CLT market keeps growing briskly

With annual growth rates beyond the 10% mark, the Central European CLT sector continues to increase considerably. In 2017, the produced volume in the "DACH" region (Germany, Austria and Switzerland), in Czech Republic and in Italy gained 15% totalling 690,000 m³; this year, the output will increase by another 13% to 770,00 m³. Growth is mainly due to production increases of almost all big producers (see table below). The two newcomers, Johann Pabst Holzindustrie, Zeltweg, and Best Wood Schneider, Eberhardzell/DE - both started producing CLT with 1.25 m width this year - are not considered here yet.

The growth curve of upcoming years is expected to be even steeper: In 2019, the Derix group in Westerkappeln/DE and Schillinger Holz in Küssnacht/CH are launching new large-scale production lines. Furthermore, the Pfeifer Group will enter the sector with a 100,000 m³ factory in Schlitz/DE and Stora Enso is launching a third factory in Scandinavia.

For 2020, the Johann Offner enterprise group announced the opening of a second KLH site in Wiesenau near Bad St. Leonhard. The final expansion will output 150,000 m³/yr of CLT. This would mean a total of 270,000 m³/yr for KLH - just like Binderholz and Stora Enso. Binderholz will reach this figure by means of a second expansion stage in Burgbernheim, and Stora Enso thanks to a third site in Gruvön/SE. Adding up the prospective capacities of the "big three", the sum of 800,000 m³ exceeds Central Europe's current total output. Next to these confirmed projects, there are several other Austrian and German timber industries that have concrete plans to enter the CLT market or expand existing capacities. However, nobody wanted to openly comment on these projects yet by the editorial deadline. Concerning the time after this announced surge in investments, machine suppliers have divided expectations. While part of them anticipate a "breather", other machine manufacturers reckon "further growth boosts" up to a "market doubling within a few years".

Potential throughout Europe

Strong increases have also been observed for the Northern European market. After relatively small plants (up to 40,000 m³/yr) in Finland (CLT Finland), Latvia (Skonto Cross Timber Systems) and Sweden (Martinsons, Södra), now a large-scale project will be installed at Splitkon, Norway. Next up is Swedish timber industry Setra's start into the sector with a production capacity of 55,000 m³/yr, announced for 2020.

Södra is currently only running one test plant with 7000 m³ per year and shift, but is expected to extend it by a large-scale plant. Last but not least, the previously mentioned Stora Enso site in Gruvön/SE with a capacity of 100,000 m³/yr will be launched next year. According to industry experts, this is only the beginning since "the large timber industries have recognized the potential and CLT starts catching on on the market".
Less successful was the 120,000 m³/yr large-scale project by British insurance group Legal & General. The purchased facilities were never brought into operation - now they are looking for a buyer, as is known in the industry. In terms of delivery times, machine suppliers currently are not facing major problems.

Experts also see great potential in Eastern Europe, Russia and France where a few weeks ago, Piveteaubois launched a large CLT line.

A need to catch up in America

"Potential, yes - infrastructure and know-how, no." This is the gist of how some Central European experts see the North American market by and large. "If Europe is the Champions League, the United States constitute the second division", as one machine supplier put it. Despite several announced production lines and mega-projects, the breakthrough is still far from being achieved.

Apart from lacking capacities as well as experience in terms of production, the United States also needs planners and skilled staff. "Often, objects are built by steel constructors who lack know-how and experience in wood construction. This holds many sources of error", a European producer puts a finger on the problem. But despite - or exactly because of this, the US market receives intensive attention from European producers and machine suppliers.

University professor Dr. Gerhard Schickhofer at the Graz University of Technology sees the future of CLT in prefabrication and modulization: "After developing the product, now we have to focus on the construction practice. In close collaboration with building technicians and architects, we must look at the entirety of building, move away from known systems and focus on wood-appropriate solutions. A lot of steps that are now taken care of at the construction site could also be moved to the production hall." Tangibly implemented solutions in this field would considerably help boosting the global spread of CLT.