.”