In October 2020, Pervanovo Invest AB, the parent company of the group of companies that includes Välinge Innovation and Bjelin, decided to invest in a high-tech, fully integrated and automated production facility in Croatia for the production of hardened hardwood floors on a large scale for a global market.
The new Ogulin 2 plant is being built adjacent to the Ogulin 1 parquet flooring plant in the city of Ogulin, Croatia. The factory’s production volume will increase gradually from 2023 and when Ogulin 2 is fully completed in 2027, it will be the world’s largest wooden floor factory with a production capacity exceeding 20 million square meters per year. The total annual total volume for floor production in Viken and Ogulin 2 then amounts to 30 million sq.m.
The new factory will be built on a 330,000 sq m land area located along the motorway between the cities of Zagreb and Split. The factory’s total area is 100,000 sqm and the value of investments in land, buildings, facilities and machinery is valued at EUR 200 million. (CAPEX). The investment is financed for the most part by equity.
In the high-tech and automated factory Ogulin 2, the various floor components wood powder, surface treatments and the core material will be manufactured. The raw material required for production comes largely from wood waste from Bjelin’s other factories in Ogulin, Bjelovar and Otok, all in Croatia. Pressing, profiling, surface treatment and the final packaging of the floors take place in automated production processes that have also been developed by Välinge Innovation.
To match the investments in production capacity, the company group will make strategic investments in the sales organization and marketing in Europe, the USA and Asia in order to strengthen their brands globally.
”I am very pleased that after ten years of hard focus and large development costs, we are ready to scale up the wood powder-based production and introduce the next generation of wooden floors – the hardened wood, which is both cost-effective and environmentally friendly to produce. The result is an enormously positive response from the markets, historically on a par with the three-layer parquet that was launched in 1945 by the Swedish companies Kährs and Tarkett. The success has given us the confidence to make this groundbreaking investment in Croatia, where we have access to high-quality oak forest in combination with skilled competent employees,” says Darko Pervan, CEO, Pervanovo Invest AB.
”We are very happy that our owners are prepared to make such a powerful investment in Woodura technology. We hope that the success of our sister company and our main partner Bjelin, which markets and sells the floors, will encourage more people to sign a license for this innovative technology,” says Niclas Håkansson, CEO, Välinge Innovation .
”We are proud that our owner Pervanovo Invest AB is making this massive investment in Croatia and we are extremely pleased to launch Välinge Innovations Woodura technology together with our Swedish colleagues. In the last two years, all our factories have been upgraded to a high technical level, but this new investment in technology in Ogulin is something completely unique. It gives Bjelin a world-leading position and the investment means a direct increase in the workforce in Croatia with 600 new employees, thus increasing from 800 to 1,400 employees. The investment also creates new jobs in the production units in Bjelovar and Otok, where we increase the production of top veneer and refine the wood waste for production in Ogulin 2,” says Stjepan Vojnic, CEO, Bjelin Croatia .
The post World’s largest wood flooring factory to be build in Croatia appeared first on Timber Industry News.