Malaysian-Made Swedish Modules Headed to UK—An Approach Worth Watching in Australia

Swedish modular construction company SIBS has signed its first contract in the United Kingdom, agreeing to deliver 245 high-quality apartments for a residential project in Basildon, Essex. Valued at £28 million (AUD $53.5 million), the deal highlights the growing ability of modular construction to cross borders—offering a timely example for Australia as it continues to explore faster and more cost-effective housing solutions. (main image: SIBS modular development, Marielundshöjden in Marielund, Sweden—239 build-to-rent apartments. All images courtesy of SIBS.)

The contract, secured by SIBS’ Malaysian subsidiary, SIBS Sdn Bhd, is with UK and Ireland-based developer Donard Real Estate. Module production is scheduled to begin in late 2025, pending approvals from the UK Building Safety Regulator under its Gateway 2 process.

“This project is a major step forward in our strategy to expand to new markets,” said Tuomas Oijala, Deputy CEO of SIBS Group. “We strongly believe that the high quality and cost-effective delivery of our modular system will be key in addressing the housing shortage in the UK. This order provides a strong foundation for future growth in the UK and Ireland.”

The apartments will be manufactured at SIBS’ advanced factories in Malaysia and shipped to the UK for installation. Located just 30 minutes from London, Basildon has been identified as a key growth area, benefiting from ongoing regeneration efforts and transport connectivity.

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Global Production Driving Local Outcomes

This project adds to SIBS’ expanding portfolio of modular housing projects delivered from its Penang-based factories. Founded in Sweden, the company operates two production facilities in Malaysia, with a combined annual capacity of around 6,000 apartments.

SIBS’ patented ‘Parametric Modularisation’ system allows for approximately 90 per cent of construction work to be completed offsite—including kitchens, bathrooms, lift shafts and stairwells—before modules are shipped to the final destination.

The system offers significant benefits in terms of speed and cost, cutting project timelines by up to 40 per cent and reducing construction costs by as much as 30 per cent compared with conventional building methods. Its flexibility also allows it to be adapted for various building codes, climates and project types.

Beyond Europe, SIBS has delivered thousands of apartments to Saudi Arabia’s NEOM development, demonstrating its capacity to manage complex modular projects at scale.

A Considered Approach to Modular Potential

The Basildon project underlines how modular construction can deliver high-quality housing efficiently within challenging regulatory environments and high-cost markets. It also reinforces the value of combining advanced manufacturing with strong local partnerships and well-coordinated project delivery.

For Australia, this project offers a clear reminder that with the right approach—combining advanced manufacturing, strong logistics and adaptable design—modular construction can unlock new opportunities across a range of housing developments.

“This agreement brings one of the world’s most advanced modular systems to the UK and Ireland,” said Steven Flannery, CEO of Donard Real Estate. “At a time when the UK urgently needs faster, more sustainable and more cost-effective housing solutions, the SIBS system delivers high-quality homes at pace.”

SIBS’ continued expansion across Europe, the Middle East and Asia points to the growing role modular construction can play in solving housing shortages globally—demonstrating that with the right model, high-quality homes can be delivered across borders.

See: SIBS