Modesto, California-based off-site construction manufacturer Entekra is being dissolved. A wind-down of operations is expected to be completed by the end of June as Entekra fulfills its final obligations to builders.
Entekra is a design, engineering, and manufacturing company that provides a Fully Integrated Off-Site Solution (FIOSS) for the residential and commercial markets. FIOSS leverages the integration and application of software, engineering, technology, and modern methods of construction. It opened a 200,000-square-foot manufacturing facility in Modesto that the company said had the capability of producing 3,000 houses per year.
In a statement to BUILDER, Louisiana Pacific Corp., the majority owner of Entekra, said the Entekra board of directors “has come to the difficult decision to cease operations and dissolve the company” after a careful consideration of strategic alternatives “that concluded without external investment interest.”
“Through its off-site approach to commercial and residential framing, Entekra has offered prefabricated panelized construction systems to Northern California builders since its founding in 2017,” LP wrote in its statement. “However, Entekra’s long-term success requires scalable operations through regional expansion and greater capacity, which necessitates increased capital investment.”
According to LP, all Entekra employees will be provided severance benefits based on their tenure and position, will be provided with health insurance coverage for two months after leaving the company, and will be offered job placement services at no charge.
LP emphasized that while the company invested in Entekra in 2018 and became a majority—not sole—owner in 2021, they are separate entities. LP said while it continues to believe off-site construction can transform the home building industry, the company sees “greater potential investing in its core businesses,” directing capital to fuel the growth of LP SmartSide Trim & Siding and LP Structural Solutions.
