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Peab and Södra sign agreement on exclusive collaboration on sustainable frame solutions for the construction industry

Peab and Södra are starting a collaboration to jointly drive climate change in the construction industry. The goal is to develop a standardized ECO hybrid frame solution for industrial volume production of homes where material choices will be guided by function, climate benefit and resource efficiency.

During 2024, Peab and Södra have had an in-depth dialogue on how the industry can accelerate its sustainability work. Now the parties are taking the next step - with a shared ambition to develop the hybrid solution of the future for frames, where precast concrete and cross-laminated timber (CLT) work together to meet the toughest climate requirements.

The collaboration is based on a shared vision: that material choices should be functional, sustainable and material-neutral - with the right material in the right place. The solution will contribute to meeting the goals of the Paris Agreement and make it possible to build long-term sustainable housing based on both economics and climate impact.

"With this collaboration, we want to investigate how we can develop a hybrid frame solution that is viable on a large scale based on the parameters of economy, function and sustainability," says Andreas Berge, business area manager at Södra with responsibility for Södra Building Systems. It is about optimizing the whole by using the right material in the right place.

Peab also emphasizes that the solution is based on collaboration.

- By combining wood's low climate footprint and lightweight construction with concrete's robustness, stability and weight, we get the best of both worlds, says Carl Rülcker, acting CEO of Peabbolaget 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 towards building more sustainably - without sacrificing function, economy or buildability.

The collaboration is exclusive and focuses on developing a standardized ECO hybrid frame solution suitable for industrial housing production. In the spring of 2025, the parties will jointly investigate the conditions for moving forward with the development work.

About Peab and Byggelement

Peab is the Nordic region's community builder with 13,000 employees and a turnover of SEK 59 billion. With a local presence and focus on our own resources, we develop, construct and build everyday life where life is lived. The head office is located in Förslöv on the Bjäre peninsula in Skåne.

Byggelement was started by the Peab Group in 2003 and is today one of Sweden's leading suppliers of complete frame systems and prefabricated elements in climate-improved concrete. The company produces and delivers project-adapted frames and elements directly to the construction site, ready for assembly.

About Södra and Byggsystem

Södra was founded in 1938 with the idea that we are stronger together. Today, Södra is Sweden's largest forest owners' association with more than 50,000 family foresters as members. Together, the members of Södra own a world-leading industry that processes forest raw materials into renewable products within pulp, wood, building systems, energy and biochemicals. Our forest industry employs 3,200 people and in 2024, Södra had a turnover of SEK 29 billion.

Building Systems is a business area within Södra and has been producing cross-laminated timber for large-scale construction since 2019. The production outside Varberg is co-located with Södra's pulp mill and sawmill, which provides access to green energy and ready-made infrastructure. It also creates good conditions for efficient logistics and provides the opportunity to wisely utilize a larger part of the value chain and make use of the entire tree.

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