Sustainable and health-promoting construction and housing
Dalarna offers a scalable and investable platform for sustainable and health-promoting construction and housing. The region combines vast forest resources, high-quality timber and a long tradition of wood construction with advanced industrialised building systems, energy-efficient design and circular material flows. This positions Dalarna well to meet growing European demand for low-carbon, climate-adapted buildings.
As a leading region within the forest-based bioeconomy, Dalarna plays a critical role in developing sustainable and innovative products for housing, industrial construction, furniture, packaging and paper. Traditional red-painted wooden houses remain a strong symbol of the region, now complemented by modern large-scale wooden structures such as data centres and multi-storey buildings. Close collaboration between industry, academia and public actors continues to advance circular and resource-efficient wood construction.
Industrial capacity and market reach
Dalarna is home to several prominent companies supplying engineered timber products, components and turnkey building solutions. Key actors include Setra Group, Byggpartner, Dalahusgruppen and Tomoku Hus. Together, they cover the full value chain – from refined forest raw materials and prefabricated components to complete residential and commercial buildings.
Setra, one of Sweden’s largest wood industry companies, transforms forest raw materials into climate-friendly, high-value products such as glulam, cross-laminated timber (CLT), planed wood and building components for global markets. Tomoku Hus AB is one of Sweden’s largest manufacturers of wooden house components, specialising in wall panels, windows and patio doors, combining Swedish quality with Japanese production efficiency. This industrial base enables scalable production aligned with international demand.
Demonstrated innovation and circularity
A leading example of innovation and collaboration is the new Dalarna University campus in Borlänge. Sustainability and reuse were guiding principles throughout the project. The existing concrete structure from 1967 was retained, significantly reducing climate impact, while a climate-adapted timber façade was designed to be maintenance-free for 30 years. Approximately 1,700 interior items were reused and refurbished, demonstrating large-scale circular solutions in practice.
Research and future competitiveness
Future competitiveness is reinforced by strong research and innovation capabilities. At Dalarna University, the Sustainable Energy Research Center (SERC) and the Department of Energy and Built Environment conduct applied research linking buildings with energy systems, circular economy models and health impacts. The focus on flexible energy systems and sustainable urban development strengthens the region’s ability to deliver integrated, future-proof building solutions. Supportive planning processes, test environments and coordinated regional collaboration create stable and predictable conditions for long-term investments. Together, Dalarna’s natural resources, industrial capacity and research ecosystem form a robust platform for scalable, sustainable and health-promoting construction and housing.