Despite its strong engineered timber manufacturing base, only a small share of Lithuania’s laminated veneer lumber remains in the country, according to VMG Lignum.
Lithuania is one of Europe’s leading producers of engineered timber, with companies supplying structural solutions to markets across the region.
Yet, according to VMG Lignum, a Lithuanian manufacturer of engineered wood products and prefabricated construction solutions, there is a clear paradox: while Lithuanian-made engineered timber is increasingly used in construction projects abroad, domestic adoption remains limited.
Only about 1% of the laminated veneer lumber (LVL) produced in Lithuania remains in the country, with the rest exported. The challenge, the company argues, is not manufacturing capacity but demand.
Its theoretical LVL production capacity could reach approximately 120,000 cubic m a year, given sufficient market demand, while its near-term target is to achieve a monthly production rate of 9,000 cubic m. The figures highlight Lithuania’s technological potential, but also the extent to which the domestic market has yet to make full use of it.
As a result, Lithuanian engineered timber is more likely to become part of a building in the Netherlands, Belgium or Scandinavia than in Lithuania, VMG Lignum says.
The company attributes this partly to the different ways timber construction has developed across Europe. In Scandinavia, timber has been a natural construction material for centuries and continues to be associated with quality, durability and quality of life.
In Lithuania, by contrast, concrete, reinforced concrete and masonry have dominated construction for decades. Choices are therefore influenced not only by technological considerations, but also by long-established practices and traditions.
Modern engineered timber, however, differs significantly from traditional timber construction. Materials such as LVL offer dimensional stability, structural precision and durability, while supporting faster and more efficient construction.
These characteristics are helping to make engineered timber an important part of modern prefabricated construction, VMG Lignum says.
The company also highlights the environmental case for wider adoption. Timber can help reduce the climate impact of construction, as trees absorb carbon dioxide as they grow and carbon remains stored when timber is used in building structures.
However, technological and environmental advantages alone are not enough to drive wider adoption. Construction decisions are also shaped by economic efficiency, regulation, design experience and market maturity.
A shift towards total project value
Priorities also differ between markets. In the Netherlands, for example, construction speed has become an important consideration, according to VMG Lignum.
Faster project delivery can reduce the time equipment is required on site and allow investments to begin generating returns sooner. Attention is increasingly shifting from the cost of individual materials to the overall economic efficiency of a project.
VMG Lignum sees this as one factor driving the growth of prefabricated construction. It says up to six modules can be installed on site each day, while a five-storey building comprising about 300 modules can be assembled in two to three months.
This approach moves a greater share of the work into factories, leaving the construction site primarily for assembly.
The company also points to differences in consumption as an indication of the market’s potential. Australia, with a population of about 28 million, consumes approximately 350,000 cubic m of LVL each year, compared with around 450,000 cubic m across Europe, which has a population of roughly 450 million.
This suggests the European market may still be at an early stage in realising the full potential of engineered timber.
Barriers to wider adoption
There is no single reason why progress has been slower in Lithuania. Regulation and fire safety requirements remain among the key challenges, particularly for taller buildings.
Wider adoption also requires more than new technology. Design practices need to evolve and market experience needs to grow, while familiarity remains an important factor in construction decisions. New technologies require time and successful reference projects before they become widely established.
VMG Lignum also believes the way project economics are assessed needs to change. Too much attention is often placed on the price of individual construction materials rather than total project value, including construction time, labour requirements, capital costs, operational efficiency and environmental impact.
The cheapest material does not necessarily result in the most economically efficient building, the company says.
Lithuania has already established much of the technological foundation needed for wider adoption, including modern manufacturing facilities, accumulated expertise and international experience. As regulations evolve and public confidence grows, VMG Lignum says the country could become not only a producer of engineered timber solutions, but also a market that applies them more widely at home.
