Both new facilities will be developed at the group’s Czarna Woda site in Poland. Steico said moving into LVL production would strengthen its position as a system supplier for innovative timber construction. Currently the company sources LVL from Russia and Finland for its structural beam and I-joist flange products.

The plant’s capacity is expected to be about 80,000m3 and may be in production before the end of 2015. Raute will supply the production equipment.

“The investment in a production facility increases the depth of added value and greatly reduces risks on the procurement side going forward,” said Steico.

“On the sales side it firmly reinforces Steico as a system provider.” The move would make Steico the only I-joist producer in Europe to make all the components for its I-joist products.

The new wood fibre plant will produce boards using an organic wet process.

“The demand for wood fibre insulation materials increased rapidly during 2013 and again dynamically in the first quarter of 2014,” said Steico.

“Consolidated revenue [for wood fibre insulation products] at the end of February 2014 is already around 25% above the same period last year.”

The new line will be formed from existing Steico machinery. Steico said wet process manufactured boards used the timber’s own lignin as the binder, avoiding the addition of adhesive as with dry process boards.