Market
Our revenue comes entirely from Finland, and we estimate the relevant and potential wooden element market to be roughly EUR 400 million. This estimate is based on the medium-term overall volume (production volume, m²) and the estimated average prices of the different product groups.
Our wooden elements can be used in a variety of large and smaller buildings, hybrid construction and apartment buildings, where, for example, the roof element system is a competitive solution. In our view, market trends support the growth of wood construction and the use of wooden elements.
Wall elements currently account for the majority of the market and market potential. We estimate that the roof element system and facade elements will increase their relative share in the coming years, and we expect these product groups to increase their relative share of our revenue.
Our market shares vary by product group. Roof elements have the largest market share and we estimate it to be around 70%. The revenue of facade and roof element system products has grown steadily. The market in wall elements for single store buildings is fragmented, and we estimate our market share is approximately 20%.
Growth drivers for the market
Tightening construction regulation and environmental targets
We believe accelerating climate change, as well as carbon footprint and recycling requirements, together with legislative requirements for the green transition, will accelerate the use of wooden elements in construction.
Wood is already the dominant material in detached house and single-store construction. We also believe that the use of wood in apartment buildings will accelerate when the carbon footprint becomes part of the building regulation, for example, wood facade elements or roof element systems will be installed in a concrete-built apartment building. In Finland, the new Act on Land Use and Building entered into force on 1 January 2025, from which point onward all companies supplying building materials are required to report carbon footprint and hand print data for their products, excluding small-scale construction.
The popularity of prefabricated construction grows thanks to quality and cost-effectiveness
The growing requirements on quality and cost-effectiveness within the construction industry are moving construction from sites to factories. Wooden elements enable cost-effective, uniform-quality and environmentally friendly construction. Wooden elements can be prefabricated at the factory and transported for installation to construction sites, which allows buildings to be quickly and efficiently protected from the weather after the foundation is laid.
In construction, more and more attention are also paid to moisture control. Wooden element construction enables weather-protected manufacturing and storage of wooden elements and their transportation to construction sites in the desired installation order.
Due to the benefits of prefabrication, such as quality and cost-effectiveness, its popularity is expected to increase among builders.
Hybrid construction is growing as an alternative to solely wood-based construction
We expect the demand for our products to increase, especially thanks to products needed for concrete and steel framed buildings. Our elements are suitable whether the frame of the building is wood, steel of concrete. Our product range includes facade and roof elements for hybrid construction projects. By using wood-based elements in combination with concrete and steel frame buildings, the carbon footprint of the building can be reduced, the building envelope can be quickly protected from the weather, and heating can be turned on.
Customers
Our customer base consists of Finnish builders and construction companies. The majority of our annual revenue is based on project customers and smaller part is based on annual contracts. Our customer base is highly diversified: In 2023, the largest customer accounted for about 7% of revenue, while the 10 largest customers accounted for some 35% of revenue.
The LapWall LEKO® wood element system is a trademark known to professionals. Our customer satisfaction is high, and we have a good overall reputation.
Distribution of net sales by clients 2023
Locations
Pyhäntä
Periojantie 3
92930 Pyhäntä
Pälkäne
Yrittäjäntie 7
36600 Pälkäne
Veteli
Koulutie 142
69700 Veteli
Oulu
Pilot Business Park
Lentokatu 2
90460 Oulunsalo
Vantaa
Teknobulevardi 3
01530 Vantaa
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