Katerra, a mass timber and modular turnkey construction business founded in 2015, filed Chapter 11 bankruptcy in early June. The $150 million CLT plant, which was commissioned in May 2019, was subsequently shut down.
The facility is located on 54 acres and is equipped with extensive automation technologies including one of the largest CLT presses in the world. The plant has capacity of approximately 13MMSF of 5-ply panels annually or 140,000 m3 of annual production.
David Gandossi, CEO of Mercer, states, “We are very pleased with our impending acquisition of the facility. It represents an attractive entry point for us into the CLT business with a near new state-of-the-art facility. It fits well with our strategy to expand in the solid wood products space and aligns with a core value to provide sustainable and carbon reducing alternatives for a warming planet.”
Mercer International has operations in Germany and Canada and reports a consolidated annual production capacity of 2.2 million tonnes of pulp and 550MMBF of lumber.
Another new facility formerly owned by Katerra, a component manufacturing plant in Tracy, Calif., was acquired through a bidding process by Philadelphia-based Volumetric Building Companies (VAC). The company defines itself as a “volumetric modular business that simplifies complex issues by integrating architecture, logistics, manufacturing, and construction into a single package to produce multifamily housing solutions in less time at a greater return.”
Katerra went through $3 billion in equity investments since its founding. In the bankruptcy filing Katerra estimated liabilities of $1 billion to $10 billion
Katerra wasn’t shy about wanting to shake up—and speed up—the conventional construction industry. In addition to building manufacturing plants, it bought everything from architectural firms, to construction firms to dirt contractors. But many of the projects it entered into appeared to experience the same hiccups and cost overruns that conventional on-site construction projects sometimes encounter, and perhaps with less quality, as Katerra tacked on substantial costs related to re-work issues.
Katerra experienced nearly $2.8 billion in financial losses in 2018, 2019 and 2020.
Both Mercer and VAC were stalking-horse bidders whose original bids prevailed for their respective acquisitions.
SmartLam North America announced several major projects that will have a significant impact to the mass timber industry. SmartLam North America, which is the first U.S. manufacturer and is reportedly the largest manufacturer in North America of cross laminated timber (CLT), announced it will build a $50 million glulam…
Article by Rich Donnell, Editor-In-Chief, Panel World September 2022 – If you think the pandemic caused the death of live trade shows, think again. Just take one quick browse through the Panel World September 2022 issue. In fact, trade shows almost snowballed us over this month…
Mika Saariaho’s starting date as President and CEO of Raute Corp. has been specified. He will start in the position on October 1, 2022. On May 24, 2022, Raute announced Saariaho’s appointment and that he will assume his position at the latest on November 24, 2022…
Louisiana Pacific and Biele Group have successfully implemented their first project—a shake profile production line in Swan Valley, Manitoba, Canada. This investment is part of the company’s expansion plans for siding products within their LP SmartSide…
The International Woodworking Fair (IWF) at the Georgia World Congress Center completed four days of tremendous activity on Friday, dominated by 925 exhibits. Machinery on tap was mostly downstream, remanufacturing and secondary processing, with some primary manufacturing technologies and laminate…
Find Us On Social
The monthly Panel World Industry Newsletter reaches over 3,000 who represent primary panel production operations.
Panel World is delivered six times per year to North American and international professionals, who represent primary panel production operations. Subscriptions are FREE to qualified individuals.
Complete the online form so we can direct you to the appropriate Sales Representative. Contact us today!