The HASSLACHER Group: The Capital Equipment Decision

Mass timber products included glued laminate timber and cross-laminated timber. These were valued-added goods made from softwood lumber that was resurfaced and glued together. Glued laminate timber, or glulam, was used in commercial construction in place of concrete or steel frames. Cross-laminated timber, or CLT, was multiple layers of planed lamellas glued together, and was used to form walls, floors, and ceilings. While regular timber products sold for about 200 euro per cubic meter, glued timber products could command prices between 500 and 1,000 euro per cubic meter depending on quality, strengths and engineering design. Hasslacher had intended to upgrade its plant located in Malaya Vishera, Russia, which was about 200 kilometres from St. Petersburg. The plan had been to double timber production to 200,000 m and to upgrade it to produce up to 50,000 m of glulam products per year for the Asian market. Christoph's options were to wait for the Russian and Ukrainian war to end and then to proceed with the upgrades, to buy a basic sawmill in Eastern Europe and upgrade it, to look for an acquisition in North America, or to sell the equipment. "We have to make a decision that will be best for the long-term even though we don't have all the information we need in front of us," remarked Christoph. "We have close relatives and long-standing employees working for us in Russia and Asian customers lined up for our glulam product. On the other hand, there is significant amount of uncertainty about the political situation. It's not an easy decision for us to make."

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