VMG Lignum, Lithuania - Driving sustainable construction with Raute’s LVL technology

MAKING WOOD MATTER

Summary

VMG Group, a global leader in engineered wood products, faced the challenge of diversifying its portfolio and meeting growing sustainability demands in construction. To achieve this, they launched the Baltics’ first LVL mill in Lithuania. Raute delivered a complete LVL (laminated veneer lumber) production solution, including advanced R7 Series technology, intelligent data systems, and mill layout planning. The result? High-efficiency, 24/7 production of sustainable LVL components – positioning VMG Group at the forefront of green building innovation.

VMG Group

VMG Group is a global investment firm operating 25 companies across multiple industries, with a strong focus on engineered wood products. Known as the largest producer of engineered wood components in the Baltics, VMG exports to over 40 countries worldwide. Their strategic vision centers on sustainability and innovation in construction materials.
Founded
2002
Location
Akmenės , Lithuania
Annual output
120,000 m3 (LVL)
Export markets
40+ countries
Raute Partner Since
2020

Challenge

VMG Group had a strong foothold in engineered wood products and veneer furniture production, but faced several strategic and operational challenges when deciding to enter the construction materials market with LVL:

  • Market volatility and risk mitigation
    The 2020 pandemic created unpredictable market conditions. VMG Group needed a new business direction to minimize risk and ensure long-term stability.
  • Alignment with sustainability goals
    Lithuania introduced a 2024 ordinance requiring public buildings to use at least 50% renewable materials. VMG Group wanted to lead this transformation and saw LVL as a key solution for greener construction.
  • Competitive pressure from traditional materials
    To compete with steel and concrete in high-rise construction, VMG Group needed a product that was strong, durable, and environmentally friendly, while also proving its viability to developers and builders.
  • Operational efficiency and scalability
    The company initially considered CLT (cross-laminated timber) but realized its project-based nature would not support 24/7 production. VMG Group needed a commodity product like LVL to maintain continuous operations and optimize resource use.
  • Integration and waste reduction
    VMG Group aimed to collocate the LVL mill with its particleboard factory to maximize timber utilization, reduce transportation, and achieve better Environmental Product Declaration (EPD) values.

 

Want to learn how VMG Group partnered with Raute to build the Baltics’ first LVL mill and pave the way for sustainable construction?