CENTRAL EUROPE Erbud takes in GWI for wooden mod cons

Construction

26 January 2022

Opr./edited by NN

The value of the German modular wooden construction market is expected to triple over the next decade (photo: Mod21)

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Polish construction firm Erbud has merged its subsidiary Mod21 with German wooden modular buildings specialist GWI to establish a new company, also called Mod21.

The new company will be chaired by Jürgen Kugelberg, the current CEO of GWI, who will be responsible for residential, office and industrial construction, and Theodor Kaczmarczyk, the CEO of Mod21, whose duties will include the supervision of modular construction.

The decision to merge MOD21 and GWI is a bold and well thought-out move. It is a response to the needs and growing challenges of the construction industry. We want to build faster, more sustainably, tailoring our offer to clients’ individual requirements. The new company combines GWI’s extensive experience, recognition and unique credentials on the German market with Mod21’s innovative business model. I’m convinced that the alliance of competences and the complementary business of GWI and MOD21 will result in synergy, which will benefit both the Erbud Group and our clients.
Dariusz Grzeszczak, the CEO of the Erbud Group

GWI has been operating on the German market for 25 years, having completed the ICE tunnel between Cologne and Bonn, as well as a number of prestigious buildings in Rhineland-Westphalia and especially in Düsseldorf – such as the Vabali leisure centre, Huawei’s headquarters in the Silizium office building, the Kö-Quartier commercial and retail centre and a luxury department store at Königsalle 18. It will continue to construct residential, office and industrial buildings, and in terms of operations will support Mod21 in hybrid buildings with all the elements of traditional construction necessary for the implementation of modular buildings: staircases, lift shafts and foundations.

Mod21 has been set up to focus on the construction of large wooden modular buildings – hotels, office towers, dormitories, hospitals and public utility facilities. The company aims to reach full production capacity in 2026 and will manufacture app. 100,000 sqm of modules per year. In 2026, the company aims to be generating sales revenues of around PLN 650 mln with a yield of 5–8 pct. The value of the German market is currently estimated at over EUR 3 bln and is expected to triple over the next decade, and according to the German Timber Industry Council (DWHR), modular wooden construction is projected to account for half of the construction market in Germany by 2050.