”We receive international visitors every week – from Japan, Canada, Switzerland and beyond. It's not just the fact that we're building an entire district in timber that draws people here; it's also how we, as a private developer, are creating a mixed-use urban district with culture, housing, retail and offices. Everything you need should be within a five-minute walk,” says Håkan Hyllengren, Business Developer at Atrium Ljungberg.
Wood City is rising on the former Atlas Copco industrial site, where the company once developed machinery for a growing world. Today, the innovation happening in Sickla is about how to build a thriving, sustainable city – one that is attractive to residents, workers and visitors alike. The sheer ambition is reflected in the giant scale model of Wood City on display at Atrium Ljungberg's Sickla office.
In total, 25 blocks and more than 30 buildings will be constructed in timber. The first residential buildings at Nobelberget are due for occupancy by the end of 2025.
“When you see the model, you grasp the scale. This isn't just a few timber buildings – it's a city in its own right, a place designed to thrive for at least a hundred years,” says Håkan Hyllengren.
The initiative stems from a board decision in 2022, when Atrium Ljungberg adopted new sustainability targets: to halve the carbon footprint of new construction from 2025, reduce energy consumption and increase the reuse of materials.
“We hadn't built in timber before, but we saw it as the fastest and most powerful way to reach our goals. That's where the idea for Wood City was born,” says Håkan Hyllengren.
Working with the best
Timber is a key tool for halving the climate impact – but it is also becoming part of Sickla's identity. Here, timber will meet brick, glass and greenery in a mixed-use district that has evolved over several decades. From industry to retail, and now to timber city – a new growth ring for the area.
“Sickla has grown organically over a long time and has a distinctive patchwork character. We want to build on that. The old industrial buildings will remain as a reminder of the site's history, but also to create contrast with the new timber architecture.”
Most of the buildings will be between five and eight storeys – a height well suited to timber-frame construction. Projects are delivered through multiple prime contracts, with Atrium Ljungberg assembling teams of architects, structural engineers and contractors for each phase. White Arkitekter, Liljewall, TL Bygg, Setra and Stora Enso are among those involved.
“We try to select the best in the industry for each phase. It drives innovation and means we can learn from every building,” says Håkan Hyllengren.
Timber also enables smoother logistics: fewer heavy transports, shorter construction times and quieter building sites. That said, some buildings will require hybrid solutions.
“We're going to build a 16-storey residential block above the metro line. A hybrid structural frame will most likely be the best solution there, combining timber with concrete and steel.”
A 25-storey innovation hub
The new timber quarters will foster a more pleasant urban environment: car parking at the retail centre will move underground, making way for more pedestrian streets and greenery. Below ground, surplus heat will be stored in the bedrock through geothermal energy storage. Offices, homes and shops will also be able to share energy, heating and cooling with one another.
“Instead of every building solving its own energy supply, we're creating a system where buildings help each other. That allows us to cut energy consumption significantly.”
Sickla Central – a 25-storey tower completed in September this year – is also set to become an innovation hub for sustainable construction. The new landmark brings together companies to develop the solutions of the future.
“By gathering expertise and companies at the forefront of sustainable construction under one roof, we hope that exchange and collaboration can accelerate the development of new, innovative solutions,” says Håkan Hyllengren.
Stockholm Wood City
In the Sickla district, Atrium Ljungberg is developing the world's largest urban quarter built in timber. Ground was broken in 2024, and the project encompasses 250,000 square metres across 25 blocks and more than 30 buildings with timber frames. Plans include 7,000 workplaces and 2,000 homes, along with retail, services and cultural facilities.
The project demonstrates how timber can be deployed in large-scale urban development to reduce the climate impact of new construction.
Atrium Ljungberg has owned the land since 1998 and is driving the project in collaboration with a range of partners. The area will benefit from strong public transport links via the Tvärbanan light rail, the Saltsjöbanan commuter line and a forthcoming new metro line.
Wood City is scheduled for completion in 2033.
Text: Gustav Schön Photo: Atrium Ljungberg
