Koskisen as an investment

Why to invest in Koskisen?

An excellent combination of excellence, technology and experience to use wood and forests correctly.

1. Themes related to sustainability grow markets essential for Koskisen

Green construction, and related regulation are the main drivers for Koskisen’s sawn timber products, as approximately 60 percent of Koskisen’s sawn timber was used in construction related applications in 2021. Of Koskisen’s chipboard products, approximately 49 percent were used in furniture applications in 2021, for which wood is a sustainable, durable, and increasingly trendy raw material.

2. Sustainability addressed at all stages of Koskisen’s production

Wood products are a good alternative for materials in multiple applications due to their positive carbon sink, durability, and renewability. Koskisen tracks the origin of the wood it procures and uses a wood origin chain of custody system to ensure that all wood material is acquired legally and ethically from trustworthy sources. Koskisen’s concrete actions include industry best practices, such as favoring mixed forests over single species forests, regeneration felling, leaving high stumps, protecting swamp border areas, and sparing of spinnery, rotten wood and low yield areas.

Sustainability report (.pdf)

3. Frontrunner in integrated mechanical wood processing

Koskisen’s efficient and integrated operating model enables at optimized use of wood as a raw material at its production facilities, and Koskisen’s Wood Procurement function enables the availability of high-quality wood raw material. Koskisen’s whole value chain from harvesting to end products is designed around synergistic material flows and an agile operating model allowing utilization of raw material from diverse sources. For example, Koskisen utilizes woodchip and sawdust from woodworking operations in its chipboard production. The material efficiency achieved in production is expected to rise as Koskisen starts using its new Järvelä unit, where production is expected to begin in stages during 2023 and 2024.

4. High quality tailor made products of finnish wood

Koskisen believes, that its products and services are known for their high quality, which allows Koskisen to price its products, especially panel products, higher than average export prices in Finland. Koskisen’s integrated production model enables Koskisen to offer tailor made products and service concept to customers. Koskisen is able to produce smaller batches of end products, which can be customized according to the needs of the customer, and to offer a wide product assortment and range of products as well as a high level of services to its customers.

5. Future investments create a basis for improving financial performance further

Koskisen has identified multiple potential targets for future investments that would be aimed at both growth in terms of revenue and increased efficiency that it expects to lead to improved profitability. The first such investment is the new Järvelä unit. Other tangible growth paths identified by Koskisen include smaller efficiency improving investments at Koskisen’s production facilities, developing new and existing products towards even more sustainable solutions, as well as potential M&A opportunities, which would also be aimed at improving Koskisen’s ability to source raw materials in the future.

6. Management with broad experience from the industry

Koskisen has a well networked management with long experience in the industry and relevant parallel industries, such as materials technology and wood construction. Koskisen has recently made a new executive board appointment of a sustainability and communications. Koskisen’s management is further supported by the Board of Directors of the Company with long experience in Koskisen and other large companies in the industry.