Lignia Wood goes into administration but could be saved
A new buyer or investor is being sought for the Lignia Wood Company, which has entered administration.
The COVID-19 pandemic is being blamed for a decline in sales, with the Barrybased firm unable to secure ‘the necessary funds to continue to develop and grow its product offering to take advantage of the global modified wood market.’
Lignia wood is made from 20-yearold radiata pine and is being used by boatbuilders like Spirit Yachts as a sustainable real wood alternative to traditional teak.
It is infused with resin and cured, giving it similar look, feel and durability to teak.
Spirit’s joint managing director and head of production, Mike Taylor said in the short term the yard had enough lignia ‘to make sure current projects in build are not delayed.
‘For the longer term, we are working closely with our suppliers to source, scrutinise and thoroughly test alternative materials. We have exceptionally high standards and any new decking will need to be a quality alternative, as well as durable and of course sustainable,’ stressed Taylor.
‘There is huge demand across the boatbuilding industry for hardwearing, sustainable decking, so there is a brilliant opportunity for the right company. As an industry, we cannot revert back to using unregulated teak – we must continue pushing for a sustainable solution,’ Taylor added.
The administrators Resolve said the global modified wood market is projected to grow and it was ‘confident’ of finding a new owner.
Resolve partner, Chris Farrington, said under ‘normal circumstances’ early stage businesses like Lignia, ‘would have been healthy and on a clear path to profitability’, but the COVID-19 pandemic had ‘squeezed’ their balance sheets.
‘We are confident that we will find a new owner that seeks to capitalise on the sustainable wood trend,’ added Farrington.