Monday, June 16, 2025
The Port of Portland has granted a long-term ground lease to ZAUGG Timber Solutions (ZTS) for the construction and operation of a new mass timber modular factory at the Port’s Mass Timber and Housing Innovation Campus, located at Terminal 2. As a key anchor tenant at the campus, ZTS will play a pivotal role in the transformation of a former marine terminal in Portland’s Northwest industrial area into a thriving manufacturing hub. This development will not only bolster Oregon’s mass timber industry but also create new jobs, foster small-business growth, and contribute to addressing the region’s housing shortage.
“Our partnership with ZTS marks a major leap forward in developing the Mass Timber and Housing Innovation Campus at T2,” said Kimberly Branam, Port of Portland Chief Trade and Economic Development Officer. “Their new manufacturing facility will boost our region’s economy by promoting sustainable forestry practices, creating quality jobs, and increasing housing production.” Kimberly added further.
Modular homes offer several advantages over traditional construction, including faster build times, the ability to be manufactured year-round, and reduced waste. Mass timber buildings, made from layered and bonded wood, consume less energy and store more carbon than concrete or steel. Additionally, they can be sustainably and cost-effectively sourced, contributing to forest health and resiliency.
The new 100,000-square-foot manufacturing facility is set to open in early 2028. However, ZTS plans to start producing mass timber modular housing units, industrial and commercial buildings, and other prefabricated mass timber components as early as 2026, in an interim facility located in a renovated warehouse at T2.
ZTS, the North American affiliate of the ZAUGG group, has been manufacturing prefabricated buildings since 1936. This third-generation, family-owned Swiss company made its mark in the U.S. in 2020 by building the first modular multifamily mass timber prototype in the country. The new factory at T2 will be one of the first in the United States to produce mass timber modular and prefabricated housing units and commercial buildings on such a large scale.
ZTS is actively collaborating with Pacific Northwest tribes and local businesses. The company has a long-standing partnership with the Confederated Tribes and Bands of the Yakama Nation, which involves joint training, prototyping, and manufacturing initiatives. To complete its prefabricated structures, ZTS will rely on multiple suppliers of cross-laminated timber (CLT) and glulam and looks forward to working closely with local manufacturers as their facilities become operational.
Once finished, the 39-acre campus at T2 will serve as a hub for manufacturing, research and development, and business incubation. It will feature flexible industrial spaces and offices dedicated to housing innovation, mass timber, forestry, climate tech, and related industries. The campus will house the ZTS factory for producing modular housing and other mass timber structures, a new University of Oregon lab focused on R&D for mass timber products in housing construction, workforce training programs, and spaces designed to help small businesses grow and support the launch of new companies.
The Port is a member of the Oregon Mass Timber Coalition (OMTC), which was awarded a $41.4 million grant from the U.S. Economic Development Administration in 2022 to create a comprehensive strategy for expanding mass timber use in the housing market. This grant allocated $10 million to the Port for campus infrastructure development, $14.6 million for the University of Oregon’s acoustics research lab at T2, and additional funding for OMTC projects across other areas of the state.
Image Courtesy: Woodworking Network
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