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% 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 Euro 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 Euro 50 million in 2021–2024.
In the first phase of the investment, the unit's production capacity will increase from the current 300,000 m3 to 400,000 m3. In the second phase, it is possible to increase volumes up to 500,000 m3. In addition to increasing volumes, product quality is also improving.
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% 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.
