Sawn timber production started at Koskisen’s new wood processing unit

Koskisen Corporation press release, 4 July 2023, at 10:00 a.m. EEST

The sawn timber production of the wood products company Koskisen's new processing unit started as planned at the beginning of July. Production of the new unit will be ramped up gradually during the second half of the year, and full operating capacity will be reached in early 2024. The new unit will significantly improve the productivity of the Sawn Timber Industry starting next year.

"The new production line will increase sawmilling productivity by up to 40 per cent and enable the use of smaller log diameter. This way, we will be able to serve our customers with new products and the wood raw material will be used even more precisely in end products that bind carbon for a long time," says Jukka Pahta, CEO of Koskisen.

Sawn Timber Industry segment's EBITDA will improve by approximately EUR 8 million annually once full production capacity has been reached. The EBITDA improvement consists of, among other things, higher sales volumes, increased side streams, as well as improved material efficiency and quality yield. The unit's significantly higher degree of automation and more efficient logistics will also improve profitability.

The total investment in the new unit is approximately EUR 50 million in 2021–2024.

The latest world-class technology

In the first phase of the investment, the unit's production capacity will increase from the current 300,000 cubic metres to 400,000 cubic metres. In the second phase, it is possible to increase volumes up to 500,000 cubic metres. In addition to increasing volumes, product quality is also improving.

"The new wood processing unit represents the latest world-class technology and efficiency, which is also in line with our high-quality driven strategy. We have succeeded in the project in accordance with the set goals on schedule and budget, which in part says a lot about our expertise and capability. Thanks for this go to both our own project organization and external contractors," says Tommi Sneck, Director, Sawn Timber Industry.

Koskisen manufactures high-quality standard sawn timber as well as dimensioned and strength-graded sawn timber from spruce and pine. Koskisen further processes approximately 40 per cent of the sawn timber it produces, mainly by planing and, to a lesser extent, painting. A significant part of the sawn timber and processed products is sold to markets outside Finland, especially Japan.

Additional information:
Sanna Väisänen, Director, Sustainability and Communications, Koskisen Corporation
Tel. +358 20 553 4563

Koskisen is an international wood processing specialist with more than a century of experience and known for its agility and ability to listen to the customer. We utilise our valuable wood raw material as thoroughly as possible, up to the last particle of sawdust. At the same time, we bring the best carbon narrative to life: We manufacture high-quality and sustainable products that store carbon for decades. The Group’s revenue in 2022 was EUR 318 million. Read more: koskisen.com