Lumin’s new plywood mill project in Uruguay is progressing, with the process lines being commissioned in Q1 and a planned startup in July.

The mill located in Melo, Cerro Largo department is described as a major milestone in Uruguay’s forestry industry and will allow Lumin to increase its annual production capacity to nearly 500,000m3 annually.

A US$136m investment will see the facility have a production capacity of 164,000m3.

Site work began in April 2024, followed by arrival of machinery from Finland in October 2024. Mechanical assembly began in April 2025.

Commissioning of the steam generator, medium-voltage equipment, and the UTE began in November last year, with commissioning of the process lines expected to continue in February/March 2026, leading up to the planned startup in July 2026.

Raute Corporation signed a contract worth €49.6m with Lumin for the technology delivery of the mill. The order for Raute’s technology includes all main production processes: a log handling line, a veneer peeling line, two veneer drying lines with grading, three veneer composing lines, two plywood lay-up lines, two plywood pressing lines, panel repairing and sawing lines with extensive service package and long-term on-site management.

The expansion is part of Lumin’s strategy to capitalize on the growing global demand for sustainable timber products for the construction and furniture sectors.

The project is part of a growth strategy focused on using raw materials, minimizing environmental impact and adding value to the region. With plantations in the area that began in 2006 and 2007 having now reached maturity, the establishment of an industrial mill in Cerro Largo is designed to transform these resources into high-value products, while also creating job opportunities.

Lumin currently produces approximately 304,000m3 of plywood per year at its two existing plants in Tacuarembó. The new mill would make Uruguay the second largest producer of plywood in Latin America.
    
Source: wbpionline.com