We use cookies to support your experience on our site. By continuing to use our site you agree to our use of cookies.
Read more

To have enough homes, our construction must be effective, reasonable and green.

Moelven faces the future with confidence

In 2015, Moelven improved underlying operations by NOK 50 million and achieved an operating profit of NOK 215 million. Revenues increased by nearly 10 percent to NOK 9 690 million.

Summing up, we can see that the company further increased its revenues and improved its operating profit in a year with a strong focus on internal improvement and restructuring. I am very pleased with this.

But the accounts for 2015 also include a loss of NOK 94 million on sales of fixed assets and cost overruns on projects. Therefore, the results of the company’s underlying operations are in fact better than the operating profit indicates.

In 2015, Moelven increased its gross operating margin (EBITDA) to 5.7 percent, compared to 5.6 percent in 2014. Return on capital employed (ROCE) improved to 7.4 percent, as against 6.8 percent in 2014.

Our improvement in 2015 is therefore satisfactory. The improvement and restructuring measures to achieve our long-term objectives are progressing according to plan.

Net interest-bearing debt declined by almost one quarter of a billion NOK from 2014 to 2015, while equity increased by NOK 165 million to NOK 1 757 million. Financially, we are stronger than we have been for a long time.

What are the future prospects for Moelven?

We face three important challenges in society that will all affect us.

The first is that Europe, and particularly Scandinavia, is faced with huge population growth, while the housing deficit grows year by year. Secondly, we see that strong urbanisation is the most obvious trend in living patterns in Scandinavia. Thirdly, the world is facing serious environmental challenges.

Such challenges are forcing society to change, including the construction industry and for us as an operator and supplier in the industry.

Moelven has been part of Scandinavian building traditions for generations. For nearly 120 years, Moelven has delivered products and services of benefit to society - with wood as our most important material. But we are also innovative. We closely follow developments in society and create new products and solutions.

For this reason, the company’s product and service portfolio is well suited to the future challenges facing society.

In 2015, Moelven developed a new, flexible housing concept that utilises the benefits of the modular system even better than before. It consists of functional and aesthetically pleasing apartments of various sizes on up to four floors. This concept is suitable for residential areas and suburbs around or near cities, which will see the greatest population growth.

The demand for time- and cost-effective building solutions in the segment of temporary modular buildings is growing very rapidly in Sweden, partly due to strong population growth. The Moelven ByggModul AB production unit in Säffle is meeting increased demand and is investing 72 million in robotic module production. With inspiration from the automotive industry, this will increase the production capacity of the unit by 80 percent.

The residential building called “Wood” in Bergen, which won the annual award for wood-based constructions in 2015, has 14 floors of wood, and is four floors higher than any other wooden building. “Wood” is a pilot project and an example of glulam solutions for sustainable tall buildings in urban areas.

Wood is absolutely the most environmentally-friendly building material available. It is renewable, local and durable. It is also flexible and robust - and allows for both customisation and mass production. That is why we continue to develop new products in wood. Moelven Wood’s new product Malm100, made of 100 percent ore pine, is one of a number of examples.

All this shows that Moelven has innovative capacity and thinks in new ways in an otherwise traditional industry. Good solutions, projects and products pave the way for a future-oriented industry.

To ensure our future competitiveness, it is therefore vital that we develop new wood-based products and solutions, that we have financial strength, that we develop our expertise in line with technological developments, and last but not least, that we have good road, rail and sea infrastructure.

As I see it, we are not only well on track to reach our target of 13 percent return on capital employed in 2018. It also appears likely that Moelven will represent good profit potential for its owners for many more years to come.

Morten Kristiansen


Moelven Industries ASA

Operating profit
mill. nok
Operating revenue
mill. nok


Main figures



Ingenious building bricks

Ingenious building bricks

Moelven's innovative new housing concept was soon a success in the market

In the winter of 2015, Moelven launched its new module-based housing ­concept– defined building bricks as modules that can be combined into an infinite number of different types of structure.

"We've had a good response in the market and a good contracting rate," says sales manager Tormod Kvisler of Moelven ByggModul AS.

The building blocks cannot be changed, but there is a lot of flexibility with regard to the façades and building design, as well as the usual options for kitchens, bathrooms, hardwood flooring, etc. As for all industrial buildings, important benefits are lower building costs and shorter building times, but the biggest change that Moelven has made is that the company is now a turnkey contractor.

"We've included the entire value chain, from planning to turnkey buildings," Kvisler emphasises.

Knowing the final cost

Thanks to the new housing concept, Moelven can deliver turnkey flat complexes with basement parking and balconies, and the final cost is fixed before the project starts. "We have standard modules for flats, and standard basement parking, of which we know the price, and generally the only variation will be the cost of the site. At a very early stage of the project's development, we can say what the project will cost to build," he says. The concept covers the market demand for flats in a given segment.

"Our modular concept meets the need for cost-effective three- to four-storey flat complexes."

First project in production

The first order came in the autumn of 2015, just six months after the housing concept was launched.

"This far exceeded expectations," the sales manager says.

Fjeldsetlia Park in Elverum is a housing project with 52 flats, with start-up at the factory in February 2016, and completion in the autumn. It takes around eight months from start-up of production at the factory until the first residents can move into their new flats. The project is the first with 12-metre modules and is being produced at Moelven ByggModul Hjellum, the module factory acquired by Moelven in the summer of 2015 to streamline its production of standardised, turnkey multi-storey flat complexes.

Increased competition

Moelven's concept for industrial housing construction has been well-received by project developers, including the OBOS housing conglomerate.

"We now have three major housing projects with OBOS," Kvisler confirms. He believes that the concept has increased Moelven's competitive power in relation to traditional contractors and module competitors in the Baltic countries.

If you measure the cost module for module, it's impossible to compete against the Baltic prices, since the hourly price is so much lower. But by becoming a turnkey contractor, we have become an attractive alternative for turnkey management of many contracts and suppliers. Now, developers can keep their hands in their pockets and watch the process, happy to know that the overall price is also lower. Our prices are where they should be and we're really pleased that we have had such a good response from our target markets."

Nine years without any injuries requiring absence

Nine years without any injuries requiring absence

Employees of Moelven Are do their utmost to ensure that everyone gets home safely from work each day.

It is now more than nine years since a Moelven Are employee last suffered an injury which led to absence.

"This ninth anniversary was celebrated with pizzas," says general manager Morten Tunby at the planing mill in Spydeberg, Østfold. He believes that one important factor behind this fine record is that the employees are adult, sensible people with longstanding experience, who also make sure they use the safety equipment available.

"Moelven Are is a place where people stay for many years, adapting their working speed to the risk involved. Injuries are often a consequence of a combination of speed and a lack of experience. Not least in situations where you just need to 'fix something' too quickly," says Tunby.

Whether you're on the way out of a vehicle, in the canteen, or in the workshop, it's important to think before you act, and to think of the consequences," he says.

Motivating measures

In 2014, all of Moelven's activities gained a safety noticeboard displaying the number of days since the last injury leading to absence. Moelven Are heads the statistics in the Moelven Group, and the board helps to increase motivation.

"There's no doubt that this type of transparency, as the figure rises day by day, is a strong motivating factor. Nobody wants to be the reason that we get knocked back to zero again," says Tunby, who relates that they are good at celebrating milestones.

"Now we're determined to celebrate 3,333 days, before the 10th anniversary next year," he says.

Intensified Group effort

Despite the efforts made over many years, the injury statistics are not positive for every company in the Moelven Group. The injury figures are still too high at many locations, and preventive safety work will be one of Moelven's key focus areas going forward.

There has been strong focus on HSE for many years, and even stronger efforts to improve the results began in 2015, when the Group introduced higher reporting requirements and minimum requirements of safety equipment, nominated HSE resource persons, and established a separate safety committee.

The goal is zero injuries

In some parts of the Group, the measures have yielded good results, while in others there is still a long way to go. Changing the safety culture is a long-term task, but Moelven insists that every injury can be prevented. This is a shared responsibility, and employees are encouraged to not only work safely themselves, but also watch out for their workmates' safety.

"The goal is zero injuries. We have also set some sub-goals for ourselves. Today, the H1 value (number of injuries leading to absence per million hours worked) is around 15. In 2016, the H1 value must be below 10, below 8 in 2017, and below 6 in 2018. Once we have achieved this, we will be on the way to reaching our goal," says Group CEO Morten Kristiansen.

Corporate social responsibility is part of our business philosophy

Corporate social responsibility is part of our business philosophy

Sustainability is one of our core values and also one of our key competitive advantages.

At Moelven, we base our activities on renewable resources, delivering products and services that people need. This ensures "green competitiveness", which in many ways characterises what Moelven is and what it stands for.

"We're fortunate that we're active in a sector that is on good terms with the environment. Yet we do not take this for granted, and at Moelven we are continuously focused on reducing our environmental impact. We cannot afford to lag behind in our strongest areas, neither in terms of the environment nor our reputation," says Kristin Vitsø Bjørnstad, HR and Communication Director.

Acting responsible across the board

Taking responsibility for the environment and contributing to the community in which we operate are obvious prerequisites – and a natural part of our day-to-day operations. "At Moelven, we seek to act responsibly in everything we say and do, because we believe this pays off, and because it's the right thing to do," says Bjørnstad, emphasising that Moelven's greatest contribution to society is to operate its activities on a responsible basis.

"We make sustainable use of raw materials. We enter into long-term agreements with suppliers, take care of our customers, have proper employment contracts for our employees, and work to ensure secure and predictable conditions. Our aim is to give people opportunities, so that our employees have a chance to thrive and develop."

Local involvement

Many of Moelven's more than 50 companies are cornerstones of their local communities, which imposes certain obligations:

"The local community also relies on us to operate well, earn profits and conduct ourselves responsibly. The basis is our values and vision, but one of our most important means of achieving this is openness in everything we do. This philosophy is probably the very most important guarantee of our responsible business operations," she points out. In these local communities, Moelven contributes by sponsoring activities for which there is strong support in the immediate environment.

"In these areas, we wish to give children and young people in particular opportunities and scope to develop within sport and culture. One aspect of our corporate social responsibility is to contribute locally," says Bjørnstad.

Priority to children and young people

In Moelven's new sponsorship strategy, priority must be given to activities for the benefit of children and young people. An innovation in the past year was that the Moelven Group donated a substantial amount to Save the Children, instead of a gift to each employee. This donation of NOK 350,000 was made at the initiative of Group CEO Morten Kristiansen, as an amount of around NOK 100 per employee to a charitable organisation. 
"At Moelven we have had a tradition to give everyone a Christmas present, but today I'm sure that not many of our employees in Norway, Sweden and Denmark actually need these items. By making a large donation to Save the Children, we can join forces in doing something for other people that really makes a difference," he says. 

Save the Children works to protect children's rights in 120 countries, as the world's leading organisation to help children.

"The money will be spent on schooling and education, which are vital to ensuring a good future for children and young people. We believe that this Christmas donation had the support of every employee," says Kristiansen.

The Company

Moelven is one of Scandinavia's leading suppliers of products and services for the construction industry, and comprises 43 production units and 32 offices for sales, service and installation. The Moelven Group's head office is in Moelv, Norway.

Read more about Moelven