The Cutting Edge: Estonia's Leading Timber Construction Enterprises by Eesti Puitmajaliit/Estonian Woodhouse Association

The Estonian Woodhouse Association (EWA) was established in 1999 by 17 companies. At present, there are over 50 members, all of them have been operating in the sector for many years. The EWA is the framework organisation of the Estonian Wooden Houses Cluster (EWHC) which was created to improve the international competitiveness and raise the added value and export turnover of cluster companies. Contact: Estonian Woodhouse Association Estonian Wooden Houses Cluster Toompuiestee 21, 10137 Tallinn, Estonia www.woodhouse.ee info@woodhouse.ee

Second edition, Tallinn 2019 Published by Estonian Woodhouse Association Printed by Greif Editor Veronika Valk-Siska Designer Katri Karing Proofreader Justin Ions ISBN 978-9949-88-695-1 Photo credits Cover photo ©Katri Karing P 10 ©Renee Altrov P 11 ©Gabriela Liivamägi P 56 ©Aivo Kallas P 66 ©Raul Mee P 76 ©Aivo Parmson This publication was supported by European Regional Development Fund through Enterprise Estonia cluster development program as "Estonian Wooden Houses Exporters Cluster Project".

www.estonia.ee

Timber building enterprises

Introduction Estonia's timber building industry toward a sustainable future Wood is the key to a quality living environment Estonia the leading exporter of timber buildings in Europe Estonian timber buildings around the world Akso-Haus Aru Grupp Astel Bauindustrie Tehas ELH Palkehitus EstHus EstNor Estonian Log Cabins Finnlog Greencube Greentec Houses Harmet Hobbiton KMT Prefab Majand Matek Mountain Loghome Nord Homes Nordic Houses Palmako Palmatin Peetri Puit Pinska Production House Q-haus Ritsu Saare Erek Tender Tene Timbeco Valmer Puit Varola Vipson

8 10 11 12 13 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78

Dear reader The book you have in your hands tells a story of a tiny country that has achieved great success. Estonia's economy does not bear comparison to that of USA, Germany or China, and yet there are elds in which we have become leaders both in Europe and worldwide. Having already achieved international recognition in IT and cybersecurity, among others, we can now add the production of timber buildings to the list. More than 90% of Estonia's prefabricated timber building production is exported, mainly to the Nordic countries, but also to over 70 countries worldwide each country with its distinct economic conditions, climate, geographic and logistical challenges, potential for earthquakes, and so on. If you are Estonian, it is very likely that you have relatives, friends or acquaintances that live or work in these buildings. For many years, we have been trustworthy partners to our private, public and corporate clients in Europe, producing high-quality dwellings and recreational homes, o ce blocks and public buildings. Thanks to the strength of these relationships and the respect these partners have for our industry and its products, we have grown into the largest exporter of timber buildings in Europe. We have achieved this trust through our tenacity, reliability, our insistence on quality and our willingness to seek out, develop and implement new technologies.

We believe that wood is the construction material of tomorrow. Only through the widespread use of this versatile and sustainable natural material can we hope to preserve the environment we enjoy so much today for future generations. We choose to make an impact on this future through the development of sustainable o -site production processes, through the use of our renewable natural resources especially wood and through our focus on energy e ciency. The timber building industry is actively engaged in meeting these challenges, because each challenge provides an opportunity to take a step closer to this better future. The interviews and images in this book provide insight and illustrations of the many and varied patterns that make up the best of our timber building industry today, they indicate the plans of the leaders of these enterprises and showcase buildings that have won the acclaim of their clients and end-users. All the companies presented in this book are members of the Estonian Wooden Houses Cluster and Estonian Woodhouse Association, which together form one of the leading organisations of the Estonian timber building industry. We have selected only those companies we believe to be the best Estonian producers of timber buildings in factory conditions. These companies are the drivers of this success story.

Lauri Kivil Estonian Wooden Houses Cluster manager Director of the Woodhouse Association

Estonia's timber building industry

toward a sustainable future

Estonian timber buildings have become an international brand. Our timber construction industry has become a catalyst for research and development, energy e ciency, and successful export. Timber construction adds great value to our most abundant, renewable natural resource wood. In developing new technologies, the strategic decisions of our timber building manufacturers are guided by principles of sustainability. That involves energy e ciency, engineering physics, and better management of the indoor climate. Compared with other construction technologies, timber o ers a simpler solution to the challenge of attaining the lowest levels of energy consumption, while also maintaining the highest standards of quality. Timber enables largescale factory-based construction which enables better worked out engineering solutions and improves productivity. Today, mainly due to climate policy goals, the construction of timber buildings is promoted in many countries and the market for the industry is therefore expanding. There seem to be no obvious limits to this growth in the foreseeable future. The courage of Estonian Wooden Houses Cluster in implementing joint development projects and encouraging the sharing of knowledge and experience within the sector has led Estonia to become the biggest exporter of timber buildings in Europe by production volume. Last year, timber building exports from Estonia were valued at 321 million euros and Estonia contributed 24% of all timber buildings exported from the European Union. Nonetheless, it is clear that Estonia's timber building industry still has enormous potential and is destined for greater heights.

Rene Tammist Minister of entrepreneurship and information technology

Wood is the key to a quality living environment The Estonian timber industry is profoundly important for the Estonian economy, creating value and jobs, especially in rural areas. There are about 110 000 forest owners in Estonia, and few other industries are capable of having such a wide-ranging impact on our society. One cannot underestimate the potential of the Estonian timber sector for signi cantly increasing the productivity of the Estonian economy. Not only is timber the biggest eld of industry, but it is embedded in our culture as a natural material to build from. Wood is both a human-friendly and environmentally-friendly construction material. It breathes, it has an attractive smell and its tactility and texture are respected and admired all over the world. Moreover, the le over materials from the timber manufacturing and construction processes are hardly wasted, being a source of energy production. A side-e ect of timber construction is that by using wood in this way we limit the release of carbons while burning wood and leaving it to rot in the forest release carbon into the atmosphere. Today, the forest is our natural symbol. By making intelligent use of it in architecture and construction, we make an essential contribution to the quality and uniqueness of living in Estonia.

Yoko Alender Member of Parliament

Estonia is the leading exporter of timber buildings in Europe

Denmark

Source: Statistics Estonia

Main markets of Estonian timber building sector 2017 Italy

1% 1% Iceland 2% France

6% Finland Holland

31% Norway

Total export

321 MEUR

Germany

17%

23%

Sweden

MEUR

400

Export of prefabricated timber buildings in the EU 2006-2017

350 300

200

Finland Sweden

Germany Estonia 100 Lithuania Poland Belgium Austria Czech Republic Latvia 0 2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Source: Eurostat, Estonian Woodhouse Association

250

Estonian timber buildings around the world

Source: Statistics Estonia, Estonian Woodhouse Association

More than 90% of Estonia s prefabricated timber building production is exported, mainly to the Nordic countries, but also to over 70 countries worldwide including the USA, Canada, Asia, Australia etc.

ICELAND 4,2 MEUR

SWEDEN 69,6 MEUR FINLAND 18,2 MEUR NORWAY 92,1 MEUR ESTONIA ESTONIA

DENMARK 3,9 MEUR BELARUS UNITED KINGDOM 17,9 MEUR

HOLLAND 20,7 MEUR

GERMANY 50,5 MEUR

FRANCE 17,4 MEUR ITALY 3,1 MEUR

AKSO-HAUS TIMBER FRAME MODULAR BUILDINGS

Jana Reitsakas Board Member

Company name Year of foundation Category

Turnover Brands/Partners Membership

Certi cates Awards Markets

Akso-Haus OÜ 2004 Public buildings, kindergartens, schools, nursing homes, residential buildings, private houses, terraced houses, apartment buildings 15,3 MEUR (2017) Parmaco Oy Iceland real estate developers Kadarik & Tüür Architects Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonian Chamber of Commerce and Industry FI-certi cate; ISO 9000; ISO 12000; CE Prefab House of the Year 2013 (1st prize) Estonia, Sweden, Finland, Iceland

How did your enterprise begin? Have your ambitions changed since then? Akso-Haus Jana Reitsakas: Akso-Haus was born in 2004, thanks to a Finnish inventor who devised a method of constructing an entire building on an integrated concrete plate within a factory, enabling the entire building to be li ed and transported multiple times. This unique technology has raised the potential of construction to a new level: production is cheaper and two to three times faster than on-site construction; and because the construction process and material storage are protected from the environment, quality is higher. Today, we have ve factories across Harju County, producing about 25 000 square-metres of buildings annually. At rst we concentrated on smaller buildings such as homes, but today our focus is mainly on largerscale public commissions, such as schools, kindergartens and care centres. We are also working with architects Ott Kadarik and Mihkel Tüür, developing housing solutions ranging from small cottages to apartment blocks. What is the key to your success? First, we have a strong team and we collaborate with partners in engineering, architecture and design, while also maintaining close contact with our clients throughout the process to ensure that we provide exactly what they want. Second, our Akso-Haus technology enables us to build on remote di cult construction sites. For example, we have produced and installed a terraced house for a remote location in Iceland, ve hours drive from the nearest town and hardware store. Our buildings can also be moved to another location years a er they were built, which helps to tackle the challenges of temporary housing. How do you see the future of your enterprise? We hope to double our fabrication and turnover over the next couple of years by raising the production e ciency. We are also paying attention to environmental concerns and minimizing le over materials, reusing them wherever possible. How do you see the timber construction industry in Estonia in general? A stronger focus on the wider European market and worldwide is needed the Estonian market is small.

AKSO-HAUS

www.aksohaus.ee info@akso-haus.ee +372 652 0087 Haapsalu rd 7c, Vasalemma 76101 Harju county

What are the advantages of being based in Estonia? Estonian enterprises are capable of producing quality wooden buildings, supported by a centuries-long tradition of timber construction that began with log houses. What are the challenges for export? To sustain a competitive price while, above all, maintaining our high quality.

> >

Terraced house in Vesturbyggð, Iceland by Akso-Haus, 2018. Architect Signe Hantsom; engineers Otto Pukk and Signe Hantsom. Photo ©Akso-Haus School building in Lahti, Finland by Akso-Haus, 2017. Architect Jari Palonen; engineer Juha Hautala. Photo ©Parmaco Production in Akso-Haus factory. Photo ©Maris Tomba

ARU GRUPP TIMBER FRAME ELEMENT BUILDINGS TIMBER FRAME MODULAR BUILDINGS MACHINED LOG HOUSES

Juhan Viise Chairman

Company name Year of foundation Category Turnover Share of wooden houses Other products/activities Brands/Partners Membership

Certi cates Awards Markets

Aru Grupp AS 1993 Residential houses, garden houses, terraced houses, summer houses 11,9 MEUR (2017) 4,2 MEUR (2017) Windows, doors, stairs Aru Finest Joinery Ltd, ByggUP Ltd, Cabinco Ltd Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonian Chamber of Commerce and Industry ETA; CE; ISO 9001 Strongest in Estonia Creditinfo A-level rating during 5-years, 2017 credit rating AA Ireland, Holland, Japan, Denmark, Norway, Germany, Iceland

www.arugrupp.ee info@arugrupp.ee +372 329 5640 Rakvere rd 12, Hulja, Kadrina 45203, Lääne-Viru county

How did your enterprise begin? Have your ambitions changed since then? Aru Grupp Juhan Viise: Our company was launched in 1993 as a two-man enterprise, operating both a sawmill and farming. Two branches were thus developed and today we have Aru Grupp for the timber industry and Aru Põllumajanduse OÜ for agriculture. Aru Grupp currently employs about 170 people. The whole production consists of four factories: window and door production, staircase production, prefabricated element house production and component production. From the outset we have had the ambition to do things very well and completely sustainably. While our direction may be adjusted every year, those two principles have remained our guide throughout our existence. What is the key to your success? Our strong collective, and our continuing passion for what we do. How do you see the future of your enterprise? We continue to have four factories, and at the current stage of development we are focusing on improving our staircase production. How do you see the timber construction industry in Estonia in general? The share of manual labour must be reduced in industrial processes. Since the markets are limited and competition is intense, only those producers who are very e cient and can o er production with superior quality will survive. What are the advantages of being based in Estonia? Estonians are resilient and innovative I guess those are our major advantages. The majority of our raw material comes from the Estonian forest, although we also import wood, from the USA for example. What are the challenges for export? The classics of economy: price, precision of work and speed of delivery. Our main export markets include Ireland, Holland, Japan, Denmark, Norway, Germany and Iceland. Export sales are organised through local dealers.

Timber frame element house by Aru Grupp. Architect Western Wood Products Ltd., engineer Aru Grupp AS. Photo from private collection The Ockendon School in the UK by Aru Grupp, 2012. Architectural design by JTS Partnership; engineering by KAD. Photo from private collection > Educational facility in Essex, UK by Aru Grupp, 2013. Architectural design by Cabinco; engineering by Aru Grupp / Cabinco. Photo ÂŠJZA

ASTEL TIMBER FRAME MODULAR BUILDINGS MACHINED LOG HOUSES GARDEN HOUSES

Raul Kinks Board Member CEO

Company name Year of foundation Category Turnover Membership

Certi cates Markets

Astel OĂ&#x153; 1992 Residential houses, apartment buildings, terraced houses, public buildings, garden houses 16,1 MEUR (2017) Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonian Chamber of Commerce and Industry ISO 9001; ISO 14001 Norway, Sweden, Central Europe

How did your enterprise begin? Have your ambitions changed since then? Astel Raul Kinks: My father founded the company in 1992 and began by making square log buildings timber garden houses. Today, we export our buildings to business clients in Central Europe, Germany, France and Scandinavia. Four years ago, we began production of timber modular buildings, and we now operate in two areas: modular buildings and engineering; timber log homes and summer houses. What is the key to your success? Luck, intuition and a good team. We have excellent experience in project management and can o er general contracting with construction site management, fully complying with the local rules and regulations as we have done, for example, for Swedish clients. The market has been favourable to us, and demand for our modular buildings in the Nordic countries has increased during the past seven years. How do you see the future of your enterprise? We aim at growth the increasing demand means we need to raise our production capacity, especially for mass-production of garden houses. How do you see the timber construction industry in Estonia in general? We need to address the e ectiveness of production, management of markets and increasing production volume across the sector. The cost of timber has increased considerably, and there is a shortage of skilled labour in Estonia. Our success depends directly on the economic context of the focus markets. For example, the target markets for modular buildings are mostly Sweden and Norway, and to some extent Finland, but in Sweden the nancial conditions for real estate development and consumer loans have changed recently, and such turbulences have an impact on our sales. What are the advantages of being based in Estonia? Quality is the key. There are very speci c quality requirements in Norway and Finland, so we need highly skilled workers capable of meeting those standards. Today, we are still able to o er a better price for custommade solutions and projects with speci c tasks in electrical installation, ventilation, etc.

www.astel.ee info@astel.ee +372 799 8796 Meeksi rd 32, 64506 RĂ¤pina

What are the challenges for export? The larger export projects require substantial selfnancing and so clients want guarantees. 100% of our production is exported. 95% of our square log buildings still go to Central Europe, even though we have tried many other markets such as Iran, Iraq, Saudi Arabia, Australia, New Zealand and Columbia. We would like to further explore and expand our opportunities in the UK.

Apartment building in Stockholm, Sweden by Astel, 2018. Architectural design and engineering by Astel. Photo ©Astel > Social housing complex in Sweden by Astel, 2017. Architectural design and engineering by Astel. Photo ©Astel Assembly of timber frame modular building. Photo ©Astel

BAUINDUSTRIE TEHAS TIMBER FRAME ELEMENT BUILDINGS

Arvi Uiga Director

Company name Year of foundation Category Turnover Other products/activities Membership Markets

Bauindustrie Tehas OÜ 2005 Residential houses, terraced houses, public buildings, summer houses 0,2 MEUR (2017) Construction of foundations, production of foundation (plinth) modules Estonian Woodhouse Association Estonian Chamber of Commerce and Industry Scandinavia, Finland, Estonia

How did your enterprise begin? Have your ambitions changed since then? Bauindustrie Tehas Arvi Uiga: I was a tradesman in the 1990s, but it wasn't very satisfying for me. In construction, things are di erent: you can make something with your own hands and it is there for everyone to see. One autumn, while working on a building site during a storm, I realised that there must be a way to construct buildings without being up to your ears in mud. That's how I got the idea for the prefabrication factory, which I established in 2005. Despite these early ambitions I have learned that what matters is quality and functionality, not size. Our products go to Scandinavia, mainly to Sweden. What is the key to your success? For me, it is a way of life I love doing what I do and seeing the gleam in the eyes of a happy client. I enjoy my entrepreneurial life enormously, and I hope it shows when we communicate with our clients. How do you see the future of your enterprise? We will probably stay small and exible, capable of providing solutions to intricate custom designs. We need to turn our attention to energy e ciency requirements. How do you see the timber construction industry in Estonia in general? On the global market of timber construction, we are competing in a di erent weight category from Polish, Lithuanian and Latvian companies. We could never compete with the quantity and price they o er. I don't think it makes much sense to grow our factories very large in size or capacity; we must focus on quality and customer-satisfaction. What are the advantages of being based in Estonia? Our cultural space is in uenced by German precision and Scandinavian way of thinking. A building is a precision engineering product. We've heard from clients who have bought services or products from Poland, for instance, that they would prefer to come to us in future because they nd it easier to communicate with people from a more familiar business culture.

www.bauindustrie.ee info@bauindustrie.ee +372 5802 7687 Tehnopargi, Kabala village, Türi, Järva county 72001

What are the challenges for export? We should try out markets where timber buildings have not been so popular whether it's due to the lack of wood as a traditional building material or some other reason. It would be interesting to familiarise those markets with our products. Scandinavia and Europe are economically more advanced than us, yet on other markets we could be more equal partners. The Middle East would be fascinating, with a niche for timber construction.

Timber frame element house in Risør, Norway by Bauindustrie Tehas, 2015. Architect Jan Kvalberin, engineer Küllo Kabral. Photo ©Küllo Kabral > Timber frame element house in Tartu, Estonia by Bauindustrie Tehas, 2018. Architect Kristel Jürma; engineer Küllo Kabral. Photo ©Kuldar Jürma House in Harju county, Estonia by Bauindustrie Tehas, 2015. Architect Jüri Renter; engineer Küllo Kabral. Photo ©Küllo Kabral

ELH PALKEHITUS HANDCRAFTED LOG HOUSES

How did your enterprise begin? Have your ambitions changed since then? ELH Palkehitus Janek Sakkis: We began by subcontracting to others. We have since grown steadily, nding markets in Denmark and Norway and cooperating with partners in Austria where we sell about 70% of our production. What is the key to your success? Consistency, our skilled and professional team, our use of high-quality raw materials, and our commitment.

Janek Sakkis Board Member CEO

Company name Year of foundation Category Turnover Other products/activities

Brands/Partners

Membership Markets

ELH Palkehituse OÜ 2005 Residential houses, summer houses, saunas 0,2 MEUR (2017) Other log constructions (playgrounds, garden furniture, design details), drawings for log buildings Finnland-Block GmbH (Austria), Rakennusliike Timo Rättö Oy (Finland), Totland Blikk AS (Norway), Rand & Tuulberg AS (Estonia), Toosikannu OÜ (Estonia) Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonia, Finland, Denmark, Norway, Germany, Austria

www.palkehitised.ee palkehitised@palkehitised.ee +372 518 6818 Valgjärve village, Põlva county 63419

How do you see the future of your enterprise? We are taking great care to grow steadily to ensure that we continue to be successful ten years from now. I emphasise care, to sustain our pro le o ering handcra ed log houses, which are niche products. We are oriented towards private clients and end-users, especially in Austria, although we also produce for bigger business clients including in Estonia. How do you see the timber construction industry in Estonia in general? The trend is to move towards the production of timber element and modular buildings, which is perhaps an easier and more convenient way to operate within our industry. We prefer instead to stay in our niche, although the new construction regulations, such as the energy e ciency requirements, are making it increasingly di cult to meet the building standards across the European market. Handcra ed log houses are certainly not going to disappear, but we need to adjust to this situation. What are the advantages of being based in Estonia? Although labour costs may be lower for companies in Latvia, Lithuania and Poland, the construction of handcra ed log houses requires very speci c skills that are not easy to nd. Our team has 15 years of experience in building log houses and working out di erent speci c solutions in log construction. Our wood comes from the Estonian state forests, and this proximity to the raw material is a major asset. We haved tried importing wood, but nd that the local Estonian timber has both the consistency and quality we need. What are the challenges for export? It would be interesting to further explore the markets in Denmark, UK and Germany. An enterprise as small as ours needs very good local contacts and partners if it is to expand its markets.

House in Norway by ELH Palkehituse, 2015. Architects Janek Sakkis and Arlid Bjorge; engineer Janek Sakkis. Photo ©Maris Tomba Cottage in Finland by ELH Palkehituse, 2013. Architect Kari Paasonen; engineer Janek Sakkis. Photo ©ELH Palkehituse > Public smoke-sauna in Finland by ELH Palkehituse, 2013. Architect Jarmo Fäldt; engineers Matti Rättö and Janek Sakkis. Photo ©Maris Tomba Log construction joint detailing by ELH Palkehituse. Photo ©ELH Palkehituse

ESTHUS TIMBER FRAME ELEMENT BUILDINGS TIMBER FRAME MODULAR BUILDINGS SOLID TIMBER CONSTRUCTION (MHM)

Janek Paabut Board Member

Company name Year of foundation Category Turnover Other products/activities Brands/Partners Membership Certi cates Awards

Markets

EstHus OÜ 2009 Residential houses, terraced houses, apartment buildings, public buildings 3,2 MEUR (2017) Solid timber construction (MHM) production EstHus, MHM® Estonian Woodhouse Association Estonian Wooden Houses Cluster ETA; ISO 9001; ISO 14001; Successful Estonian Company 2016 (credit rating AA) Prefab House of the Year 2017 (1st prize) Prefab House of the Year 2016 (di erent special prizes) Gazelle a rapidly growing company 2017 Norway, Sweden, Finland

www.esthus.eu info@esthus.eu +372 520 5505 Turu 67, 50106 Tartu

How did your enterprise begin? Have your ambitions changed since then? EstHus Janek Paabut: We started in 2009 as 'Puitpaneel', and later renamed the company 'EstHus'. In the beginning we focused on sales, design and assembly of timber element buildings, buying all the necessary components from other producers. Our dreams and ambitions were modest at rst: a turnover of one million Euros seemed like a fantasy. In 2011 we invested in our own factory for production of our own element and modular houses, so there has been a signi cant change in our pro le we have developed from a project management company into a manufacturer. In addition to timber element buildings, we also produce spatial modules and MHM® (Massiv-HolzMauer®), unique product on the Scandinavian market, which consists of dried so wood joined together by uted aluminium nails to form a solid wall with unique properties for thermal insulation while transmitting air and regulating moisture. What is the key to your success? The foundation of our success has been our owners' constant hard work and commitment to the enterprise, and our team. We have also enjoyed our fair share of good fortune. How do you see the future of your enterprise? We aspire to increasing our pro ts and stability. Our slogan is 'Resource-Smart Constructions'. The optimal use of resources is absolutely necessary for a sustainable future our resources include time, capital, material and nature as a whole. We want to be a good employer and valued partner for our clients and suppliers. We continue to take care of all aspects for our clients: engineering, production, shipment and assembly of prefabricated parts. How do you see the timber construction industry in Estonia in general? The greatest challenge is the lack of quali ed workforce and the constant pressure on wages. This situation is exacerbated by the rising cost of materials and transport. To survive, it is crucial to increase productivity and invest in automated manufacturing. What are the advantages of being based in Estonia? Operational e ciency and exibility, as well as the sector competence that we have built up over the years. Our former assets, such as cheap labour and materials, are disappearing day-by-day, but the perseverance and stubbornness of Estonians works to our advantage. What are the challenges for export? The competition is extremely tight in our main markets in Scandinavia. All markets have their own di erent rules and regulations, and if you don't know them you will encounter signi cant problems.

Terraced houses in Sweden by Esthus, 2016. Architectural design by Sandellsandberg arkitekter AB; engineer Martin Groznõi. Photo ©Titania Bygg & VVS AB

> Timber frame element house in Hokksund, Norway by EstHus, 2016. Architectural design by T.B. Tegenservice; engineer Marko Mitt. Photo ©EstHus Apartment building in Norway by EstHus, 2014. Architectural design by Alliance Arkitekter; engineer Martin Groznõi. Photo ©Maris Tomba

ESTNOR TIMBER FRAME ELEMENT BUILDINGS TIMBER FRAME MODULAR BUILDINGS HANDCRAFTED LOG HOUSES

Renee Mikomägi Board Member CEO

Company name Year of foundation Category Turnover Membership Certi cates Awards

Markets

EstNor OÜ 2000 Public buildings, apartment buildings, terraced houses, holiday houses 7,5 MEUR (2017) Estonian Woodhouse Association Estonian Wooden Houses Cluster ISO 9001; Central Approval in Norway; Successful Estonian Company 2018 (credit rating AA) Prefab House of the Year 2018 (Best public building award) Prefab House of the Year 2017 (Del readers' favourite award) Prefab House of the Year 2015 (2nd prize) Gazelle a rapidly growing company 2015 Norway, Sweden, Estonia, Finland

How did your enterprise begin? Have your ambitions changed since then? EstNor Renee Mikomägi: I began working for a log house producer in Norway straight a er high school. I made good contacts and was able to kick-start my own manufacturing with my rst commissions very early on I built my own team in 2000. Since then it's been a steady growth, with the exception of 2009 during the economic crisis. So far we have built over 600 houses in Scandinavia. Our yearly turnover is 7.5 million euros, and last year we built new homes for 75 families. Our 3 200 square metre factory is located in Kiili, just outside Tallinn. Today, we have around 80 full-time employees working on EstNor houses. What is the key to your success? Hard work. I know rst-hand the technological side of the production cycle. We get our clients from personal recommendations rather than marketing. How do you see the future of your enterprise? We started by focusing on private clients end-users, but have begun to build more for business clients: real estate developers and construction companies. Our main markets are in Scandinavia in Norway and Sweden. The buildings are getting bigger and commissions are increasingly complex. For instance, we are about to start building a 12-storey, 28 000 square-metre apartment building in Oslo city centre. We will produce all the exterior wall elements, including more than 750 windows, and transport them all to Oslo in 40 trucks. We have built very little in Estonia, but we are currently constructing four apartment buildings, with 32 apartments, in Kiili parish in Harju county. We are planning to expand our production capacity by another 50%, which of course needs a lot of care. How do you see the timber construction industry in Estonia in general? We collaborate quite a lot with Estonian architects, yet we see a great demand for capable engineers the government should turn its attention to educating future engineers that are capable of supporting the timber construction industry. A lack of knowledgeable engineers could severely hinder the development of the sector. What are the advantages of being based in Estonia? We build from Estonian wood, the local work-ethic is good, and transport and logistics function well here.

www.estnor.ee info@estnor.ee +372 651 6174 Kurna rd 33, Kiili 75401 Harju county

What are the challenges for export? Estonian producers are highly valued in Scandinavia and are the biggest suppliers there. The quality of our products is up to the level of those in Scandinavia, but we have the advantage of being faster and more exible.

Apartment building with ve apartments in Tønsberg, Norway by EstNor, 2014. Architects Torleif Vårdal and Ülle Maiste, engineer Kristjan Tepner. Photo ©EstNor > Timber-frame element residential building in Norway by EstNor, 2015. Architect Mats Põllumaa, engineers Alar Liin and Kristjan Tepner. Photo ©Maris Tomba Warehouse and o ce building in Göteborg, Sweden by EstNor, 2017. Architect Annika Hedeblom, engineer Kristjan Tepner. Photo ©Sven-Olof Englund / XL-Studios

ESTONIAN LOG CABINS MACHINED LOG HOUSES

How did your enterprise begin? Have your ambitions changed since then? Estonian Log Cabins Mikk Volkov: I had been living in the UK when in 2008 I thought of trying to sell wooden buildings there. At rst we acted as intermediaries between Estonian producers and clients in the UK, erecting the buildings on site. We then decided to start our own manufacturing line for round log houses. 80-90% of our production is exported: half goes to the UK, the rest goes to Scandinavia, Belgium, Denmark, Holland, etc. What is the key to your success? Flexibility and customer-orientation. We are able to follow the client's needs because we are small and can be quite exible. Our quality standards are high and we also o er our customers a er-sales support.

Mikk Volkov Board Member Sales Director

Company name Year of foundation Category Turnover Membership Markets

Estonian Log Cabins OĂ&#x153; 2008 Residential buildings, summer houses, mobile homes, saunas, garden products 1,15 MEUR (2017) Estonian Woodhouse Association Estonian Chamber of Commerce and Industry UK, Denmark, Norway, Belgium

How do you see the future of your enterprise? Today, we produce round and square log houses, yet as the energy e ciency requirements have become demanding, we are looking to explore also other directions such as timber frame construction. This requires investment in a larger production facility and machine park. How do you see the timber construction industry in Estonia in general? Our sector is developing in line with the rise of ecological thinking around the world. People prefer buildings that have been made from natural materials. What are the advantages of being based in Estonia? Estonia has a lot of forest and a great geographic location for logistics. Estonians are hardworking people and its not too hard to nd skilled workers in the log cabin industry. What are the challenges for export? Transport is becoming more and more expensive. Because a large share of our market is in the UK, it's important to keep an eye on the situation with Brexit. There are other markets that could also be interesting for us such as India, China and Japan. We've sold houses to Australia, but not yet to Asia.

www.estonianlogcabins.com info@estonianlogcabins.com +372 602 7906 Betooni 9, 51014 Tartu

'Project Priit' in Viljandi county, Estonia by Estonian Log Cabins, 2016. Architect Priit Paenurm. Photo ©Mikk Volkov > Project Hugh' in Skåne, Sweden by Estonian Log Cabins, 2015. Architect Priit Paenurm. Photo ©Hugh Matthews

FINNLOG

How did your enterprise begin? Have your ambitions changed since then? Finnlog Alar Anton: We started out in 2003; I had previous experience in the eld. Our markets are mostly in Finland, Russia and Germany, yet also in India where we see the greatest potential despite the cultural di erences: the basic human need for shelter is universal.

MACHINED LOG HOUSES

Alar Anton Board Member CEO

Company name Year of foundation Category Turnover Membership

Certifcates Awards

Markets

Finnlog Group OĂ&#x153; 2003 Residential buildings, summer houses 3,5 MEUR (2017) Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonian Chamber of Commerce and Industry German-Baltic Chamber of Commerce CE; Successful Estonian Company 2017 (credit raiting AA) Prefab House of the Year 2018 (Best machined log house award) Prefab House of the Year 2017 (Best machined log house award) Prefab House of the Year 2016 (di erent special prizes) Estonia, Germany, Latvia, Russia, Finland, Norway, India

What is the key to your success? The owner needs to stay deeply involved in running the company. Since it is not possible to personally lead development in all di erent markets, it is a question of nding competent and motivated people to work as a team. We are unique in Estonia in a sense that we do not produce logs or elements, but buy them and assemble the building on site. It means we are not investing in factories but use the products of other manufacturers. We import logs for external walls from Finland, the rest of the elements such as frames, beams, doors-windows, etc. come mainly from Estonia. For larger projects elsewhere we o en also include materials produced locally. As our focus is on assembly, our added value is in marketing, the construction process, engaging novel technological ideas, and in advancing design know-how. We operate in a way similar to the car industry. How do you see the future of your enterprise? We hope to grow further, to open our own sales networks in foreign markets. We have established separate companies at each target market, so the client is buying from a local seller, which is good for building trust and a better relationship. How do you see the timber construction industry in Estonia in general? Wood has largely the same price whether it is sourced in Poland or Estonia. The nal price of a building depends largely on labour costs, which are increasing at a faster rate in Estonia than, for example, in Poland. To compensate for the higher cost, we should o er better products and buildings. The price of wood is also likely to rise in the near future, so we need to re-think how we compete with construction industries that use concrete, steel, etc. What are the advantages of being based in Estonia? Although we have di erent operators in di erent countries, they all come together under the same umbrella in Estonia.

www. nnlog.eu info@ nnlog.ee +372 622 5845 Keemia 4, 10616 Tallinn

What are the challenges for export? The protectionism of foreign markets: the Finns, Germans, Swedes, etc. all prefer a local seller, so the problem is how to sell your core concept as a local seller in the target market.

Finnlog house in West Estonia, 2016. Architect Liis Sagadi, engineer Aivar Praakel. Awarded as the Best machine log house at the "Prefab House of the Year" contest in 2018. Photo ÂŠMarina Suvoro

> Finnlog house in Norway, 2017. Architect Liis Sagadi, engineer Aivar Praakel. Photo ÂŠSven-Olof Englund / XL-Studios

GREENCUBE TIMBER FRAME ELEMENT BUILDINGS TIMBER FRAME MODULAR BUILDINGS GARDEN HOUSES

How did your enterprise begin? Have your ambitions changed since then? Greencube Henri Bekmann: Greencube was born out my own practical need. I wanted a small wooden house of high quality where I could live all year round. Nobody was o ering such a product at the time. It took some time to nd a good solution and I saw that there was large gap in the market, so we focused on smaller scale timber buildings, fostering entrepreneurship in rural areas. What is the key to your success? Keeping our focus on small-scale houses of high quality.

Henri Bekmann Director of Sales and Development

Company name Year of foundation Category Turnover Share of wooden houses Other activities Brands Membership Awards

Markets

Greencube OĂ&#x153; 2014 Residential buildings, summer houses, garden houses, saunas 0,37 MEUR (2017) 0,35 MEUR General construction works Greencube Estonian Woodhouse Association Prefab House of the Year 2016 (Best garden house award) Business Idea of the Year 2017 (in top 30) Estonia, Sweden

www.greencube.ee info@greencube.ee +372 5193 4599 Valuste rd 7, 90303 Lihula

How do you see the future of your enterprise? I am sure that the sector is growing in extent, but our aim is to grow in quality especially for export. Of course, our future is tied to market demand. How do you see the timber construction industry in Estonia in general? The productivity per construction worker needs to increase. Labour cost in the construction sector is very high while productivity is fairly low, so the nal price forces us out of competition when compared with our southern neighbours. To stay competitive we need to invest in automation. However, even if more can be done by machines, we will still need competent and skilful workers. It is also a question of teamwork: it takes a long time and the right kind of opportunities to learn to collaborate with architects, engineers and construction companies. We need to build better bridges between the relevant disciplines by connecting the right people for the right jobs. What are the advantages of being based in Estonia? Our main market is in Estonia, although we also sell in Finland, Sweden and Norway. So far we have enough work here the local market keeps our production line busy. What are the challenges for export? We have noticed that there are many potential interested buyers for our products, so one day we may be willing to export more. It is one thing to make a very good product, but it is quite another thing to make very good sales. There is no one single recipe for export success. It is always relative and it involves a combination of many factors, including marketing, the availability and quality of raw material, the speci city of the production line, the capability of work force, the reliability of the developer, the competence of the construction company, and so on.

Sauna 'Kuumus' in West Estonia by Greencube, 2017. Architectural design and engineering by Greencube. Photo ©Greencube

> Timber frame modular building in Estonia by Greencube,

2014. Architect Ove Rae; engineering by Artest Project. Photo ©Greencube Cottage in Saaremaa, Estonia by Greencube, 2017. Architectural design and engineering by Greencube. Photo ©Greencube

GREENTEC

How did your enterprise begin? Have your ambitions changed since then? Greentec Ahto Joost: I am trained as an architect, Greentec Houses was created in 2007 when I began collaborating with a Finnish partner we decided to start a factory for element and modular wooden buildings. We prefer business clients whose commissions have some meaning beyond nancial gain. What is the key to your success? O ering e ective, environmentally, economically and technologically well-considered solutions. So far, we've mainly been subcontracting, however we aim to develop our own products.

Ahto Joost Board Member CEO

Company name Year of foundation Category Turnover Membership

Certi cates Markets

Greentec Houses OĂ&#x153; 2007 Residential buildings, apartment buildings, terraced houses, summer houses, public buildings 1,6 MEUR (2017) Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonian Chamber of Commerce and Industry ISO 9001:2015; ISO 14001:2015; Sentral Godkjenning Norway, Sweden

www.greentec.ee info@greentec.ee +372 600 3910 Karla village, Kose 75106 Harju county

How do you see the future of your enterprise? The upcoming generation of clients has their own agenda. They may not wish to own property, but rather to gain experiences, to enjoy the moment and to have the exibility to move on with their lives as they wish. We need a di erent approach to build for this emerging client base, turning attention to the kinds of design aspects, emotional qualities and changes in lifestyle that are important for them. How do you see the timber construction industry in Estonia in general? We have a strong knowhow in the eld, as well as great potential on the Scandinavian and Russian markets. We are reliant on the availability of wood and on the skill of our labour force. Speaking of the new energy e ciency regulations they will bene t us all eventually. What are the advantages of being based in Estonia? We haven't thought of moving our production to another country. We've been working with local architects and see further potential in collaboration with the new generation of Estonian architects and engineers who are able to take into account the pragmatics of prefabrication. What are the challenges for export? These days our market is largely outside Estonia so uctuations in Scandinavian currencies have an immediate e ect on product pricing. In Scandinavia, the housing market is growing, but we don't know how long this growth would continue. We're searching for new market opportunities for wooden element houses. We have found it helpful to consult with the Estonian Enterprise 'ambassadors', which have resulted in contacts that have led to commissions. It would be good to construct further reference projects in Estonia in order to make our portfolio more attractive and help us promote ourselves internationally.

Apartment building 'Mildredo & Naemi' in Åland, Finland by Greentec Houses 2014. Architect Robert Boman; engineer Robert Boman. Photo ©Ahto Joost Summer cottage 'Havsvidden' in Åland, Finland by Greentec Houses, 2008. Architect Thomas Sandell, engineering by Greentec Houses. Photo ©Ahto Joost > Residential building 'Villa Marina' in Åland, Finland by Greentec Houses, 2010. Architect Michael Donalds; engineering by Greentec Houses. Photo ©Ahto Joost Apartment building in Norway by Greentec Houses, 2014. Architect Frank Kalfoss; engineer Johnny Kjelsberg. Photo ©Maris Tomba

HARMET TIMBER FRAME MODULAR BUILDINGS

Toomas Kalev Chairman

Company name Year of foundation Category Turnover Brands/Partners Membership

Certi cates Awards

Markets

Harmet OÜ 1997 Apartment buildings, public buildings, temporary site-huts 77 MEUR (2017) Cramo, Boklok Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonian Chamber of Commerce and Industry Estonian Employers' Confederation Svenska Skidanläggningars Organisation ETA; CE; ISO 9001; ISO 14001; ISO 18001 Wood Industry TOP 1st ranking 2017 (Estonian daily 'Äripäev'); Building Materials Manufacturer's TOP 3rd ranking 2017 (Estonian daily 'Äripäev'); The Financial Times, FT 1000, Candidate for Europe's Fastest Growing Companies 2013-2016 Sweden, Norway, Finland

How did your enterprise begin? Have your ambitions changed since then? Harmet Toomas Kalev: We started in 1992. Harmet is an abbreviation of Harju Metall, and we began with making various metal products. In 1997, we began manufacturing timber frame elements our main eld of activity today, while Harmet Metall remains our branch for metal production. We also have the Harmet Constructions and Harmet Modular Building branches for element installation and other construction work. In 2017, yet another branch Harmet Bathroom started to make bathroom modules. We could not have predicted that by 2017 we would be the biggest producer of timber elements in Estonia. Today we produce modular houses, pre-fabricated modules and various modular on-site facilities; we have more than 650 employees and we operate in three factories; our total production area is about 48,000 m² and our annual production capacity 200,000 m². What is the key to your success? People. A good and motivated team. There's no substantial bureaucracy at Harmet. The circle of owners is small, decisions are born fast. We can re-orientate ourselves quickly according to the market situation and other business factors. How do you see the future of your enterprise? The combination of a loyal client base and steady growth enables us to look for new opportunities and clients at a moderate pace. All the projects we launch must become fully and e ectively functional before we decide if or how to expand the activities or take on new projects. It's important to create a very strong group of engineers to design various buildings and facilities in line with the standards and traditions of the Scandinavian and European market. How do you see the timber construction industry in Estonia in general? Estonia is no longer a country with a cheap labour force. To survive it is vital that production e ectiveness and automation are addressed seriously. There are many success stories in our sector, and this has in turn attracted many fortune seekers who spoil the market and stain the reputation of Estonia's timber constructors. What are the advantages of being based in Estonia? We still enjoy lower labour costs than in our main markets.

www.harmet.ee info@harmet.ee +372 666 0420 Puusepa rd 4, Kumna village, Harku parish, Harju county 76614

What are the challenges for export? Harmet's primary market is Scandinavia, where more than 90% of our production is sold. We must have a good knowledge of the rules and regulations of our export markets. We also need to consider transport, which is costly and can set limitations on the products we export.

Apartment buildings in Bodø, Norway by Harmet, 2010. Architectural design by Romerike Arkitekter, engineering by Toomas Kuus. Photo ©Harmet > Apartment buildings in Mo i Rana, Norway by Harmet, 2014. Architectural design by Romerike Arkitekter, engineering by Toomas Kuus. Photo ©Maris Tomba

HOBBITON

How did your enterprise begin? Have your ambitions changed since then? Hobbiton Ragner Lõbu: I taught log-building at Räpina training centre. Andrus Prangli and Andres Uus took my course and we built the rst four tiny houses together. That was the start of Hobbiton, in the beginning the three of us built all of the houses ourselves. The leaders of Hobbiton all know the construction process.

HANDCRAFTED LOG HOUSES

Ragner Lõbu Board Member

Company name Year of foundation Category Turnover Membership

Awards

Markets

Hobbiton OÜ 1997 Residential buildings, saunas, summer houses, holiday homes 2,9 MEUR (2017) Estonian Woodhouse Association Estonian Wooden Houses Cluster International Log Builders Association Prefab House of the Year 2016 2018 (Best handcra ed log house award) Employee-friendly enterprise of Põlva county 2005 Norway, Estonia, Finland, Sweden

What is the key to your success? We have never kept a singular vision of 'success' in sight but have kept ourselves busy doing something we love. How have we survived for 21 years? The simple answer is versatility. We are a cra log-house producer, but we have applied those skills to other things, such as restoring old buildings, constructing timber frame buildings, etc. Today, our commissions are hybrid, combining various structural systems, materials and construction methods. We are able to o er technicallycomplex solutions that other companies might set aside. We have long-term experience skill comes from experience. How do you see the future of your enterprise? A cra -based company can never grow really big. We already have more than y employees and it's unlikely that we will grow in size. The skills required for cra log-building accumulate over a long time, so we can't increase our workforce overnight. How do you see the timber construction industry in Estonia in general? For each building project, we should start to consider all of the costs associated with the building over its entire lifetime, taking into account its full carbon footprint. Scandinavian countries, as well as Canada, are more advanced in their consideration of the building cycle as a whole. What are the advantages of being based in Estonia? Education is the key. Hobbiton's leaders help to run a training centre in Mooste, developing a new generation of cra smen for traditional building and log-house renovation. We use wood from the forests around Räpina and have a contract with the Estonian State Forest Management Centre.

www.hobbiton.ee hobbiton@hobbiton.ee +372 505 0516 Võru rd 14, Räpina 64505 Põlva county

What are the challenges for export? Our export markets have included Finland, Norway, Sweden and France it's important to spread risks and work in several markets at the same time. Estonian companies export a lot to Scandinavia, yet our success is not really noticed by our government. We also need better opportunities to build from wood in Estonia, for instance, to help with state housing programmes.

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Handcra ed log house in Haapsalu, Estonia by Hobbiton, 2016. Architect Kristjan Prii; engineer Marko Teder. Photo ©Tõnu Tunnel Handcra ed log house in Estonia by Hobbiton, 2014. Architect Taisi Lehtmets; engineer Illimar Kalk. Photo ©Hobbiton Handcra ed log building smoke sauna in Harju county, Estonia by Hobbiton Home, 2016. Architect Timm Annus; engineering by Hobbiton. Photo ©Sven-Olof Englund / XL-Studios

KMT PREFAB TIMBER FRAME ELEMENT BUILDINGS

Martin Talts Board Member

Company name Year of foundation Category Turnover Other products/activities Membership

Certi cates Markets

KMT Prefab OĂ&#x153; 2002 Timber frame facade elements for apartment buildings, terraced houses, public buildings 4,1 MEUR (2017) Steel frame element houses Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonian Chamber of Commerce and Industry ISO 9001; ISO 14001 Norway, Sweden, Finland, the Baltic States

How did your enterprise begin? Have your ambitions changed since then? KMT Prefab Martin Talts: I was active in a company that produced glass facades when a good colleague decided to leave and start a prefabricated house factory. I convinced him that we should to start it together. We gave the company a name similar to my previous one and were able to use the existing client base. One of our rst projects was Technopolis in Vantaa, Finland, which lead to a long term cooperation with the Finnish steel group Ruukki. We manufactured wall and roof panels for their large-scale projects, including airport extensions and several Olympic facilities in the London area. Our focus is still on bigger construction contractors in export markets, and the majority of our sales go to Sweden, Norway, Denmark and Finland. Our ambition is to o er sophisticated solutions also in the UK and beyond. What is the key to your success? The ability to undertake complex large-scale projects. Also, our exibility, speed, and guarantee of compliance with agreed deadlines. How do you see the future of your enterprise? Continuous product and production process development, nding new ways to add value for the client. By improving the product, we have developed it into something more complex and one of our new challenges is to simplify and standardize the product while still meeting energy e ciency and performance requirements. We see a lot of room for further growth in our home markets in Scandinavia. How do you see the timber construction industry in Estonia in general? Urbanization, rising life expectancy and other factors increase the demand for new housing and also for schools, hospitals, hotels and o ce buildings. Additionally, the shortage of skilled labour and rising labour costs in target markets drives demand for prefabricated products. The challenge is to raise the competence of Nordic architects and engineers in prefab technology. What are the advantages of being based in Estonia? The good level of engineering skills, favourable legislative and taxation environment, and the availability of raw materials.

www.kmt.ee kmt@kmt.ee +372 489 0923 Nooruse 1a, Tabasalu 76901 Harju county

What are the challenges for export? The labour costs of our neighbours in Latvia, Lithuania and Poland are a third less than in Estonia. The exchange rate for Swedish and Norwegian currencies has not been favourable for a long time input prices are in euros and have made our products more than 10% more expensive. It is always possible to improve sales skills and to understand the customer needs better to o er solutions that can satisfy both parties equally.

Award-winning housing project Krøyers Plads in Copenhagen harbour, completed by Vilhelm Lauritzen Architects and COBE, 2014. Photo ©Dreamstime > Skovbakken school building in Denmark, 2017. Architectural design by Cebra; engineering by KMT Prefab. Photo ©MT Højgaard Niinesaare terraced houses in Estonia, by KMT Prefab, 2015. Architect Pille Nagel; engineering by KMT Prefab. Photo ©Sven Soome

MAJAND HANDCRAFTED LOG HOUSES

Kristjan Kruusmägi CEO

Company name Year of foundation Category Turnover Membership Markets

Majand OÜ 2003 Residential houses, summer cottages 0,64 MEUR (2017) Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonia, Finland, Sweden, Norway, France

How did your enterprise begin? Have your ambitions changed since then? Majand Kristjan Kruusmägi: We started in 2003, subcontracting to other companies. Today we sell to end-users and o er our clients a full construction service down to assembly on-site. Some time ago our main market was in the mountainous areas in France, but today we mostly export to Sweden. We have produced residential units, skiing centres, restaurants, saunas and other log structures. What is the key to your success? We have a strong relationship with clients, so every completed building brings us new customers. The quality is in details: wind-locks, tenons, dovetails and other joints, handcra ed posts and staircases, tailor-made terrace or balcony railings, doors and windows, etc. Our French clients are particularly concerned with the details, and so are we. Our buildings sell themselves we are too small to invest much in marketing on an international scale. We take full responsibility for the quality of our production. How do you see the future of your enterprise? Staying on our track and focusing on cra manship. We aim to continue o ering our customers the opportunity to purchase all of the services they need in one place, from design to construction and completion of the interior nishing. How do you see the timber construction industry in Estonia in general? Handcra ed log houses are niche products. This niche is never going to become too big, but we can see it expanding as clients increasingly value environmental factors. There are not very many architects and engineers capable of designing log houses. What are the advantages of being based in Estonia? The people who cra our log houses have worked with us for a long time. Just like the people of other Nordic countries, Estonians have been building log houses with dovetail corners and tenon corner joints for thousands of years. We are based in Valga, a remote area where it is important to create jobs and o er work to local people.

www.majand.ee kristjan@majand.ee +372 504 0301 Valguse 5A, 11211 Tallinn

What are the challenges for export? It is always tricky to create ways for people to nd us, especially since we are not involved in mass production. Canada could be an interesting market to explore. Selling European houses there could create an added value, in much the same way as Canadians selling their houses here in Europe. Products from afar are exotic and provide a unique interest for a potential buyer. In some ways, our clients are our representatives, spreading the word about our products and services.

Handcra ed log house in Vemdalen, Sweden by Majand, 2016. Architectural design by J Frommer and Majand; engineering by AT Home and Majand. Photo ©Kristjan Kruusmägi > Handcra ed log house in Bydalen, Sweden by Majand, 2016. Architectural design by J Svensson and Majand; engineer Majand. Photo ©J Svensson Handcra ed log house in France by Majand, 2011. Architectural design and engineering by Majand. Photo ©Kristjan Kruusmägi

MATEK TIMBER FRAME ELEMENT BUILDINGS TIMBER FRAME MODULAR BUILDINGS

How did your enterprise begin? Have your ambitions changed since then? Matek Sven Mats: Matek began 30 years ago in PĂ¤rnu, producing standardised panels with polyurethanic lling. A side product bottled Makro ex polymer foam became a hit in the construction industry, giving birth to our largest foam factory today. Prefabrication of wood elements remained in the shadow until 2003, when I decided to pursue my interest in timber construction. Our technical competence was already good, but I emphasised the business side. We took on more intricate commissions, such as apartment buildings and real-estate development projects, manufacturing their wooden elements. What is the key to your success? Getting out of our comfort zone. We focus on novel solutions for complex buildings for business clients.

Sven Mats Board Member Managing Director

Company name Year of foundation Category Turnover Membership

Certi cates Awards

Markets

Matek AS 1988 Apartment buildings, terraced houses, public buildings, kindergartens 8,7 MEUR (2017) Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonian Chamber of Commerce and Industry ETA; SINTEF; ISO 9001 Prefab House of the Year 2012 (1st prize) Prefab House of the Year 2016 (Best private house award) Prefab House of the Year 2018 (Most energy e cient building award) Norway, Sweden, Iceland

www.matek.ee matek@matek.ee +372 622 0077 PĂ¤rnu rd 158, 11317 Tallinn

How do you see the future of your enterprise? We want to develop our own product line in collaboration with architects. Prefabrication builds on competence in engineering, production and assembly. We see great potential for innovation in the elds of renovation, using wooden elements and especially modules in new housing projects. How do you see the timber construction industry in Estonia in general? I believe the local construction market will grow signi cantly in the coming years, not only in terms of private dwellings but also urban development in general, combining wood and concrete. I estimate that in 2023 about a third of the production volume will remain in Estonia. The sector is moving towards o -site production, timber as a material has magni cent advantages for prefabricating various modules from bathrooms to facade elements. What are the advantages of being based in Estonia? Estonians have a wide knowledge and experience in building o -site with wood. Yet from 2000 to 2017 the mean wage in Estonia has increased fourfold. This leads us to invest increasingly in product development and technology. The drivers for this are basically the same as in the car industry: standardisation and volume production. What are the challenges for export? It is important to have a stable economic context that supports entrepreneurship and to promote our sector success stories internationally. 90% of our turnover comes from abroad and our markets are in Norway, Sweden and Iceland we've sold more than 400 houses in Iceland. We are also looking for opportunities in Austria, Germany, Italy. Why not also in Asia, where there is a lot of con dence in wood as a building material. It really helps to have the right local partner.

Apartment building in Norway by Matek, 2014-2016. Architect Christian Røren; engineer Tanel Nurk. Photo ©John Rune Enstad Lovas > Tammiste kindergarten in Sauga, Estonia by Matek, 2010. Architect and engineer Jüri Kliimask. Photo ©Matek Tallinn University of Technology student housing renovation into a super-energy-e cient building. Prefabricated exterior wall panels by Matek. Architect Magnar Meinart; engineers Dina Lavrenchuk and Tanel Nurk. Photo ©Sven-Olof Englund / XL-Studios

MOUNTAIN LOGHOME

How did your enterprise begin? Have your ambitions changed since then? Mountain Loghome Priit Leisalu: Mountain Loghome was created in 1998 with a speci c focus on export. Today, we sell a lot to Japan where the requirements for quality are very high. We've also been active on the Norwegian market for een years and have built approximately 450 housing units there, in addition to a ski centre and much more.

MACHINED LOG HOUSES TIMBER FRAME ELEMENT BUILDINGS

What is the key to your success? Our ability and willingness to nd solutions in complex situations; our exibility, in meeting speci c expectations, and our constant striving for quality.

Priit Leisalu Board Member Sales Manager

Company name Year of foundation Category Turnover Other products Membership

Certi cates Markets

Mountain Loghome OĂ&#x153; 1998 Residential houses, summer houses, holiday homes 1,1 MEUR (2017) Post&Beam houses Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonian Chamber of Commerce and Industry Successful Estonian Company 2013 (credit rating AAA) Estonia, Norway, Germany, Austria, France, Japan

How do you see the future of your enterprise? We need to nd clever ways to meet the regulations for airtightness and energy e ciency while exposing the beauty of log walls where possible. A contemporary log house can be surprisingly airtight, as tests have shown. We also produce some post-and-beam solutions, so another direction to explore is timber frame construction. We prefer business clients over individual customers. How do you see the timber construction industry in Estonia in general? Experimental collaboration with local architects and engineers could lead to eye-opening results and reveal innovation opportunities that might otherwise remain concealed. For instance, collaboration with PART architects in 2017 has led to several interesting wood installations in central locations in Tallinn, conveying novel design ideas for timber construction and enabling us to use our machines to produce the structures for Tallinn Architecture Biennale and Tallinn Music Week. Those projects have helped to demonstrate the contemporary fabrication capabilities of our production line. What are the advantages of being based in Estonia? We have a long track record in making log houses. We have an advanced and powerful CNC production line with an array of possibilities, and a lot of experience in the eld. Our workers are very competent they've been with us for a long time and they know how to work with our manufacturing machines.

www.mountainloghome.ee info@mountainloghome.ee +372 604 1584 Metsatuka 2a, Saku, 75501 Harju county

What are the challenges for export? Marketing needs special attention, as the Estonian brand is not so well-known in the world. We have exported to European countries like Norway, Germany, Austria, Switzerland and France, but also to the Kingdom of Lesotho in South Africa, Japan and South Korea. Wood is a popular building material in Asia, and it is great to cooperate with companies who love wood as much as we do.

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Veterinary clinic in Japan by Mountain Loghome, 2015. Architect Hiroki Murakami; engineering by Mountain Loghome. Photo ©Mountain Loghome Fishermans village rental houses in Norway by Mountain Loghome, 2016. Architects Carsten Mann and Oliver Göritz; engineering by Mountain Loghome. Photo ©Oliver Göritz Timber frame element house in Estonia by Mountain Loghome, 2017. Architect Priit Leisalu; engineering by Mountain Loghome. Photo ©Priit Leisalu

NORD HOMES TIMBER FRAME ELEMENT BUILDINGS

How did your enterprise begin? Have your ambitions changed since then? Nord Homes Kristjan Vendik: Nord Homes is a fairly young enterprise that has been in the market for about ve years. Although my university education was in law, I have always been interested in architecture and liked the idea of building prefab houses. My brother has experience in architecture and has good contacts in construction, so we started out together and have since worked with a variety of commissions and clients: creating summer cottages, private dwellings, and also a modular school building in Helsinki city centre, among others. What is the key to your success? Nord Homes is a small prefabrication factory and builder with an architecture o ce. We can o er custom-made designs with technical drawings, acquiring building permits and full-service construction.

Kristjan Vendik Board Member Managing Director

Company name Year of foundation Category

Turnover Other activities/products

Membership Awards

Markets

Nord Homes OĂ&#x153; 2013 Residential buildings, summer cottages, terraced houses, garden houses, saunas, apartment buildings, public buildings 0,6 MEUR (2017) Construction works such as laying the foundation, connections to technical infrastructure, installation of heating and ventilation, water supply and sewage, electrical installation, interior nishing Estonian Woodhouse Association Estonian Chamber of Commerce and Industry Prefab House of the Year 2017 (Best garden house award) Business and Development Centre of PĂ¤rnu County nominee for ""The Best Entrepreneur of the Year"" in 2016 and 2017" Estonia, Finland, Norway, Sweden

www.nordhomes.com info@nordhomes.com +372 5897 4122 Erika 14, Tallinn 10416

How do you see the future of your enterprise? In the future we see ourselves more as a producer of timber-frame element houses, rather than as an on-site builder especially for the export projects. We would still want to do custom designs and install our products on site, but the nishing works of the house should be organized by the client. How do you see the timber construction industry in Estonia in general? Regarding the potential of our industry and looking at the mode of operations of other bigger companies in our sector, we are more focused on private clients with a personal approach to the design and building process, not just the production of the house elements. What are the advantages of being based in Estonia? The majority of our production goes to the Estonian market where we've noticed clients becoming more and more aware that timber element houses have good energy e ciency and that the prefabrication method allows homes to be built more quickly than the traditional way. What are the challenges for export? We currently export around 10-20% of our production and hope to increase our export capacity. We are open to business with clients in Scandinavia where the Estonian producers have notable credibility. We are truly grateful to our colleagues who have contributed to such a positive image. We are fully aware that successful export depends on our ability to add value to our products. It could be that this added value resides in our capacity to provide custom-made design and engineering solutions that are produced in our factory and then installed on site. Our design o ces could be located in target markets close to our clients while the manufacturing takes place in Estonia.

Garden house in Estonia by Nord Homes, 2017. Architectural design and engineering by Nord Homes. Photo ©Elina Kasesalu > Private house in Estonia by Nord Homes, 2017. Architectural design and engineering by Nord Homes. Photo ©Edmond Mäll Summer house in Estonia by Nord Homes, 2017. Architectural design and engineering by Nord Homes. Photo ©Nord Homes

NORDIC HOUSES TIMBER FRAME ELEMENT BUILDINGS

Argo Saul Board Member CEO

Company name Year of foundation Category Turnover Other activities Brands/Partners Membership

Certi cates Awards

Markets

Nordic Houses KT OÜ 2002 Cabins, private houses, row houses, apartment buildings 7,6 MEUR (2017) Timber frame pre-cut houses, designing Nordic Houses, Buen Gruppen, Nurban, Tehasemaja Estonian Woodhouse Association Estonian Wooden Houses Cluster Norwegian-Estonian Chamber of Commerce Responsible Bussiness Forum Estonian Chamber of Commerce and Industry ETA; ISO 9001; ISO 14001; Successful Estonian Company 2017 (credit rating AAA) Prefab House of the Year 2015 (1st prize) Responsible Bussiness Index Gold Level 2017-2018 Excellence in Innovation and Growth Award of Norwegian Business Awards 2018 ( nalist) Scandinavia, Western Europe

www.nordichouses.eu nordic@houses.ee +372 602 5300 Valge 13, 11415 Tallinn

How did your enterprise begin? Have your ambitions changed since then? Nordic Houses Argo Saul: I lived in Norway in the 1990s and saw a strong market potential for wooden houses there. Upon my return to Estonia I was mediating contacts between Norwegian clients and Estonian producers when a client came for a visit with a Norwegian architect Asbjørn Buen. A business idea was born upon our mutual understanding and we took o with Nordic Houses, initially producing pre-cut cabins. Since 2007 we have also been making element houses, allowing us construct other kinds of living spaces, including apartment buildings, and diversifying our markets and clientele. What is the key to your success? Deciding which products and services would be competitive at which markets, and then keeping the focus. Our main clients in Norway, Sweden and Germany are business clients who value us as a trustworthy partner with quality products and services. But we also explore opportunities in other markets. Launching a new house series Nordic Compact in Norway, with award-winning architecture, has led us to contracts in the Netherlands and in Estonia. How do you see the future of your enterprise? We aim to grow further and to build a new production plant to move the two production units under one roof. While o ering custom-made solutions, we also want to take the initiative and develop standardised concepts and solutions for holiday cabins and living houses. How do you see the timber construction industry in Estonia in general? Our sector is growing. Estonian producers tend to be small and the markets are bigger than we can ll. I believe in the innovation and sustainability of our sector. What are the advantages of being based in Estonia? Estonia is the largest exporter of timber houses in Europe, there's a lot of competence and capacity here. We have long traditions in building from timber, as well as an excellent location for the Nordic markets. Our Scandinavian clients say that we also have a business culture that is not so di erent from theirs. What are the challenges for export? Expanding to new markets, since it is important to know the local regulations. More than 80% of our export goes to Norway where we have 10 distributors and our own brand Buen. Asbjørn Buen, the architect of our cabins, is called the 'king of mountain cabins' in Norway. We have recently succeeded in entering the Swedish market, but perhaps our greatest challenge is Germany. We aim to understand those markets, to gain trust and win some bigger projects.

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Recreational homes in Rogaland, Norway, 2015. Architectural design by Trilog Studio architects Mari-Liis Vunder, Olavi Kukk and Kristjan Tõlk; engineering by Nordic Houses. Photo ©Maris Tomba Terraced houses in Randaberg, Norway, 2015. Architect Jarle Taksdal, engineer Oliver Orula. Photo ©Maris Tomba Cabin in Veggli, Norway, 2015 the best-selling cabin model in Norway. Architect Asbjørn Buen; engineer Gunnar Snippen. Photo © Sven-Olof Englund / XL-Studios

PALMAKO MACHINED LOG HOUSES TIMBER FRAME ELEMENT BUILDINGS GARDEN HOUSES

Rain Raudsepp Board Member CEO

Company name Year of foundation Category Turnover Share of wooden houses: Other products Brands Membership

Awards Markets

Palmako AS 1997 Residential buildings, garden houses, carports, pavilions 60,8 MEUR (2017) 38,6 MEUR Glue laminated timber, machine rounded timber, wood pellets Palmako, Prebuilt, Imprest, Construct, Heatit Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonian Chamber of Commerce and Industry Prefab House of the Year 2015 (Best garden house award) Estonia, Germany, France, UK, Sweden, Norway

How did your enterprise begin? Have your ambitions changed since then? Palmako Rain Raudsepp: Palmako was created in 1997 by the owners of Lemeks, a classical forestry company. They wanted to try producing machined log houses. In 2001, the focus was on export, and today we are one of the top three largest producer-sellers of square log garden-houses in Europe. Over time we've also started making other products, such as glulam, pre-fab houses and wood pellets. What is the key to your success? Geographical location, the availability of high quality raw material, the hardworking Estonian people. We are exible, quick and keen to meet our customers' various requirements. Our priorities in recent years have been product development, conscious marketing to attract business clients with purchasing power, and maximum mechanisation of manufacturing. How do you see the future of your enterprise? Machines carrying out tasks that are too simple for human beings we need humans for their brains rather than their physical labour. Our focus is on user-friendly comfort, o ering modular products and product series that t nicely together across di erent categories, resulting in an integrated, functional whole. We aim to make full use of the time and e ort we have invested in design and engineering to keep the price of our products competitive. How do you see the timber construction industry in Estonia in general? Our advantage used to lower prices, but today it must be found in something else. The price of wood is unjusti ably high in Estonia compared to, for instance, Germany, Austria or Holland. We could import raw material from Russia, but then we'd lose some of our competitive assets. The future of our sector is directly related to the politics of state forestry. What are the advantages of being based in Estonia? To be honest, we have considered expanding our manufacturing to Latvia. For us, all three Baltic countries are a single 'cost region'. We have some advantages compared to our competitors in Holland, Belgium or Finland, but also disadvantages: for instance, regarding transportation and logistics.

www.palmako.com contact@palmako.ee +372 735 5530 NĂ¤ituse 25, Tartu 50409

What are the challenges for export? We depend a lot on our export partners. When they have a crisis, so do we; and then it's up to us to react quickly. We focus on the European markets: France, UK, Norway, Sweden and Germany, where we have our branch o ces and sales teams. The reputation of Estonian manufacturers is constantly growing, so investment in the Estonian brand should pay o eventually.

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Square log garden house 'Heidi' by Palmako, 2013. Architectural design and engineering by Palmako. Awarded as 'Best garden house' at the 'Prefab House of the Year' contest in 2015. Photo from private collection Fence and terrace panels 'Reena' by Palmako, 2018. Architectural design and engineering by Palmako. Photo ÂŠAndres Saarnak Palmako pavilion 'Melanie' in Germany, 2011. Architectural design and engineering by Palmako. Photo from private collection

PALMATIN MACHINED LOG HOUSES TIMBER FRAME ELEMENT BUILDINGS

Kaljo Valler Board Member

Company name Year of foundation Category Turnover Other products/activities Membership

Certi cates Markets

Palmatin OÜ 1995 Residential houses, Semi-detached houses, free time centres, holiday homes 2,5 MEUR (2016) "Pre-cut" construction elements Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonian Chamber of Commerce and Industry German-Baltic Chamber of Commerce CE; ISO 9001; FSC®; Successful Estonian Company 2017 (credit rating AA) Germany, France, Italy, UK, Sweden

How did your enterprise begin? Have your ambitions changed since then? Palmatin Kaljo Valler: Palmatin has been active in log house design, manufacture and construction since 1995, and today our trade mark is well known. When we began, we could see the huge demand for log homes on the German market. I had prior experience in round log construction so we started production using local wood. Today we o er our clients a complete service, including planning, design, engineering, manufacture, transportation and assembly. What is the key to your success? Continuous product development our product variety has increased considerably as we have moved from manufacturing only solid round logs to making more complex structures using glulam timber and producing prefab element houses. Advances in technology and automation have helped optimise production, contributing to savings in labour costs and use of raw materials. How do you see the future of your enterprise? Our focus is on product development and technology. We use modern CNC automatic production lines, and also CAD so ware to engineer our houses. Experience has shown us that we must continue to be aware of contemporary solutions and implement them well. Today we have CLT buildings on the market, but 3D-printing could also become a trend in our sector in the next 10 to 15 years. We need to keep up with the pace of innovation. How do you see the timber construction industry in Estonia in general? The use of wood as a building material has an extensive history in Estonia. There is always a demand for homes made of natural materials. It is clear that the use of natural building materials is gaining popularity, but we must learn to use those materials with emergent technologies. The government could help our sector by supporting Investment in novel technologies, o ering nancial support in production development. What are the advantages of being based in Estonia? We have professional manufacturing, engineering and budgeting teams, all with years of experience in their elds.

www.palmatin.com info@palmatin.com +372 605 4895 Tammi rd 40b, Rannamõisa, 76906 Harju county

What are the challenges for export? The Estonian market is very small, so the only option is to sell in foreign markets where we have to adapt to the local conditions and make our products acceptable. Hence, exibility helps, as does knowing the rules and regulations of those target markets. In addition to Germany we have exported also to some more exotic countries, such as India, South Korea, Morocco and Japan. Our market is broadening thanks to the availability of online marketing tools.

Machined log house in Estonia by Palmatin, 2013. Architectural design and engineering by Palmatin. Photo ©Janne Luigla / Palmatin > House in Estonia by Palmatin, 2018. Architect Ott Ojamaa; engineering by Palmatin. Photo ©Palmatin Machined log house in Germany by Palmatin, 2013. Architectural design and engineering by Palmatin. Photo ©Palmatin

PEETRI PUIT SOLID TIMBER CONSTRUCTION (CLT)

Tarmo Tamm Board Member

How did your enterprise begin? Have your ambitions changed since then? There was a desire to glue wood together essentially, this has not changed over time, yet the solutions we o er have evolved. Initially, we used nger joints, then looked into edge glued material, made the beams longer and started manufacturing CLT that enables to produce an entire building. At rst, the majority of our production went to Germany, but today the Estonian market is important for us, as it is complicated to transport our products over long distances due to their size. What is the key to your success? Focusing on the big picture. Our worldview coincides with our entrepreneurial aspirations there is no need to produce something you don't like in the rst place. Tondiraba Ice Hall and Viimsi Secondary School have proved viable reference projects to generate con dence in architects and construction industry at large, to use advanced timber solutions. How do you see the future of your enterprise? It all begins with an environmentally aware client.

Company name Year of foundation Category Turnover Other products Brands Membership

Certi cates Awards Markets

Peetri Puit OÜ 2002 Residential buildings, public buildings 15 MEUR (2017) CLT, Glulam, DUO-TRIO Arcwood Estonian Woodhouse Association Estonian Forest and Wood Industries Association Estonian Chamber of Commerce and Industry FSC Chain of Custody System; Successful Estonian Company 2011 (credit rating AAA) 2012 Äripäev Põlvamaa TOP 1st place; Estonian SME exporter nominee Germany, Finland, Latvia, Lithuania, France

www.arcwood.ee info@arcwood.ee Phone +372 799 1200 Pärnaõie 32, 63308 Põlva county

How do you see the timber construction industry in Estonia in general? We don't gain much by exporting timber buildings and importing metal and steel products (e.g. from China) to use them in concrete buildings. However, when we build timber buildings here, in Estonia, we can keep the resources and investments here, thereby also contributing to environmental aspects. The government should introduce a CO2 emission calculator for assessing the sustainability of projects when acquiring building permits. This would change our building culture, behaviour of clients and the mindset of designers-engineers, steering the construction industry towards more resilient solutions. What are the advantages of being based in Estonia? I believe that the market of a prefab buildings' manufacturer should be near the production location, preferably in the same country. Transport is tied to CO2 emissions, thus the market should be within the reach of 700-1,000 kilometres. Local architects are our 'product designers', we need to also foster collaboration with local engineers and construction companies who might feel more comfortable building from steel and concrete right now, but successful reference projects can convince them to build more from timber. What are the challenges for export? The goal should be not just to export prefab timber buildings, but environmentally sustainable and smart timber buildings with integrated ICT solutions and low maintenance cost. This is what we would like to o er to our clients, in collaboration with our partners.

Tondiraba Ice Hall in Tallinn, Estonia by Merko Ehitus, CLT constructions by Peetri Puit/Arcwood. Architectural design by Kadarik Tüür Architects, engineering by EA Reng and Streng. Photo ©Kaido Haagen

Puumarket sales department in Tallinn, Estonia by Peetri Puit/Arcwood. Architectural design by TEN Architects, engineering by PIKE. Photo ©Indrek Gutmann

> O ce building in Põlva, Estonia by Peetri Puit/Arcwood. Architectural design by Kadarik Tüür Architects, engineer Indrek Mäe. Photo ©Tõnu Tunnel

PINSKA TIMBER FRAME ELEMENT BUILDINGS TIMBER FRAME MODULAR BUILDINGS

How did your enterprise begin? Have your ambitions changed since then? Pinska Marko Pukk (Chairman): I started in 1999 with small-scale production of lining board and sawn timber. In 2007, Andrus Vender joined me and we bought a sawmill in Pinska village and took our production facilities there. A few years later we sold the sawmills and shi ed our interest to nger-jointed laminated timber using the le overs of wood processing , as well as timber trusses. Today, we have our own glulam factory. In 2013, we began production of timber-frame element buildings, and we now have a separate factory to produce them. Thus we have grown from a tiny sawmill into a versatile enterprise. What is the key to your success? We are probably the only enterprise in our sector that produces all element building components ourselves; and we also sell to other prefab factories in Estonia. Other timber building factories in the country have therefore become our clients, and this has secured our position on the market.

Company name Year of foundation Category Turnover Other products/activities Membership Certi cates Markets

Pinska OĂ&#x153; 1999 Residential houses, ancillary buildings 4,4 MEUR (2016) Laminated timber, roof trusses, sawn timber Estonian Woodhouse Association Estonian Wooden Houses Cluster CE Scandinavia

How do you see the future of your enterprise? During the past two years we have invested lots in our glulam factory. The next step is to increase the volume of our sawn and surfaced timber products, and painted weatherboarding production. How do you see the timber construction industry in Estonia in general? We subcontract to other prefab factories and produce timber elements for factories both in Estonia and abroad. It is clear that factories in Poland and Latvia are our ercest competitors, as they are much larger, so Estonian manufacturers will need to cooperate more and implement joint projects to survive. What are the advantages of being based in Estonia? This is a di cult question. The workforce is diminishing and we need to import labour, so all of our producers in the sector are in a tough spot. Nevertheless, we are an Estonian-owned company and we are committed to further development of the local timber industries.

www.pinska.ee info@pinska.ee +372 5648 8517 Sepa rd 7, Pinska village, Viljandi

What are the challenges for export? We export about 30% of our production directly mostly to Scandinavia and the rest of our production is exported by other Estonian companies who buy our products for their prefab manufacture. We have tried selling to Germany, but the Asian market looks particularly promising. Generally, we must be able to di erentiate ourselves and our products on the international market. We need to focus greater attention on the speci c niche products that make us stand out.

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Apartment buildings in Norway by Pinska, 2017. Engineering by DMT Engineers; client Komforthus. Photo ©Pinska Timber frame element houses in Norway by Pinska, 2016. Architectural design and engineering by Pluss; client Komforthus. Photo ©Maris Tomba Terraced house in Norway by Pinska, 2017. Engineering by Trebuild. Photo ©Pinska

PRODUCTION HOUSE TIMBER FRAME ELEMENT BUILDINGS TIMBER FRAME MODULAR BUILDINGS

How did your enterprise begin? Have your ambitions changed since then? Production House Kaarel Einpalu: We are a fairly young enterprise having started only in November 2016. Our initial ambition was to become one of the ten largest producers in our sector in Estonia within four years. Our production volumes continue to increase, so we are on schedule to achieve this. Today, we design, produce and assemble energy-e cient element and modular buildings. What is the key to your success? We have a good team who communicates with clients without delay and responds rapidly to their needs.

Kaarel Einpalu Export Manager

Company name Year of foundation Category Turnover Other products/activities Brands/Partners Membership Certi cates Markets

Production House OÜ 2016 Residential houses, terraced houses, public buildings, facade elements 1,9 MEUR (2016) Constructional engineering Production House Estonian Woodhouse Association CE; ETA Estonia, Norway, Sweden, Finland, Italy

How do you see the future of your enterprise? We see ourselves as a strong producer and valuable partner to real estate developers and construction companies. We currently operate in a facility of 1500 square metres and are planning to move into a much larger factory of 8000 square metres. We expect to have a turnover of 10 million Euros by 2020. The manufacture of modular buildings has a good level of optimisation compared to other ways of building from timber. How do you see the timber construction industry in Estonia in general? The main challenge is to achieve greater production e ciency than in other countries. Looking at the broader picture, the trend in Europe, Canada and the US is towards prefabricated and o -site construction. One of the reasons for this is the rising cost of labour, which is related to the diminishing labour force due to shi s in demographics. The cost of o -site construction is lower than that of a conventional on-site process. The delivery and assembly of timber buildings on-site is quick, and timber construction is favoured in Scandinavia also because it is less expensive than concrete or stone construction. What are the advantages of being based in Estonia? Estonia's timber building producers have long experience in the eld and an outstanding reputation internationally. Our home market is small, forcing us to search for export opportunities, optimising our production and increasing e ciency. In the long term, it is important that we continue to invest and secure our resources of raw materials.

www.productionhouse.ee production@productionhouse.ee +372 521 5872 Tööstuspargi cross 2, Vinni, Lääne-Viru county 46601

What are the challenges for export? It is a little like an international athletic championship: you train hard, and then you train some more, hoping that one day you win. We are about to achieve our rst commission in Italy and Central Europe is now favouring timber construction not only Scandinavia.

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Residential buildings in Oslo, Norway by Production House, 2016. Architect Jens Selmer, engineers Veiko Koppe and Madis Karu. Photo ©Sven-Olof Englund / XL-Studios Terraced house in Oslo, Norway by Production House, 2016. Architect Veiko Koppe; engineering by Production house. Photo ©Sven-Olof Englund / XL-Studios Terraced houses in Vollen, Norway by Production House, 2016. Architectural design by Kristiansen & Kernhardt arkitekter, engineers Veiko Koppe and Hanna Jakobson. Photo ©Sven-Olof Englund / XL-Studios

Q-HAUS TIMBER FRAME ELEMENT BUILDINGS TIMBER FRAME MODULAR BUILDINGS

Reino Soots Board Member CEO

Company name Year of foundation Category Turnover Brands/Partners Membership

Certi cates Awards

Markets

Q-haus Baltic OĂ&#x153; 2006 Residential houses, terraced houses, apartment buildings, public buildings 3,7 MEUR (2017) AF Gruppen Norge AS Asker EntreprenĂ¸r AS Bonava Sweden AB Estonian Woodhouse Association Estonian Wooden Houses Cluster German-Baltic Chamber of Commerce Estonian Chamber of Commerce and Industry Norwegian-Estonian Chamber of Commerce ETA; ISO 9001; ISO 14001; CE Prefab House of the Year 2016 (The Most Energy E cient Public Building award) Prefab House of the Year 2018 (Del readers' special prize) Norway, Sweden, Germany, Estonia, Denmark, Switzerland

www.qhaus.eu info@qhaus.eu +372 511 1444 Osmussaare 8, 13811 Tallinn

How did your enterprise begin? Have your ambitions changed since then? Q-haus Reino Soots: The Q-haus brand was created in 2004. It was already clear that timber construction was moving towards prefabrication and that export would become the main driver for Estonian manufacturers. It took longer than expected for the modular buildings to become a success story, but today we know we made the right decision. We are focused on development and on maintaining the quality of our products and services. Export makes up 95% of Q-haus production. What is the key to your success? The loyalty of our employees and especially their openness to new ideas and innovative solutions. For years we have been investing in the development of our systems, creating our own online working environment. We use an ERP system [Enterprise Resource Planning Ed.] that covers our entire production process, and this allows us to deliver projects more quickly and with a smaller team than our competitors. How do you see the future of your enterprise? Industry 4.0 is the key to the future: manufacturing processes can be managed by AI and robots, reducing the burden on workers. Furthermore, we strive to add value to our products, and to expand our export market beyond European borders. How do you see the timber construction industry in Estonia in general? We are not very well known in the larger markets outside Scandinavia, where Estonian wooden house-builders already have an excellent reputation for their high standards. The government supports our ambitions, but more could be done to promote our timber construction industry and build our reputation internationally. Secondly, we should engage world-renowned architects to make our products more attractive. Thirdly, our industrial productivity is too low, while the share of manual labour is proportionally too large some of the more successful producers are already tackling these issues in order to stay competitive. What are the advantages of being based in Estonia? Smart solutions and proximity to the raw material, wood. Equally important is the high level of customer service and business culture, which is highly regarded among developed countries. The latter bene ts not only our sector, but all of Estonian industry. What are the challenges for export? As I mentioned earlier, low productivity and limited use of automatization make it di cult to provide goods and services at a competitive price and increasing labour costs exacerbate this. The industry needs greater investment in machine fabrication and marketing.

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Kautokeino health care centre in Norway by Q-haus, 2015. Architectural design by Asplan Viak; engineer Jüri Kliimask. Photo ©Maris Tomba Private houses in Tromsø, Norway by Q-haus, 2014. Architectural design by Nordbohus; engineering by Inseneribüroo Pluss. Photo ©Maris Tomba Upside-down house in Tartu by Q-haus, 2017. Architect Indrek Taukar; engineer Tõnu Kattai. Photo ©Sven-Olof Englund / XL-Studios

RITSU TIMBER FRAME ELEMENT BUILDINGS TIMBER FRAME MODULAR BUILDINGS MACHINED LOG HOUSES

Elari Kivisoo CEO

Company name Year of foundation Category Turnover Other products/activities Brands/Partners Membership

Certi cates Awards Markets

Ritsu AS 1991 Residential houses, summer houses, public buildings 3,1 MEUR (2017) Construction of wooden houses Ritsu Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonian Chamber of Commerce and Industry ETA; CE; ISO 9001:2015 Prefab House of the Year 2016 (Best machined log house award) Germany, Norway, Holland, UK, France, Italy, Sweden, Estonia

www.ritsu.ee ritsu@ritsu.ee +372 766 1707 Linna village, TĂľrva parish, 68619 Valga county

How did your enterprise begin? Have your ambitions changed since then? Ritsu Elari Kivisoo: Ritsu started in 1991 as a factory producing the machines that process wood for use in wooden houses. Mechanical engineering is in the DNA of Ritsu rst there's a machine and then there's a building. Initially, our ambition was to make the best machines for tenon-making and sawmills, as well producing garden houses. As time went on, our machines and buildings grew more complex and began producing glulam and round log dwellings, wooden element and module houses. Today, we de ne ourselves as a maker of environmentfriendly solutions. We have erected over 3500 buildings in 39 countries. What is the key to your success? Our unique technology, built by us and improved over the years. We o er our clients timber frame, square glulam and round log construction, for which we have the largest manufacturing capacity in the region. How do you see the future of your enterprise? We aim at development and growth, with further standardisation and automation, while remaining exible. We would also like to undertake speci c non-standard projects and bigger development projects in Scandinavia and Central Europe. How do you see the timber construction industry in Estonia in general? Many of our producers need to rede ne what they are about. Are they compact manufacturers of custom-made solutions, or are they taking on larger projects and higher volumes of production, requiring substantial standardisation and automation. What are the advantages of being based in Estonia? Estonian producers have excellent knowledge and experience in carrying out distinct projects in various markets, and remain exible in meeting the client's expectations. It is important for us to sustain this exibility in the future. The Estonian Woodhouse Association is a great platform for entrepreneurial collaboration: to exchange information on technology, implement larger projects together, and prepare joint proposals for ongoing Calls for Tender. What are the challenges for export? Keeping up-to-date with rules and regulations in the target markets, and dealing with their protection mechanisms on a daily basis. Local producers do not generally welcome us into their markets, especially knowing that Estonian manufacturers o en go beyond the client's needs, o ering a better product and higher quality. The Association provides a supportive framework to help us tackle those issues.

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Lundegard Hotel in Norway from timber frame elements by Ritsu, 2017. Architect Hilde Grøneng; engineering by Ritsu. Photo ©Elari Kivisoo Summer house in Pühajärve, Estonia by Ritsu, 2014. Architect and engineer Endel Kuus. Photo ©Maris Tomba Machined log house in Võru county, Estonia by Ritsu, 2016. Architect and engineer Heigo Ilves. Photo ©Sven-Olof Englund / XL-Studios

SAARE EREK TIMBER FRAME ELEMENT BUILDINGS MACHINED LOG HOUSES GARDEN HOUSES

How did your enterprise begin? Have your ambitions changed since then? Saare Erek Kaarel Väer: In recent eight years, we've changed from a local construction company to an international production enterprise, o ering garden houses and modular wooden element buildings. We're starting up a factory in China, a er 4 or 5 years of e orts in that direction. We made this decision a er calculating our production expenses, response speed due to the logistics, and so on. What is the key to your success? Great patience and a lot of work in moving forward. As with any business, timing is very important.

Kaarel Väer CEO

Company name Year of foundation Category Turnover Share of wooden houses Other products/activities Brands/Partners Membership Certi cates Awards

Markets

Saare Erek AS 1990 Residential houses, summer houses, garden houses 5,95 MEUR (2017) 4,5 MEUR Construction, concrete production, transportation services Saaremaa Houses, architectural o ce TEMPT Estonian Woodhouse Association Estonian Wooden Houses Cluster ETA certi cate is upon application Saaremaa Top Winner 2006 (Estonian daily 'Äripäev') Kuressaare Best Employer 2015 (Kuressaare Town) Germany, Sweden, Norway, Holland, China, Estonia

www.saaremaahouses.ee info@saaremaahouses.ee +372 5562 3098 Pihtla rd 28, 93815 Kuressaare

How do you see the future of your enterprise? Next year we plan to build another garden house factory, although our main emphasis in the coming years is on timber building manufacturing and we're currently erecting a new factory for wooden element buildings. How do you see the timber construction industry in Estonia in general? We need to raise the awareness of the Estonian client about the standards of contemporary wooden buildings, regarding their construction quality, meeting re safety regulations etc. The Estonian client has so far preferred stone or concrete buildings, and it's di cult to change human habits. We are masters of export with most of our production going to Scandinavia, but I am certain that in about ve years time around half of our market will be in Estonia. I believe the share of the Estonian market for the whole timber construction industry will increase signi cantly during the coming years. Due to increasing input and labour costs it makes sense to prefabricate as much as possible in a factory, so o -site construction is a rising trend which is bene cial in many ways. What are the advantages of being based in Estonia? Besides wooden building production we have also sustained some of our other activities in the eld of construction. We have sand and gravel quarries and concrete factories, and construction materials, including metals, are all available wholesale in Estonia. What are the challenges for export? Our current interest is China, which is in a similar phase of development to South Korea and Japan about ten years ago. Today, China has a strong middle class with purchasing power and regulations favour timber construction building from wood is a simple way to exhibit environmental friendliness. Also, the potential of the German market has not been fully explored Estonian producers have sold garden houses and summer cottages there, but fewer wooden modular-element buildings.

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House in Estonia by Saare Erek, 2016. Architect Mihkel Urmet; engineer Mehis Kallas. Photo ©Maris Tomba > Timber frame element house in Lääne county, Estonia by Saare Erek. Architects Taavi Kuningas and Kadri Johanson; engineer Sander Allvee. Photo ©Sven-Olof Englund / XL-Studios

TENDER

How did your enterprise begin? Have your ambitions changed since then? Tender Martti Soidla: My father Margus was working in Finland a er Estonia regained independence in 1991, and it was there he got the idea and found his rst client. He joined up with constructor Tõnis and log-house builder Kaldi from his home village Tudu. Tender was born from their shared interest in cra log-construction. They did not need a signi cant capital investment to start up as there was plenty of demand for such products in Finland. Their ambition at the time was to create jobs for themselves, to establish their own production line and to start exporting to other Nordic countries. Today, the goal is simply to do things better. The majority of our production goes abroad mainly to Finland, but also to Norway and Sweden.

HANDCRAFTED LOG HOUSES

Martti Soidla CEO

Company name Year of foundation Category Turnover Other activities/products Brands/Partners Membership Awards Markets

Tender Ehitus OÜ 1996 Residential houses, summer houses, saunas 0,8 MEUR (2017) Timber frame houses RMK Estonian Woodhouse Association Estonian Wooden Houses Cluster Prefab House of the Year 2015 (Best handcra ed log house award) Finland, Estonia, Sweden, Norway, Denmark, Germany

What is the key to your success? Flexibility. We re-use ancient materials and can also use new materials in construction, such as cutter chip, ax felt, wood bre or sheep wool for insulation. The fact that our owners continue to be closely involved in production is important, and so is the loyalty of our workers. We take each project 'personally', communicating directly with the client, visiting the project site, discussing the technicalities even 15 years a er completing the building, if necessary. We have many returning clients. How do you see the future of your enterprise? We wish to stay in our niche, working more e ectively digitising management and standardising our products as much as possible. We continuously invest in training our employees, so they are able to add further value to our products and services. Collaboration with other top specialists leads to the best contemporary solutions for the end-user. How do you see the timber construction industry in Estonia in general? The price tag on labour and wood is increasing, raising the net cost of our products. What are the advantages of being based in Estonia? Our wood comes from Estonian forests. 15 years ago our assets might have been in the lower cost of labour and raw materials, but today each enterprise needs to further develop its advantage in terms of our competence and experience compared to producers from other countries.

www.tender.ee info@tender.ee +372 5551 8185 Jaama 19, 46606 Tudu, Lääne-Viru county

What are the challenges for export? Engaging innovation, utilizing environmentally friendly construction materials and developing technical solutions in our manufacturing. We have a lot of reference projects across Finland, helping to spread the word, building trust in our products and attracting new clients.

House in Estonia by Tender Ehitus, 2012. Architect Lauri Nõmme; engineer Vallo Goro hko. Photo ©Maris Tomba > Handcra ed log house in Norway by Tender Ehitus, 2016. Architectural design by FORM gruppen; engineering by Greco Engineering. Photo ©Maris Tomba Log house in Laulasmaa, Estonia by Tender Ehitus, 2016. Architect Ülle Maiste; engineering by Greco Engineering. Photo ©Sven-Olof Englund / XL-Studios

TENE

How did your enterprise begin? Have your ambitions changed since then? Tene Kaubandus Riho Reesar: Tene Kaubandus (Grupotene) started in 1999. At rst we had facilities but no clear idea what to do. By chance, we began producing wooden garden houses. We exported to somewhat complicated markets such as Switzerland, Germany and Holland. The world changed with the economic crisis in 2007, and instead of a few larger clients we had a multiplicity of smaller ones. Today we produce various wooden products that include chalets, sheds, log cabins, gazebos, awnings, swings and garden furniture. We produce all the wooden components of our garden houses ourselves, so we don't outsource much. Two thirds of our clients are business clients and about 95% of our production is exported.

MACHINED LOG HOUSES GARDEN HOUSES

Riho Reesar Chairman

Company name Year of foundation Category Turnover Brands/Partners Membership Markets

Tene Kaubandus OĂ&#x153; 1999 Residential houses, summer houses, garden houses, garages, pavilions 6,8 MEUR (2016) Grupotene Estonian Woodhouse Association Estonian Wooden Houses Cluster Spain, Portugal, France, Italy, Germany, Poland, Finland, Sweden, Denmark, Canada

What is the key to your success? We have been producing for markets where the quality requirements are very, very high. How do you see the future of your enterprise? We have a loyal client base that we can grow with. Our focus is not on production volume but on quality. How do you see the timber construction industry in Estonia in general? We are in a complicated situation. The world still expects Estonia to produce a high-quality product with a fairly low price tag, but our sector in Estonia has moved from cheap subcontracting to a higher level. To keep selling we must change the way we market ourselves. What are the advantages of being based in Estonia? We are comfortable keeping our production in Estonia the people are reliable and the majority of enterprises we have encountered are trustworthy. Although the workforce is diminishing, it is still possible to nd professional workers so long as you o er a competitive salary. The local infrastructure and taxation system are convenient. What are the challenges for export? Today our products go to about 15 countries. We are trying to enter directly into retail markets to reduce our dependency on intermediaries.

www.tene.ee info@tene.ee +372 472 2000 Lihula rd 22b, 90510 Haapsalu

Garden house 'Mari' in France by Tene Kaubandus, 2015. Photo ©Tene > Custom project in France by Tene Kaubandus, 2008. Photo ©Tene Garden house 'Trondheim' in Germany by Tene Kaubandus, 2004. Photo ©Tene

TIMBECO TIMBER FRAME ELEMENT BUILDINGS TIMBER FRAME MODULAR BUILDINGS

Siim Leisalu Board Member CEO

Company name Year of foundation Category

Turnover Brands/Partners Membership

Certi cates Awards

Markets

Timbeco Woodhouse OĂ&#x153; 1993 Public buildings, residential buildings, apartment buildings, timber frame facade and roof elements, modular buildings 12 MEUR (2017) Timbeco, Thermolog Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonian Chamber of Commerce and Industry ETA; CE; ISO 9001; Successful Estonian Company 2016 (credit rating AAA) Prefab House of the year 2018 (Best Special Solution award) Prefab House of the year 2017 (Architectural award) Norway, Sweden, Japan, Estonia, UK, Switzerland

www.timbeco.ee info@timbeco.ee +372 673 7700 TĂľdva road, Saku 75508, Harju county

How did your enterprise begin? Have your ambitions changed since then? Timbeco Siim Leisalu: We are a 25-year old family company. Our woodwork skills have been passed along through three generations: my grandfather is a life-long cabinet maker and builder who studied wood processing. Our focus has shi ed from hand-cra ed to machined loghouses, and since 2007 to the production of prefabricated wooden element buildings. We started out by making small-scale private dwellings, but today we concentrate on bigger and more complex commissions, such as terraced houses, apartment blocks, o ce buildings, schools and kindergartens. Since 2013 we have also been producing wooden facade elements and we are currently making wall and roof elements for Helsinki Central Library. Our annual growth has usually been 20-30%. Last year it was 40%. What is the key to your success? We have a strong synergetic team, competent in engineering, construction, marketing and project management. We also have the technical capacity to provide accurate solutions to complex tasks: we use 3D design tools, enabling wood processing to be done with robotic machines. We o en consult with our clients on how to combine concrete, steel and wood in their projects. How do you see the future of your enterprise? Our e ciency, speed and productivity can be raised by product standardization. How do you see the timber construction industry in Estonia in general? Prefabrication and modularity are becoming more and more popular in the timber building sector. Today's client wants a full service from design consultancy to assembly on site. Companies with a good symbiosis of e ectiveness, manufacturing readiness and a sound engineeringtechnical knowledge base have a better chance of survival. Cooperation within the sector is vital. What are the advantages of being based in Estonia? The level of knowledge in engineering and technology is high in Estonia and our business culture is close that of Scandinavia. However, the cost of labour is increasing we must compensate with competence and e ciency if we are to sustain a competitive edge. What are the challenges for export? We currently export 95% of our production mainly to Scandinavia, but recently to Switzerland and Germany too. Over the years we have exported to 26 countries, but now we choose our markets very carefully, rst studying the speci c regulations and then seeking out trustworthy local partners. Regarding the new energy e ciency requirements: we are ready to meet them.

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Timber prefabricated facade elements for Lervig Brygge apartment blocks in Stavanger, Norway by Timbeco, 2015. Architectural design by Lund Hagem Arkitekter with Atelier Oslo; engineer Karel Koitla. Photo ©Timbeco Facade elements for shopping centre in Norway by Timbeco, 2017. Architect AMB Arkitekter; engineer Alar Oinus, Erkki Aug. Photo ©Timbeco Apartment building in Linköping, Sweden by Timbeco, 2017. Architectural design by Botrygg AB; engineer Erkki Aug. Photo ©Sven-Olof Englund / XL-studios

VALMER PUIT HANDCRAFTED LOG HOUSES TIMBER FRAME ELEMENT BUILDINGS TIMBER FRAME MODULAR BUILDINGS

Valle Kuklase Board Member

Company name Year of foundation Category Turnover Membership Markets

Valmer Puit OĂ&#x153; 1993 Residential houses, summer houses, saunas 0,2 MEUR (2017) Estonian Woodhouse Association Estonia, Norway, Sweden, Finland

How did your enterprise begin? Have your ambitions changed since then? Valmer Puit Valle Kuklase: When Estonia re-gained independence, it was necessary to go along with the changes. I had a lot of free time on my hands and I wanted to do something for South Estonia, to create jobs here, so that life continues also in the more remote areas of the country. Our goals have shi ed according to the demand on the market and in society. Today, we build custom solutions for both log and prefabricated element houses, but also modular solutions. Although we work with standard designs, these can easily be used for designing a completely new house. Each house is unique: the logs are processed separately, ensuring the originality of each house. On the other hand, element houses are also practical: their production is protected from the weather and the whole construction process can take just 4 to 12 weeks depending on the layout of the house. On request, the houses can be assembled with all the necessary technical supplies. What is the key to your success? Consistency, an experienced team and quality production. How do you see the future of your enterprise? It is important to continue training and learning, to develop production, and to nd a steady external market. How do you see the timber construction industry in Estonia in general? To preserve Estonian log-house building culture, we must turn our attention to two aspects. Firstly, the European Union regulations concerning energy e ciency are becoming stricter for log houses, although a log house is, for instance, cool on a hot summer day, as we have witnessed this year. Secondly, the universities are not educating enough construction engineers and CNC operators to work in manufacturing. What are the advantages of being based in Estonia? Our long-term experience in timber construction, and also our favourable geographic location.

www.valmer.ee valle@valmer.ee; hardi@valmer.ee +372 501 9606; +372 5373 6887 Terminali rd 3, Himmaste village, PĂľlva county 63228

What are the challenges for export? Our log houses have been exported to Norway, Finland, Sweden and Denmark. To enhance our export potential, we must rst take into account the peculiarities of each country. For example, the Swedish market is overheating. Second, it has been ten years since the last economic downturn and it is inevitable that it will happen again. The third challenge is the intricacy of quality requirements, complicated procedures and language barriers in each target market.

Handcra ed log house in Põlva county, Estonia by Valmer Puit, 2016. Architectural design and engineering by Janek Sakkis and Valmer Puit. Photo ©Hardi Kuklase > Timber frame element house in Tartu parish, Estonia by Valmer Puit, 2018. Architectural design and engineering by Meelis Ainsoo and Valmer Puit. Photo ©Hardi Kuklase Timber frame modular o ce in Tartu parish, Estonia by Valmer Puit, 2018. Architectural design and engineering by Urmas Valeika and Valmer Puit. Photo ©Hardi Kuklase

VAROLA

How did your enterprise begin? Have your ambitions changed since then? Varola Toomas Heering: Varola was started in Räpina, Põlva County, by people who had gained experience in a former Räpina Forestry Farm. The farm had carried out a range of activities from forest felling to production of wooden houses, so Varola's founding partners were equipped with all the necessary know-how for wood processing, as well as the construction of related machinery. There was also a training centre for handcra ed log houses in Räpina and many of its graduates developed their own businesses in the eld. Varola was founded in 1997 during the 1990s we didn't need to look for clients, there was an abundance.

MACHINED LOG HOUSES GARDEN HOUSES

Toomas Heering Board Member Production Director

Company name Year of foundation Category Turnover Share of wooden houses Other products/ activities Membership

Markets

Varola OÜ 1997 Garden houses, summer cottages, saunas 2,9 MEUR (2017) 2,1 MEUR (72%) Furniture items, treatment of plywood Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonian Chamber of Commerce and Industry Germany, Holland, Norway, Estonia

Varola

PUITMAJAD

www.varola.ee info@varola.ee +372 795 1475 Linte village, Räpina, 64402 Põlva county

What is the key to your success? At rst our focus was on production management, whereas today it's on customer relations, contributing signi cantly to our sustainability. We aim to o er consistent quality. How do you see the future of your enterprise? We focus on custom projects, meeting the unique needs of each client. We produce high quality dwellings, summer homes, garden houses, gazebos and saunas we aim to build whatever the client may imagine. Square log-house producers all tend to use a similar construction method, so the di erence is in details: we emphasise high-quality raw materials, proper assembly instructions, high-quality tiltturn windows and doors, etc. We take responsibility for our production and consult on the maintenance of our houses years a er they've been nished. It gives us the valuable experience we need to continue improving our products. How do you see the timber construction industry in Estonia in general? We've noticed a trend toward manufacturing companies becoming service providers. For us this is very natural, as there's always a speci c client behind each building we construct. What are the advantages of being based in Estonia? It used to be the location proximity to the Estonian forest as a source of raw material. Nowadays about half of the wood comes from other places such as Russia, Belarus, Latvia, Sweden and Finland. The real reason to be here is the skills base: our sector is thriving because of Estonia's long traditions in wooden houses and knowledgeable people. What are the challenges for export? Practically all of our production is exported to Germany, Holland and Norway. Production of custom-made houses is seasonal, and because there's no standardization we can't just build up stocks over the winter for storage until the high season.

Garden house in Germany by Varola, 2015. Production and engineering by Varola. Photo ©Varola > Sauna in Holland by Varola, 2016. Production and engineering by Varola. Photo ©Varola Garden house in Germany by Varola, 2016. Production and engineering by Varola. Photo ©Varola

VIPSON PROJEKT

How did your enterprise begin? Have your ambitions changed since then? Vipson Projekt Taavi Tuvike: Our experience in log house construction dates back to 1999. Vipson Projekt was created in 2002. We operate in Võru County, in South Estonia. We've preferred hand-cra ed over machined production. It is an environmentally friendly construction method: wood is a natural renewable material and we have no need for a large factory.

HANDCRAFTED LOG HOUSES

What is the key to your success? Our down-to-earth way of thinking. We've avoided rapid expansion or over-investment, but moved forward step by step.

Taavi Tuvike Board Member CEO

Company name Year of foundation Category Turnover Other products/ activities Membership Markets

Vipson Projekt OÜ 2002 Residential buildings, saunas, summer houses 0,3 MEUR (2017) Wooden furniture, rewood Estonian Woodhouse Association Estonian Wooden Houses Cluster Estonia, Scandinavia, Germany

How do you see the future of your enterprise? Our market used to be largely in Estonia, but today we are more active in Norway. Trust is built by being in the market over a long time. We aim to stay reasonably small, to be able to focus on hand-cra ed production that cannot be done by machines, so we need to be able to sustain the team despite market uctuations. How do you see the timber construction industry in Estonia in general? We need a proper forest management strategy in Estonia capable of supporting our sector in a more straightforward way: the state forests that have been properly managed o er us quality material, whereas some of the private forests have been ruined due to mismanagement. We should avoid over-regulation, introducing legislation that can foster entrepreneurship. What are the advantages of being based in Estonia? The wood we use comes from Estonia, but also from Scandinavia and other places. Our main advantage is our general educational and cultural background: our work ethic is high, our production is precise the feedback we receive has been very positive. We've had to train the workers ourselves, and our skilled team is a priceless asset.

www.vipson.ee info@vipson.ee +372 520 8041 Jeedasküla village, Võru 65212 Võru county

What are the challenges for export? Diversi cation of markets helps to spread risk, so we have tried to sell hand-cra ed log dwellings in Germany as well as exporting to Scandinavia. It's di cult for log houses to meet the energy e ciency standards regarding regulations for living spaces, although the criteria are somewhat more exible for recreation homes. German clients are also more demanding about the engineering part of the project documentation, but our Estonian engineers are o en overwhelmed with work so it can take a long time to receive the construction drawings from them, if they're willing to prepare them at all.

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Outdoor classroom in Estonia by Vipson Projekt, 2015. Architect Mirko Moppel; engineer Tõnu Jõgi. Photo ©Maris Tomba Handcra ed log pavilion by Vipson Projekt, 2016. Architect Tanel Breede; engineer Taavi Tuvike. Photo ©Sven-Olof Englund / XL-Studios Handcra ed log house in Valga county, Estonia, 2016. Architect Tarmo Maiste; engineer Taavi Tuvike. Photo ©Sven-Olof Englund / XL-Studios

ESTONIAN WOODHOUSE ASSOCIATION

THE CUTTING EDGE:

ESTONIAN WOODEN HOUSES CLUSTER

Estonia s Leading Timber Construction Enterprises

The Cutting Edge: Estonia's Leading Timber Construction Enterprises

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Estonian Timber Building Sector