The Swedish owner of the Pervanovo Invest AB flooring factory is building a €200 million state-of-the-art flooring factory in the town of Ogulin, 100 km southwest of Zagreb, and, once it becomes operational, it will the world's largest wooden flooring factory, the Bjelin Croatia company said on Tuesday.

The new factory – Ogulin 2 – is being built next to the existing parquet flooring factory Ogulin 1 and will have a production capacity of more than 20 million square metres of flooring per year. The total annual output at Viken, Sweden and Ogulin 2 will be 30 million square metres.

The new factory is being built on a 330,000 square metre site located near the Zagreb-Split motorway and its total floor area is 100,000 square metres. The investment in land, buildings, installations and machinery is estimated at €200 million in capital expenditure, to be financed mostly through equity.

“The investment will give Bjelin a world-leading position and will result in a direct increase in the workforce in Croatia of 600 new employees, boosting the workforce from 800 to 1,400 employees. The initiative will also create new jobs in the production units in the towns of Bjelovar and Otok, where we will increase production of top veneer and process waste wood for production in Ogulin 2,” said Stjepan Vojnic, CEO of Bjelin Croatia.