The International Finance Corporation (IFC), a member of the World Bank Group , announced a financing package for Arboreal , a Uruguayan company that transforms wood from responsibly managed forests into high-value-added industrial and construction products. The IFC funding, along with additional capital mobilized from the ILX Fund , will allow Arboreal to expand its production capacity, strengthen its technical expertise and local capabilities to scale its business, and respond to the growing regional demand for renewable construction materials with a lower environmental footprint, the organization stated in a press release.
“The IFC financing package for Arboreal totals US$40 million, including a US$20 million self-funded investment and an additional US$20 million mobilized from the ILX Fund. This financing will support the production of thermally modified wood, strengthen circular economy practices through solutions such as biomass briquettes, promote better use of byproducts throughout the production process, and enable various additional improvements at the processing plant,” the statement explained.
“At IFC, we are strongly committed to developing industrial solutions that maximize the value of renewable resources, drive local development, create quality employment, and contribute to the decarbonization of multiple value chains,” said Manuel Reyes Retana , IFC Regional Director for South America . “Arboreal demonstrates how responsibly managed forest resources can be transformed into high-value solutions with a strong impact on development,” he added.
“This transaction is a clear example of how private capital can support industrial growth aligned with climate goals in emerging markets,” said Manfred Schepers , CEO of ILX. “We are pleased to partner with IFC on this transaction, which demonstrates how the combination of credible certifications, responsible sourcing, and materials innovation can generate tangible environmental benefits, while strengthening local value chains and industrial capacity in Uruguay,” he added.
In addition to financing, IFC will provide strategic advisory services to support the development of the regional market for sustainable construction solutions, including demand analysis, regulatory frameworks and construction standards that facilitate their adoption in Latin America.
“This investment represents a very important step for Arboreal. It will allow us to expand our industrial capacity in Uruguay, develop higher- value-added wood solutions, and strengthen our position to meet the growing demand for more sustainable building materials and systems in Uruguay, the region, and the world. We greatly appreciate IFC’s confidence and support in continuing to consolidate an industrial platform based on innovation, quality employment, and the responsible use of renewable resources,” stated Matías Abergo , President and Co-founder of Arboreal.
This project will be implemented between 2026 and 2028 and will contribute to local job creation throughout the forestry and industrial value chain, with a 15% increase in direct employment and the creation of approximately 185 additional jobs, including temporary and indirect positions in activities such as transportation, logistics, maintenance, and harvesting.
https://www.elpais.com.uy/negocios/noticias/el-grupo-banco-mundial-y-un-fondo-internacional-invierten-en-una-empresa-uruguaya-para-expandir-su-capacidad-productiva
