Scaling low-carbon timber production in Latin America

ILX is participating in a loan arranged by IFC to Arboreal in Uruguay, a vertically integrated wood product and mass timber manufacturer, and regional leader in low-carbon construction materials. The facility finances capacity expansion, technological upgrades, and the shift towards higher value-added engineered wood products.

Arboreal operates one of the most advanced industrial wood platforms in Latin America. The investment supports the expansion of thermally modified timber production, the installation of a biomass and briquette system converting sawmill by-products into renewable energy, and targeted upgrades across grading, drying, remanufacturing and CNC processes.

These measures reduce waste, promote FSC-certified sourcing, and enable the substitution of more carbon- and resource-intensive materials such as steel and concrete. As a result, 100% of the loan qualifies as climate and nature finance. Arboreal combines an export-oriented business model, diversified customer base, access to certified plantation wood, and a strong execution track record, supported by ongoing IFC technical assistance to strengthen ESG integration and climate risk management.

This investment marks ILX’s first exposure to Uruguay and the forest products subsector, supporting the scaling of low-carbon industrial assets in Latin America while delivering climate mitigation impact and sustainable job creation.