Weyerhaeuser agrees sale of Lumin plywood mill in Uruguay7 June 2017
Weyerhaeuser has agreed to sell its Uruguay timberlands and manufacturing business, which includes the plywood mill producing Lumin branded products, to a consortium led by BTG Pactual's Timberland Investment Group for US$402.5m in cash.
Lumin plywood, which has proved popular in the UK, is marketed as a “sustainable” plywood, due to its being made from plantation-grown pine and eucalyptus trees and is available in six grades. It is produced in Tacuarembó in the north central region of Uruguay, by the Weyerhaeuser Productos SA plywood mill.
The transaction includes over 300,000 acres (120,000 hectares) of timberlands in northeastern and north central Uruguay, the plywood and veneer manufacturing facility, a cogeneration facility, and a seedling nursery.
“Our Uruguay business is a unique combination of high-quality timberlands, value-added manufacturing operations and skilled and dedicated people, and this transaction will best position the business to reach its full potential,” said Doyle R Simons, Weyerhaeuser’s president and chief executive officer.
The transaction is subject to regulatory review, and is expected to close in the fourth quarter of 2017.
Weyerhaeuser Uruguay and the buyer consortium will continue to operate separately until the transaction closes.
Weyerhaeuser said last autumn that it was considering exploring strategic alternatives for its timberlands and manufacturing operations in Uruguay, following its merger with Plum Creek.
Weyerhaeuser established its operations in Uruguay in 1997.