XLam Announces New Business Model for New Zealand CLT Supply

XLam has today announced a new business model, which will usher in a more commercially competitive and sustainable way for the company to supply Cross Laminated Timber (CLT) to the market.

As demand for off-site fabrication, mass timber construction and (in particular) CLT continues to grow, so too does the XLam business, with a focus on improved customer solutions and increased manufacturing utilisation.

This announcement follows an extensive business review of current operations. The existing highly manual, capacity-constrained operation in Nelson has been confirmed to be commercially unsustainable for future CLT manufacture.

CEO Shane Robertson confirmed a review and consultation has been underway for a number of weeks, and he has personally consulted with all the Nelson plant employees and key stakeholders throughout that period.

“Throughout this process, we committed to providing a decision to employees and key stakeholders today. I can confirm a decision has been made to scale up the New Zealand supply of CLT from XLam’s new automated plant in Australia while progressively bringing the existing manual Nelson operation to a close over the next few months.

“The updated business model includes the establishment of a new warehousing and distribution operation in the Waikato region, as well as new office facilities in Nelson to continue to service our New Zealand customers today and into the future.

“While on the one hand we are delivering positive news for our New Zealand customers and the construction sector, we have also made difficult decisions that impact our people. “As such, we have committed to guaranteeing work at the existing Nelson operation for all 37 affected employees until at least July 2019. Emerging opportunities in both New Zealand and Australia are being offered to current employees in the first instance, with a number of confirmed deployments already in place. We are looking to relocate at least five people.

“We remain committed to fast-tracking the Certificate III in Competitive Systems and Practices so employees complete this qualification that they have been working hard to achieve.

“We also value the ongoing support of local stakeholders including Nelson Regional Development Agency, Chamber of Commerce and The Mayor’s Office, as well as WINZ and other government agencies, to ensure that staff welfare is paramount.”

2 XLam’s existing New Zealand-based Specification and Design services, along with its Commercial and Construction services and personnel, will continue to support clients. These services will expand further as demand for off-site fabrication, mass timber construction and, in particular, CLT continues to grow in New Zealand.

As part of XLam’s customer service model specific to New Zealand, the new local warehousing facility and supporting offices will provide improved efficiencies, logistics, project delivery and support functions while ensuring commercially sustainable solutions are provided for years to come.

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