Steico LVL factory build to start in July

The company is also nearing completion of lending negotiations with a bank consortium to fund the project, while the Polish government has agreed a 10-year tax exemption linked to the Czarna Woda development site.

Steico revealed in March that it was planning to build its own LVL factory at Czarna Woda, where it already operates two production plants for hardboard and a wood fibre insulation board factory. A second wood fibre insulation board factory is also to be developed on the site.

Raute will supply the production equipment for the new LVL factory which will have an initial capacity of 80,000m3. The plant is expected to produce parallel and cross-wise glued LVL in thicknesses of 20-90mm.

The system will be of modular design so capacity can be increased at a later stage.

“As a commodity, LVL has been part of the Steico range since 2008 and it has seen a continuous increase in demand in recent years,” Steico said.

“Investing in a production system increases the added value and reduces risks on the procurement side. On the sales side, it strengthens the position of Steico as a system provider.”

Currently, Steico sources its LVL from Russia and Finland for its structural beam and I-joist flange products.

The move to in-house production is expected to deliver significant improvements in operating margins.