Katerra Receives $865 Million To Fund Massive CLT Plant

by | Apr 4, 2018 | News

Katerra, a high-tech construction firm, has secured $865 million in funding from SoftBank Vision Fund. That money will go toward ongoing projects in the U.S., like the company’s planned cross-laminated timber plant in Washington, as well as research and development activities.

Katerra says its upcoming 250,000-square-foot Washington plant will help scale up U.S. production of CLT so that the material can be more broadly adopted across the construction industry. Katerra’s manufacturing presence in the region will provide hundreds of jobs and stimulate additional jobs through the larger supply chain and associated industries, including design, engineering, and construction. More than 150 construction-specific jobs will be created to build the CLT factory.

Cross-laminated timber, or CLT, is a key ingredient in the so-called timber towers – multi-story high rises built of wood, some reaching 18 stories or higher. Katerra says CLT is valued due to its low carbon footprint and strength.

“CLT… is a material that creates beautiful spaces, is designed for manufacturing, and is sustainable all at the same time,” said Michael Marks, chairman and co-founder of Katerra. “This material represents a great opportunity to create new value within the construction industry and will be central to many of the projects we’ll be designing and building. We feel very comfortable and excited, particularly with the knowledgeable team we have, to make the jump into manufacturing mass timber. We are ready to help bring mass timber to the mainstream of U.S. construction.”

Katerra is already applying its high-tech construction techniques to manufacture building sections in an existing Phoenix factory, in processes similar to auto plants. The Phoenix plant uses CR Onsrud and Laguna machinery, and fabricates rooms and building sections, including cabinetry, plumbing and wiring.

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/katerra-receives-865-million-fund-massive-cross-laminated-timber?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news

Washington OK’s Mass Timber Construction For State Building Codes

by | Mar 23, 2018 | News

Washington State legislators changed building codes in new legislation, a move expected to increase in the use of mass timber products in commercial and residential construction.

The Washington Forest Protection Association says the move will boost business for rural communities and forest landowners and will lead to an increase in the use of mass timber products in commercial and residential construction.

Mass timber products like cross-laminated timber (CLT) have been on the upswing in Washington in recent years, with Vaagen Brothers Lumber of Colville. Wash., and Katerra, a California company both announcing CLT factories in Eastern Washington. The material is increasingly being used in buildings around the state, according to the Washington Forest Products Association.

For Katerra, founded in 2015, CLT is an element in a broader strategy for resetting the building and construction industry. The company announced $865 million Series D funding round led by the SoftBank Vision Fund to fund its new plant in Washington, and it has already accumulated more than $1.3 billion in bookings for new construction, spanning the multi-family, student and senior housing, and hospitality sectors. It already has a fully operational manufacturing facility in Phoenix.

“The $12 trillion construction industry is extremely fragmented with tens of thousands of companies using minimal levels of technology. While labor-productivity growth has skyrocketed in the overall global economy, the construction industry has averaged only 1% annual productivity growth over the past two decades,” said Jeffrey Housenbold, managing partner for SoftBank Investment Advisers. New investors in Katerra’s latest the round include the Canada Pension Plan Investment Board (CPPIB), a private investment fund managed by Soros Fund Management LLC, Tavistock Group, Navitas Capital, DivcoWest, and others.

Read more on this from Woodworking Network at https://www.woodworkingnetwork.com/news/woodworking-industry-news/washington-state-wil-revise-building-codes-okay-mass-timber.