Bjelin increases investments in production

Bjelin will counter the general scarcity of building materials that affects the construction and flooring industry by increasing the investments in its production capabilities. Russia’s war on Ukraine will undoubtedly create negative consequences for the industry by creating delays of construction projects.

Bjelin gets all of its oak raw material from Croatia, but both Russia and Ukraine are big exporters of oak and other wooden materials for the flooring industry. Both countries have a substantial production of parquet flooring which is now directly affected by the ongoing war and subsequent sanctions. According to assessments by Bjelin, 25 percent of oak slats produced for the European markets originates in Russia and Ukraine. The scarcity of oak in general and parquet flooring in particular will be significant and many construction projects are at risk of experiencing considerable delays from cancellation of flooring deliveries.

Bjelin and the Pervanovo Group’s manufacturing facilities are located in Sweden and Croatia with the most important raw materials coming from Croatian forests. Bjelin’s production capabilities are not affected by the general scarcity of the wooden raw materials. In order to counter the negative consequences of the general shortage of wooden flooring that is affecting the industry, the group will increase its production and work proactively with license holders and other flooring manufacturers.

Last year saw the start of construction of the wooden flooring factory Ogulin 2, located in Ogulin Croatia. Once finished, the factory will be the world’s largest wooden flooring factory. The group has decided to increase and advance the investments in existing facilities and speed up the completion of the new Croatian flooring factory.

The production of hardened wooden flooring, manufactured with Woodura patented technology will be prioritized. This production requires ten times less oak compared to traditional manufacturing of parquet flooring, which in turn can result in more wooden flooring out of less raw materials. In the short run, Bjelin will focus on products which can be produced in larger quantities.

The aim is to make a considerable contribution in replacing part of the capacity to produce wooden flooring that is now being lost in connection with Russia’s war on Ukraine.

The group has ceased with immediate effect all sales to Russia and Belarus which has been communicated through an earlier press release from Bjelin . The group supports Ukraine through donations to the international Red Cross and UNHCR.