Bankrupt Katerra sells off factories
Katerra, the cross-laminated-timber (CLT) and building products producer that was a rising star in the future of mass timber construction before declaring bankruptcy, has sold off its two primary manufacturing facilities.
Mercer International received approval from bankruptcy court to acquire Katerra’s 270,000-square-foot, state-of-the-art CLT factory in Spokane, Wa. for $50 million. The facility opened in 2019 and was presented to the industry as the most cutting-edge manufacturing center of its kind.
But Katerra declared bankruptcy earlier this summer after lenders pulled out and funds dried up.
Mercer is a global forest products company with operations in Germany and Canada. The company has a consolidated annual production capacity of 2.2 million tons of pulp and 550 million board feet of lumber.
“We are very pleased with our impending acquisition of the facility,” said Mercer CEO David Gandossi. “It represents an attractive entry point for us into the CLT business with a near new state-of-the-art facility.”
CLT is an engineered wood product produced from multiple layers of lumber and adhesive; each layer laid up with its grain running perpendicular to the layer adjacent and pressed under heat to create large, high strength panels. The panels are used in commercial and residential construction.
Gandossi added that the factor “fits well with our strategy to expand in the solid wood products space and aligns with a core value to provide sustainable and carbon reducing alternatives for a warming planet
Additionally, Philadelphia-based Volumetric Building Companies (VBC) is purchasing Katerra’s 577,000-square-foot plant in Tracy, Calif. The facility also opened in 2019 and produced building components including wall panels, floor systems, and windows.
"With the continued growth and success of VBC, we were exploring options to expand our manufacturing footprint and industry influence," said Vaughan Buckley, CEO of VBC. "Katerra's Tracy location provides an exceptional opportunity to bring our hands-on construction and manufacturing expertise to a state-of-the-art facility and build our presence on the West Coast.”
The financial terms of VBC's acquisition were not disclosed.
VBC has advised former Katerra employees to apply for jobs at the Tracy location.
"Katerra's bankruptcy and the shutdown of the Tracy location significantly impacted its employees as well as a wide range of customers," added Buckley. "We are hopeful that we can provide jobs to many of those employees and help address the needs of those customers. We well understand the current state of play in the construction sector and our goal is to provide great products, superior service and customized solutions for the vibrant California and western U.S. markets."
