Finnish forest industry sees investments on the rise

In the first quarter of the year, the Finnish forest industry exports and production showed signs of recovery, according to the Finnish Forest Industries Federation (FFIF). Also, new investments were announced.

“UPM’s announcement regarding an investment at its Kymi pulp mill started off a series of investment news. Metsä Group’s Äänekoski investment and Stora Enso’s Varkaus investment, both announced in April, confirm that the sector has a strong desire to revitalise itself and to grow as well as strengthen its position in the bio-economy market,” says Director General of the Finnish Forest Industries Federation, Timo Jaatinen.

The Finnish Forest Industries Federation’s member companies bought 8.5 million cubic metres of timber from private forests in January-March. This is 25% more than in the corresponding period in 2013. Log and pulpwood procurement volumes increased to 3.9 million and 4.3 million cubic metres respectively. In stumpage prices there were no major changes.

Finland's forest industry’s development and the realisation of its investments require sufficient, steady and cost competitive timber availability in the long-term, says FFIF.

Demand for Finnish wood products showed signs of recovery in some European countries while the strong demand seen in Asia last year tailed off. Domestic demand was very low due to the low level of residential construction.

Finland's wood products production in the first quarter of 2014 totalled about 2.7 million cubic metres, which is five per cent higher than last year. Plywood production amounted to approximately 310,000 cubic metres, which is 15 per cent more than in January-March 2013. Export deliveries in January-February in both product segments were higher than in the previous year.

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