Peab and Södra sign agreement on exclusive collaboration concerning sustainable frame solutions for the construction industry
Peab and Södra have launched a collaboration to jointly promote the climate transition in the construction industry. The aim is to create a standardised ECO-hybrid frame solution for industrial volume production of housing, where the choice of material is guided by function, climate benefit and resource efficiency.
In 2024, Peab and Södra conducted an in-depth dialogue on how the industry can accelerate its sustainable transformation. The parties are now taking the next step – united in their ambition to develop a hybrid solution of the future for frames, where precast concrete is combined with cross-laminated timber (CLT) to meet the toughest climate requirements.
The collaboration is based on a joint vision: the choice of material must be functional, sustainable and material-neutral – with the right material in the right place. The solution will help to reach the goals of the Paris Agreement and enable the construction of long-term sustainable housing in terms of both cost and climate impact.
“The aim of our collaboration is to explore how we can develop a hybrid frame solution that is viable on a large scale in terms of cost, function and sustainability,” said Andreas Berge, Business Area President at Södra with responsibility for Södra Building Systems. “It’s about total optimisation by using the right materials in the right place.”
Peab also emphasised that the solution is based on collaboration.
“By combining wood’s low carbon footprint and lightweight constructions with the robustness, stability and weight of concrete, we will achieve the best of both worlds,” said Carl Rülcker, Interim President of the Peab company Byggelement. “We see great potential in a solution that is not based on either/or, but on collaboration. With this initiative, we are taking another step forward towards building more sustainably – without compromising on function, cost or buildability.”
The collaboration is exclusive and focused on developing a standardised ECO hybrid frame solution that is suitable for industrial housing production. In spring 2025, the parties will come together to investigate the conditions for moving forward with the development process.
About Peab and Byggelement
Peab is the Nordic Community Builder with 13,000 employees and net sales of SEK 59 billion. With a local presence and focus on our own resources we develop, do the groundwork and build everyday life where it’s lived. The company’s headquarters are located in Förslöv on the Bjäre Peninsula in southern Sweden.
Byggelement was founded by the Peab Group in 2003 and is now one of Sweden’s leading suppliers of complete structural systems in prefabricated concrete elements. The company produces and delivers project-adapted frames and elements directly to the construction site, ready for assembly.
About Södra and Building systems
Södra was founded in 1938 on the idea that we are stronger together. Södra is now the largest forest-owner association in Sweden, with more than 50,000 family forest owners as members. Together, the members of Södra own a world-leading industrial operation that processes forest raw material into renewable products such as pulp, timber, building systems, energy and biochemicals. About 3,200 people are employed in our forest industry and in 2024, Södra generated sales of SEK 29 billion.
Building systems is one of Södra’s business areas and has been producing CLT for large-scale construction since 2019. The production outside Varberg is co-located with Södra’s pulp mills and sawmills, providing access to green energy and finished infrastructure. It also creates favourable conditions for efficient logistics and allows for smart use of a larger part of the value chain, and making use of the whole tree.