{"id":99989,"date":"2026-09-17T06:50:04","date_gmt":"2026-09-17T06:50:04","guid":{"rendered":"https:\/\/www.timberindustrynews.com\/?p=99989"},"modified":"2026-09-17T17:29:48","modified_gmt":"2026-09-17T17:29:48","slug":"further-hs-timber-investment-in-argentinian-sawmill-comes-under-review","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/further-hs-timber-investment-in-argentinian-sawmill-comes-under-review\/","title":{"rendered":"Further HS Timber investment in Argentinian sawmill comes under review"},"content":{"rendered":"

ACON Timber, the Argentine joint venture between Austria\u2019s HS Timber Group and Belgium\u2019s Forestcape, is reassessing the next expansion stage of its Virasoro sawmill after logistics and export costs proved considerably higher than expected. The plant is already processing more than 700,000 m\u00b3 of pine annually, but a further investment exceeding \u20ac87 million would be required to move towards its designed capacity of around 1.3 million m\u00b3.<\/p>\n

One of Latin America\u2019s largest recent sawmill investments has reached a critical point in its next development phase.<\/p>\n

ACON Timber President Nicol\u00e1s Crisp said the company is reviewing further investment at its Gobernador Virasoro operation in Corrientes, Argentina, despite the mill having exceeded the production targets set for its first stage.<\/p>\n

The sawmill, a joint venture between HS Timber Group and Belgian forestry investment company Forestcape, was officially commissioned in April 2024 after one of the largest greenfield investments in Argentina\u2019s forest industry in decades. The initial investment has since reached roughly \u20ac113 million, based on the approximately US$130 million figure reported by the company and Argentine sources. The industrial operation itself has performed strongly.<\/p>\n

ACON Timber had initially planned to process around 600,000\u2013650,000 m\u00b3 of pine annually during the first stage. Current log consumption has moved above 700,000 m\u00b3\/year, with the mill producing approximately 350,000 m\u00b3 of finished wood products and around 90,000 tonnes of pellets. Export volumes are running at roughly 900 containers per month. The constraint is increasingly outside the mill.<\/p>\n

Capacity for another major step<\/strong><\/p>\n

The Virasoro sawline was conceived from the outset for a substantially larger operation.<\/p>\n

Its technical configuration allows log consumption to eventually reach around 1.3 million m\u00b3\/year, close to twice the current level. Reaching that volume would require additional drying capacity, boilers, energy infrastructure, sorting equipment and further downstream investment.<\/p>\n

Argentine reports put the cost of the next phase at more than US$100 million, or roughly \u20ac87 million at current exchange rates.<\/p>\n

ACON has already continued investing after commissioning. Seven additional kilns were installed during 2025 at a cost of around \u20ac6 million, while another production line entered service in 2026.<\/p>\n

The question is now whether the external operating environment can support the next step.<\/p>\n

Crisp said the plant itself had demonstrated that it could compete internationally on production efficiency. The problem, he argued, lies in moving finished lumber from northeastern Argentina to export markets.<\/p>\n

A 1,000 km logistics problem<\/strong><\/p>\n

Virasoro lies in one of Argentina\u2019s strongest plantation forestry regions but far from the country's main deep-sea container terminals.<\/p>\n

Moving export lumber through Buenos Aires involves a journey of close to 1,000 km. Truck-based container logistics can require an empty container to be collected at the port, transported to the mill, loaded and then returned over the same distance.<\/p>\n

<\/a>
HS Timber\u2019s Virasoro sawmill in Argentina, where the company is reviewing a further multi-million euro expansion amid high logistics costs.<\/figcaption><\/figure>\n

For a plant moving roughly 900 export containers every month, this becomes a major part of the delivered cost of lumber.<\/p>\n

Crisp has compared the situation unfavourably with competing producers in Brazil and Uruguay, where large forestry operations have much shorter or more efficient access to ports and established export infrastructure.<\/p>\n

The company is consequently pushing for greater use of river transport.<\/p>\n

Ports at Corrientes, Ituzaing\u00f3 and Posadas potentially offer alternatives to long-distance trucking, allowing containers to move by barge towards Buenos Aires and onward to ocean-going services.<\/p>\n

There are signs that this option is beginning to gain scale.<\/p>\n

In early September, the Port of Corrientes handled an ACON Timber operation involving around 480 containers of forest products, which were loaded for onward shipment towards Buenos Aires before continuing to international markets.<\/p>\n

For ACON, however, river transport needs to become both more available and economically competitive before the full benefit of the Virasoro site's installed potential can be realised.<\/p>\n

Export bureaucracy adds another layer<\/strong><\/p>\n

Transport costs are not the only issue raised by the company.<\/p>\n

ACON has also pointed to customs procedures, export documentation, administrative requirements and delays in recovering VAT credits generated by large industrial investments.<\/p>\n

Crisp said some trade documentation remains paper-based and that administrative costs have turned out to be more burdensome than originally expected.<\/p>\n

The company has called for changes to Argentina's coastal and river-shipping framework to increase competition and lower freight costs.<\/p>\n

This is particularly important because Virasoro was developed primarily as an export-oriented sawmill.<\/p>\n

At commissioning, HS Timber said the mill's dry sawn timber would be sold mainly into North and Central America, the Middle East and Asia, while pellets produced from sawmill residues are largely directed towards Europe.<\/p>\n

The site's economics are therefore closely tied to its ability to move large volumes reliably from inland Corrientes to international shipping routes.<\/p>\n

One of HS Timber's largest industrial projects<\/strong><\/p>\n

The Virasoro mill is one of the most significant projects in HS Timber Group's international production network.<\/p>\n

The facility processes plantation-grown Pinus taeda and Pinus elliottii sourced in the region and was designed around high levels of raw-material utilisation.<\/p>\n

The original installation included drying, planing and pellet production alongside the main sawline. At commissioning, dry lumber capacity was stated at 370,000 m\u00b3\/year, while pellet capacity was designed at up to 132,000 tonnes\/year. Two biomass-fired boilers provide process heat using bark and other wood residues.<\/p>\n

Actual current output of around 350,000 m\u00b3 of finished wood products shows that the first stage is operating close to the scale originally envisaged.<\/p>\n

The next stage would transform Virasoro into a much larger operation.<\/p>\n

At 1.3 million m\u00b3 of annual log intake, the site would rank among the largest individual sawmilling operations in the region and would require materially higher volumes of plantation pine from Corrientes and neighbouring forestry areas.<\/p>\n

Expansion decision comes as HS Timber grows elsewhere<\/strong><\/p>\n

The uncertainty in Argentina contrasts with HS Timber's continuing expansion in Europe.<\/p>\n

The Austrian group has significantly increased its northern European footprint over the past two years. It took control of Vika Wood in Latvia, completed the acquisition of Latvian sawmill Kurekss and pellet producer Kurzemes Granulas in late 2025, and in July 2026 completed the purchase of Mal\u00e5 S\u00e5g in Sweden, now operating as Mal\u00e5 Timber.<\/p>\n

Once its existing investment programme is completed, Mal\u00e5 is expected to have capacity for up to 340,000 m\u00b3\/year of kiln-dried and further processed softwood lumber.<\/p>\n

<\/a>
HS Timber Group production line. The group has continued expanding internationally while further investment at its ACON Timber sawmill in Argentina is under review.<\/figcaption><\/figure>\n

HS Timber now says its network employs more than 3,000 people and supplies customers in around 95 countries.<\/p>\n

Virasoro nevertheless differs from the group's European operations because of its scale, greenfield design and dependence on long-distance export logistics.<\/p>\n

Industrial performance is no longer the main question<\/strong><\/p>\n

The first phase has largely answered whether a large modern sawmill can operate successfully in Argentina's plantation belt.<\/p>\n

The Virasoro plant has moved beyond ramp-up, exceeded its original log-consumption target and established regular export flows.<\/p>\n

The decision facing ACON is therefore not primarily about sawmill productivity.<\/p>\n

It is whether an inland export-oriented mill can compete with Brazilian and Uruguayan producers once freight, port access, river transport and administrative costs are included.<\/p>\n

ACON still has the technical possibility to almost double its current wood intake. But the company has made clear that the next investment will depend on improvements outside the mill gates.<\/p>\n

For Argentina's forestry industry, the consequences extend well beyond one plant. Moving Virasoro towards 1.3 million m\u00b3\/year would create another large outlet for the region's plantation pine and substantially increase lumber exports from Corrientes. A decision to postpone that expansion would instead leave a large part of the installed potential unused.<\/p>\n

For HS Timber and Forestcape, the first \u20ac113 million has created the industrial platform. The next \u20ac87 million-plus will depend much more on Argentina's logistics network than on the sawmill itself.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":99990,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-99989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\nFurther HS Timber investment in Argentinian sawmill comes under review - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/further-hs-timber-investment-in-argentinian-sawmill-comes-under-review\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Further HS Timber investment in Argentinian sawmill comes under review - 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