Mercer International Inc., a global forest products company based in Vancouver, BC, reported it received approval from the applicable Bankruptcy Court for the purchase by its subsidiary, Blue Varsity, of the cross-laminated timber (CLT) manufacturing facility in Spokane, Wash. formerly owned by Katerra for $50 million through a bidding process.

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.

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Huber Engineered Woods LLC (HEW), a subsidiary of J.M. Huber Corp., has announced that it will build a new oriented strandboard (OSB) facility in Cohasset, Minn., representing a $440 million investment. The plant will increase the company’s production of ZIP System and AdvanTech structural panels.

“We look forward to being an integral part of the community and a key partner in the future success of the county and the state. We are pleased and excited to bring this new investment and set of employment opportunities to Itasca County and the surrounding areas,” says HEW President Brian Carlson. “It is our desire for our new Minnesota operations to be a shining example of our company’s commitment to building a diverse and inclusive workforce.”

Contingent upon site acquisition, approval of certain legislative initiatives and financial assistance from additional state entities, the Cohasset location will be HEW’s sixth mill in the U.S. and its first presence in Minnesota, as well as its largest capital investment to date. The new mill will expand HEW’s current production footprint of five mills located in Georgia, Maine, Tennessee, Oklahoma and Virginia and represent a production increase of 30%.

Carlson adds, “We’ve seen a strong start to 2021 and are optimistic for continued growth of our specialty products in the coming years. We are pleased to share our plans for increased production to help keep pace with the growing demands of our customers for ZIP System and AdvanTech products, as well as future innovative solutions that we strive to deliver.”

The new 750,000 sq. ft. HEW manufacturing facility will be located on more than 400 acres, and is located next to Minnesota Power’s Boswell Energy Center. Announced earlier this year, by 2035 the utility intends to close and convert Boswell’s remaining coal-fired units.

“This new chapter of growth for our company is the result of tremendous collaboration between our organization, Governor Walz and the state of Minnesota including Dept. of Employment and Economic Development (DEED), Iron Range Resources and Rehabilitation Board (IRRRB), and MPCA, and the local community, the city of Cohasset, Itasca County and Minnesota Power,” says Carlson.

“I support and recognize the significance of this project, as does my leadership team,” remarks Governor Tim Walz. “Minnesota’s state government commissioners are making the success and expedition of this project a top priority. Huber is an innovative and unique leader in the building products industry, and we are excited they are joining the successful companies that operate and thrive in northeastern Minnesota.”

This project coming to the state of Minnesota, and the selected Boswell site, is contingent upon financial assistance from IRRRB (which has voted to approve a $15 million forgivable loan requiring the plant employ at least 100 for its first six years), the state of Minnesota, DEED (which has committed to a $20 million investment in the project), the city of Cohasset, Itasca County and Minnesota Power. The manufacturing facility is projected to provide over 150 direct new jobs, while contributing growth opportunities in adjacent local industries including timber and trucking.