Thursday, December 21, 2017

Sweden’s Lindbäck Opens New Super Modular Factory

Lindbäck's new factory at Haraholmen near Piteå is not big - it's huge! 

The factory can hold seven football fields inside its 452,000 sq ft. When it was opened on Tuesday, the factory was filled with hundreds of invited people - and a significant future confidence.

Lindbäck's new modular home factory is ready to begin producing affordable apartments and triple its production. The factory was opened by Sweden’s Housing Minister Peter Eriksson.

Stefan Lindbäck, CEO on the left; Sweden's Housing Minister,Peter Eriksson on the right

"This is great," says Stefan Lindbäck, CEO.

About half a billion have been pumped into the factory to triple the company's production capacity. From 800 apartments per year to 2,400 per year, including the factory in Öjebyn. Or four apartments per day, only in the new factory at Haraholmen. By 2021, the pace will be scaled up to a total of 2,500 apartments per year.

It has taken 3 years for the factory to go from proposal to reality. The factory is said to be Europe's most modern, thanks to new automations. Production will start at the end of January when all machines are in place.

"Then we will start by spitting out apartments," says Stefan Lindbäck.

Bostadsjätten will continue the construction of both condominiums and single family homes. Finished apartment modules with interior walls, toilets and kitchens that are ready to be assembled.

The focus is on building climate-smart with wood. In addition, the factory is powered by solar cells.

A majority of Swedes believe in falling housing prices for the first time in five years. But Lindbäck does not see any concerns about the business. Stefan Lindbäck believes that the luxury end has disappeared from the market.

Lindbäck's strategy is instead to be high quality and climate-friendly at a reasonable price. Production costs should be lowered by the huge industrial output.

What has been built in Sweden has often been built too expensive. Therefore, Lindbäck's strategy to build affordable alternatives is welcomed by Sweden home buyers and renters. 

“It is built for ordinary people with regular wallets and incomes. Not only for those with thick wallets and rich parents”, said StefanLindbäck. 

The investment has given 150 new jobs. Since the autumn of 2015, 250 people have been hired and the total staff has now grown to 493.

"It is noticeable when you go to town and often discover colleagues," says Sabina Lestander, employed at the factory in Öjebyn.

Colleague Louise Hedlund fills in:"When we gather here, we understand how many we actually are. As a single big family, says colleague Louise Hedlund.


Anonymous said...

That is one bad ass factory. No US company can match it.

Doug Stimpson said...

We better learn from the europeans how they got the housing market to embrace modular with such enthusiasm. A concept which began here in the US which has stalled. We just haven't done much to foster any growing interest. Shame on us!