This is the 1st interview in Fordaq’s 25th Anniversary series - “100 Wood Industry Leaders - 100 Visions”, celebrating global executives who are shaping the future of the wood industry. And it’s only fitting that we begin with VMG Group - a company that has been leading by example for years.

VMG Group is among the most technologically advanced wood-industry groups in Northern Europe - currently comprising around 20 companies, employing more than 3,000+ people, exporting to some 50 countries and reporting a turnover of around €300+ million in 2024.

As always, VMG leads the way - and not only in production scale, but in vision, innovation, and responsibility.

I spoke with Egidijus Mockus, CEO of VMG Group, about the company’s strategy, innovation culture, and his honest view on Europe’s competitiveness in the global wood market.

Vision & Strategy

VMG Group currently operates in furniture, wood products, engineered wood, energy, renewable energy, robotization, and automation. What is the single strategy that unites all these directions?
VMG Group unites its diverse operations - furniture, wood products, engineered wood, energy, renewables, robotization, and automation - under a single strategy: “lead the way to a sustainable home”. This is achieved through vertical integration, zero waste from forest to final product, advanced automation, and cost-effective energy solutions.

If you had to describe the business philosophy of VMG in one sentence, how would you put it?
Our business philosophy is defined by vertical integration, optimizing the circular use of renewable materials and energy produced in-house.

How do you see the future of the wood and furniture industry in Europe over the next 10 years?
Europe has sufficient raw materials and access to renewable energy. However, productivity is challenged by high equipment and labour costs, labour shortages and regulatory burdens. Asian producers dominate the EU market, benefiting from fewer regulations and export support. Without measures to limit raw material exports or harmonize import requirements, the European wood and furniture industry risks significant contraction.

Growth & Globalization

VMG is often named among the largest investors in Lithuania’s economy. What factors shape your expansion decisions?
VMG’s expansion is driven by the desire to transform the Baltic region from a raw material exporter to a producer of finished goods, thereby strengthening the local economy. Vertical integration and circularity require significant investments and there is no way back if you have chosen such business model.

Why do clients choose VMG, and what drives their long-term cooperation with you?
Vertically integrated supply chain ensures stability and predictable pricing with VMG, fostering long-term partnerships despite market fluctuations. High service levels – availability and quality – also play a crucial role.

Innovation & Sustainability

Why did VMG decide to create the R&D Park in Klaipėda, and what role does it play for the group?
The R&D Park in Klaipėda was established to advance robotization, automation, and digitalization. Initially focused only on internal challenges, the team now provides solutions to external clients. Automatization solutions vary for each production site due to many limitations such as space, speed, people and production flow. It was very difficult to receive adapted automatization proposal from the market. Therefore, we invested in R&D park.

Which technological breakthroughs in wood processing and furniture manufacturing do you believe in the most?
Maybe 3D printing, or built-in furniture solutions already integrated into new apartment design and construction projects.

What tools or sources do you use to analyze markets?
Market analysis relies on sources such as Fordaq, EUWID, and annual reports, with a preference for financial data due to its objectivity.

Which single source of data or report do you trust the most, and why?
I trust annual reports, because they are audited and contain limited advertising.

Leadership & Decisions

What have been the most difficult decisions you had to make as the head of VMG Group?
Major investment decisions are the most challenging, as they require forecasting future developments.

How do you see the role of artificial intelligence—both in VMG’s operations and for you personally as a business leader?
Artificial intelligence is widely used in production quality control and as a programming support tool already today.
As regarding the business leader, I believe leaders should remain intelligent but not artificial.

How do you foster a culture of innovation inside VMG?
Innovation is encouraged through motivation, creativity, and tolerance for mistakes. It is a long journey, and we are only beginners in it. Continuous improvement is essential.

What qualities do you value the most in managers and specialists?
The most valued qualities in managers and specialists are initiative, responsibility, and openness.

What’s the biggest leadership lesson you’ve learned while working with VMG?
Effective leadership requires delegation. You should delegate and trust but also understand that responsibility remains on you.

Who are your role models in business—in Lithuania or worldwide?
Role models include “Vilniaus prekyba” in Lithuania and Japanese or South Korean business models, which emphasize human resource management and creativity over raw material or location advantages.

Industry & Risks

What do you see as the main risks for the industry in the next 3–5 years?
Over the next 3–5 years, the industry faces several key risks: geopolitical instability, which may disrupt supply chains and international cooperation; natural disasters, affecting production and logistics; and uncertainty in global financial standards, raising questions about the future of value exchange. This uncertainty leads to a fundamental question: What will remain as the standard for measuring value? Will it continue to be traditional currency, shift toward cryptocurrency, or evolve into something entirely new?

In your opinion, what will define the competitiveness of companies in this industry in the future?
Future competitiveness will continue to be determined by price, availability, quality, and design. The business model will decide which combinations to compete on. I still hope furniture stays wooden in future.

Conclusion

VMG Group’s journey illustrates how a traditional industry can be reinvented through technology and vision. VMG has become a vertically integrated ecosystem—from raw material processing to energy production—proving that sustainability and profitability can go hand in hand.

Its philosophy—“zero waste from forest to final product”—represents not only an industrial principle but also a long-term commitment to Europe’s circular economy.