Garnica to invest 80 million in new factory in Troyes (France)

Garnica, the international leader in the production of plywood panels from sustainable plantations and forests based in La Rioja, today confirmed its intention to build a new factory in Troyes, north-east France.

Work at the factory will begin in several stages, with construction beginning in the first half of 2019 and full operational status expected in 2020. It will require an initial investment of 40 million, will create up to 100 direct jobs and will be focused on the production of poplar veneer sheets.

All stages of this project are expected to conclude between now and 2025 with a total final investment of 80 million, an installation of 40,000 m2, up to 300 jobs at the new factory and an additional 500 indirect jobs in the surrounding rural area linked to the construction, cultivation of poplar trees and associated timber industry.

Christian Michel, CEO of the group, explained that, “we will build a benchmark factory, applying all the experienced gained by Garnica over more than 75 years of plywood production.”  The availability of raw materials, labour, good infrastructures and communication links were the deciding factors in the selection of Troyes as the location, as well as its proximity to the company’s client base.

Garnica has decided to build this new factory in response to the need to guarantee its plans for growth by positioning itself close to local poplar-focused plantations. The company is thus ensuring its ability to respond to an increasing demand for plywood from its clients and guarantee a supply of its main raw material, poplar trees. This is the tree most often used by the company to produce plywood. “It is a sustainable source of timber because it grows quickly and produces a panel that is highly regarded by our clients due to its suitability for numerous applications. It is also a tree that protects the environment by capturing CO2 from the atmosphere”, explained Pedro Garnica, President of the company.

Garnica has had another factory in Samazan (in the Aquitaine region of France) since 2010, which each year produces some 145,000 m3 of plywood, currently employs 155 people and occupies an area of 17,000 m2. Since this factory was built, Garnica has made numerous investments aimed at increasing production, improving processes and expanding raw material storage capacity.

With these new facilities and the recent acquisition of Maderas de Llodio, Garnica is laying the foundations to continue growing. In the last five years, Garnica has almost doubled its most important reporting figures. With average annual growth of 14% in recent years, this new project underpins the company’s ambitious growth plan.

The company currently owns a total of six production sites: five in Spain and one in France, in addition to which will be added these new facilities and 1,100 jobs. For the end of 2018, Garnica has reported an estimated turnover of 250 million euros and a production capacity of 350,000 m3 of plywood panels.