Koskisen announced on Friday that it will launch the second phase of its Panel Industry investment program. The investment is a continuation of the company's previously announced three-year investment program, which aims to increase plywood production capacity and improve productivity. The news was expected, and the size of the second phase of the investment program is also roughly in line with our expectations.

Investment program proceeds to second phase
Koskisen is launching the second phase of its Panel Industry investment program, valued at roughly 7 MEUR. The investments are aimed at developing veneer further processing, and they will replace and modernize outdated technology in areas such as veneer splicing and hot pressing. The investments are planned to be carried out in connection with the summer shutdown in July 2026.

The company also announced that the first phase of the investment program was completed at the end of 2025. The first phase of investments was valued at approximately 12 MEUR and focused on log handling and process automation. We previously commented on the launch of the investment program here. The goal of the investment program, spanning 2025–2027, is to increase plywood production capacity from the current 65,000 cubic meters to 85,000 cubic meters.

The scale of the second phase was broadly in line with our expectations
The investment decision did not come as a surprise, as Koskisen has communicated that the focus of investments is shifting from the Sawn Timber Industry to the Panel Industry, and the Panel Industry's investment program was communicated from the outset to be three years long. We have previously estimated the total investment program to be around 25–35 MEUR, so the now-announced 7 MEUR installment fits well within this scope, together with the 12 MEUR first phase already completed.

We believe the investment is justified, as the European birch plywood market has experienced a supply deficit since Russian imports ceased. Thus, there should, in principle, be demand for Koskisen's additional capacity, even though the weak European economic situation over the past year has also limited the demand for birch plywood. The increase in capacity has also been partly enabled by the higher volume of wood procurement due to the growth of the Sawn Timber Industry (including investments in Järvelä and the acquisition of Iisveden Metsä Oy). In addition, investing in automation and productivity is important for maintaining competitiveness and improving cost-efficiency.

We have already taken into account the progress of the investment program in our forecasts
We have already accounted for the Panel Industry's investment program, the volume growth it enables, and the cash flow effects of the investments in our 2026–2027 forecasts. Therefore, additional information on the second phase of the program does not cause immediate changes to our estimates. We expect the investments to support the Panel Industry's revenue growth and profitability improvement in the coming years, as the new capacity is gradually sold to the market and efficiency benefits are realized.

Source: inderes.dk