In a strategic move reflecting the evolving dynamics of the Swedish housing market, construction giant Skanska has finalized the sale of its BoKlok Byggsystem modular housing factory located in Gullringen, Sweden. The facility has been acquired by Surewood Housing AB, a subsidiary of Gelba and Active Invest, for approximately SEK 110 million (US$10.3 million). The official handover is scheduled for February 20, 2025.
Photos – Housing Innovation Collaborative
Established in the mid-1990s as a collaborative venture between Skanska and Swedish furniture retailer IKEA, BoKlok was conceived to provide affordable housing solutions for individuals with average incomes. The Gullringen factory has been central to this mission, producing modular homes designed to be both cost-effective and sustainable. In 2017, Skanska invested approximately SEK 250 million to enhance the factory’s capacity and efficiency, aiming for a 50% increase in production.
Despite these investments, recent economic challenges, including inflation and rising interest rates, have led to a downturn in the residential construction sector across Sweden and Europe. This economic climate has adversely affected BoKlok’s operations, culminating in an operating loss of SEK 614 million (US$57.3 million) in 2024.
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Surewood Housing AB’s acquisition of the Gullringen facility comes at a time when over half of Sweden’s municipalities are experiencing housing shortages. To address this demand, an estimated 52,000 homes need to be constructed annually until 2030. Surewood specializes in timber housing solutions, offering a range of residences from townhouses to four-story apartment buildings. The company plans to commence production at the Gullringen factory in the second quarter of 2025, initially creating 40 new jobs.
Leif West, Chairman of Surewood Housing Holding, stated, “The acquisition is a natural next step that will enable us to offer homes, manufactured in the state-of-the-art factory in Gullringen, to customers throughout the country.”
This transaction underscores the shifting landscape of the Swedish housing market, highlighting the challenges faced by traditional construction models and the growing importance of adaptable, modular solutions in meeting contemporary housing needs.
Sources: Skanska – Global corporate website, Construction Briefing
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Gary Fleisher, The Modcoach, writes about the modular and offsite construction industry at Modular Home Source.
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