Keitele’s sawmill in Northern Savonia is undertaking an investment programme worth around EUR 40 million to increase annual production capacity to about 600,000 cubic metres of sawn timber. Photo: Keitele Group.

Finland’s sawmill industry has invested heavily in new and modernised production facilities. The sector is now warning that future timber availability could become a limiting factor when the expanded capacity is fully utilised. Wood supply is emerging as a key issue ahead of Finland’s next parliamentary election.

The Finnish Sawmills Association, Sahateollisuus ry, launched its election tour on 6 October at Keitele’s sawmill in Northern Savonia, according to Maaseudun Tulevaisuus.

The campaign comes after several years of major investment across the sector. Finland’s sawmills produced 11.7 million cubic metres of sawn timber in 2025, up 7 per cent from 2024. Production had amounted to 10.9 million cubic metres in 2024 and 10.4 million cubic metres in 2023.

However, conditions weakened during 2026. Output in the first half of the year fell to 6.1 million cubic metres, down 3 per cent year on year.

Exports also declined. Between January and May 2026, Finnish sawmills exported 3.3 million cubic metres of sawn timber, 6 per cent less than a year earlier. Export value fell 5 per cent to EUR 870 million.

Around 80 per cent of Finnish sawmill production is exported, making the industry particularly sensitive to both raw-material prices and transport costs.

Keitele is one of the clearest examples of the current expansion. The company is carrying out an investment programme worth around EUR 40 million to increase annual production capacity at its sawmill from about 420,000 to 600,000 cubic metres.

At the same time, annual log consumption is expected to rise to almost 1.3 million cubic metres.

Securing timber supply
Sahateollisuus argues that future policy decisions should therefore be assessed partly on how they affect regional timber availability.

The industry has warned that large-scale forest restoration and protection measures could reduce future harvesting opportunities. According to scenarios from the Natural Resources Institute Finland cited by the association, different restoration options could reduce annual harvesting potential by between 2 million and 15 million cubic metres.

This is particularly important for sawmills because each plant depends heavily on timber from its surrounding procurement area. A regional reduction in available logs can therefore quickly affect production levels and profitability.

Raw-material costs have also increased sharply
Over the past 15 years, the price of spruce sawlogs has risen by around 62 per cent, while export prices for sawn spruce have increased by only about 34 per cent.

For pine, sawlog prices have risen by roughly 57 per cent, while export prices for sawn pine have increased by only around 14 per cent.

The widening gap has added further pressure to sawmill margins.

Weaker domestic wood use
The sector is also calling for improved road infrastructure for timber transport, stronger measures to increase forest growth and policies aimed at boosting the use of wood in construction.

According to Sahateollisuus, wood consumption in Finnish construction has fallen from around 5 million cubic metres per year to approximately 2 million cubic metres.

Domestic sales of sawn timber currently amount to only about 2.2 million cubic metres annually.

The association is therefore calling for clearer government targets for timber construction and greater use of wood in public building projects.

Logistics is another significant cost factor, accounting for nearly 20 per cent of total sawmill costs, according to Sahateollisuus.

The industry’s message ahead of the election is that much of the investment has already been made. For those investments to deliver their full economic value, sawmills say Finland must ensure an adequate supply of domestic timber as well as long-term and predictable operating conditions.
 

Source: maaseuduntulevaisuus.fi