Honkarakenne and Onwood partner on log homes for Central Europe

Finnish firms Honkarakenne and Onwood have launched a strategic partnership to produce log homes, with 100 units already sold to Central Europe, Yle reports.

The collaboration sees Honkarakenne design and manufacture the components at its Karstula plant, while Onwood assembles them into prefabricated elements at its own facilities. The first joint project, valued at €16.3 million, will deliver the homes this year and next.

Honkarakenne supplies nearly all wooden parts, excluding foundations, including interior panelling, accounting for roughly one-third of the project’s value. The homes are largely pre-built indoors, with only final assembly and finishing done on-site.

The units are destined for the hospitality sector, marking Onwood’s expansion from public construction into accommodation. Onwood CEO Miikka Vainio called Honkarakenne “the world’s most skilled log construction company.”

Markus Saarelainen, Honkarakenne’s B2B sales director, said new negotiations between the firms are already underway, proving that high-value wood product design and manufacturing can remain competitive in Finland.