Highlights

  • Eco Buildings Group has signed a €420 million agreement to supply 20,000 modular homes in Chile over seven years.
  • The first tranche of 607 homes is fully funded with a 50% deposit of €12.75 million, with delivery expected during 2026.
  • Eco will establish a new manufacturing line in Chile by Q2 2026 to support large-scale production and delivery.

Eco Buildings Group PLC (LSE:ECOB), the UK-listed modular housing company, has announced the signing of a significant agreement with the Chilean authorities to deliver 20,000 modular homes as part of the government’s flagship social housing initiative. The agreement, valued at approximately €420 million (USD 454 million), spans seven years and represents the company’s transition from certification to full-scale commercial operations in Latin America.

Certification and Project Background

Eco Buildings began the approval process in Chile in July 2023. The company has now completed all required testing and achieved full certification, joining a select group of approved construction systems authorised for national housing programmes.

In March 2025, the company constructed demonstration homes in Melipilla and Valparaíso, near Santiago, which were visited by senior government officials, parliamentarians, and municipal leaders. Following these assessments, the Chilean Government allocated the first tranche of 607 homes to beneficiary families.

Delivery of this tranche is scheduled for 2026 and is fully costed with a 50% upfront payment of €12.75 million under Chile’s structured government payment model. Eco expects to scale its delivery capacity to up to 5,000 homes per year by the seventh year of the agreement.

Manufacturing Expansion and Local Operations

To efficiently meet production and delivery requirements, Eco Buildings will establish a new manufacturing line in Chile, integrating its automated Glass Fibre Reinforced Gypsum (GFRG) panel technology. Installation of the new facility is planned for the second quarter of 2026.

The Chilean Government’s social housing programme aims to deliver 250,000 homes nationwide. With full certification achieved and commercial rollout underway, Eco Buildings is positioned to play a key role in addressing Chile’s housing needs while also expanding its footprint across other Latin American markets.

Structured Payment Framework and Financial Terms

Under this framework, Eco Buildings is entitled to receive up to 50% advance payment for each contracted lot, with the remaining balance payable upon completion and verification by the national housing authority, SERVIU. Each of the multiple lots forming the 20,000-home programme will be contracted and funded individually, providing predictable cash flows and minimising working capital exposure.

Outlook and Strategic Expansion

Eco Buildings’ participation in Chile’s social housing programme establishes a strong foundation for further expansion across Latin America. The company’s modular construction technology and automated production methods are aligned with regional housing initiatives seeking scalable, cost-efficient, and sustainable solutions.

With certification complete, funding mechanisms secured, and operations scheduled to commence in 2026, Eco Buildings is preparing for a multi-year growth phase supported by government-backed projects in Chile and beyond.