Finnish log builder signs massive deal

The Pudasjärvi-headquartered log builder will deliver log structures for around 10 000 houses to be built in two locations, one of which is in the Mediterranean. The company has also designed the houses and actively participated in the project development in collaboration with the client since February.

“The framework deal we signed is worth roughly 250 million euros, but it contains a significant number of additional options for the client to expand the co-operation,” commented Mika Rytky, managing director of Kontio.

The seven-year deal is not only the largest in the history of the company, but also one of the largest export deals for construction components in Finland.

Rytky indicated that the deal would have been impossible unless the company had the courage to continue making investments amid the much-discussed downturn in the construction industry. The investments, he said, have enabled the company to bid for large projects while looking after the recovering domestic market.

The deliveries are set to start in proper in the first half of next year.

Building new markets

With Russia no longer a viable export market, Kontio has had to turn its attention elsewhere, finding some success. It has promised to deliver 39 five-star holiday apartments to Elatos Resort & Health Club, a luxury resort under construction in Greece.

Interest in Finnish log building, it estimated, has grown as a result of a shift toward more climate-friendly and responsible construction methods and the visibility attracted by the premium travel resorts built in Northern Finland.

“When a client flies to Finland on a private plane to become acquainted with log construction, the service, product and operational quality has to be top notch,” said Rytky.

Kontio has delivered over 50 000 log buildings to more than 30 countries over its 40-year history.