2021
2022
METSÄ FIBRE CUSTOMER MAGAZINE
NEW WAYS TO USE WOOD GROWING CARBON STORAGES TRACEABILITY OF WOOD
Contents
TIMBER CUSTOMER MAGAZINE 2021–2022 | METSÄ FIBRE, PO BOX 30, 02020 METSÄ | WWW.METSAFIBRE.COM | PUBLISHER: METSÄ FIBRE | EDITOR-IN-CHIEF: EVA MARTIN | EDITORIAL BOARD: ARI HARMAALA, RAILI KOPONEN, MIKAEL LAGERBLOM, KUSTAA LAINE, TOM NICKULL, TUOMO NIEMI, TOMMI SAARNISTO, TIINA TASSI, VILLE VALIO, HARRI VERTANEN | PRODUCTION: HUBE HELSINKI | ACCOUNT DIRECTOR: SANNA LAAKKONEN | PRODUCERS: MARINA AHLBERG, MARKKU RIMPILÄINEN | LAYOUT: HUBE HELSINKI | COVER PHOTO: MIKKO TIKKA, FOTONOKKA | PRINTING PRESS: PUNAMUSTA OY | ISSN: 2736-8300 (PRINT), 2737-0933 (ONLINE) | THE MAGAZINE IS PUBLISHED IN FINNISH, ENGLISH, CHINESE AND FRENCH | ADDRESS SOURCE: METSÄ FIBRE’S CUSTOMER AND STAKEHOLDER REGISTER | IF YOU DO NOT WANT TO RECEIVE THE MAGAZINE, PLEASE SEND US AN EMAIL: METSAFIBRE.MARKETING@METSAGROUP.COM | COVER: METSÄBOARD PRIME FBB BRIGHT 210 G | INSIDE PAGES: GALERIEART MATT 150 G
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EDITORIAL Setting the benchmarks for sustainability in the sawmill industry PAGE 4
HOW WE SERVE YOU Sales organisation transitions to a regional operating model PAGES 66–67
WORLD OF TIMBER Positive feedback from sawn timber customers PAGES 5–6
WHY NORDIC TIMBER Slow growth creates durable sawn timber that is easy to work with PAGES 68–69
UPDATES FROM CEO A front runner in investments and development PAGE 7
OUR SAWMILLS Metsä Fibre is one of Europe’s largest sawn timber producers PAGE 70
MADE OF TIMBER A renaissance for wood in construction boosts demand PAGES 8–13
METSÄ FIBRE Metsä Fibre in numbers PAGE 71
GROWTH IN THE DEMAND FOR SAWN TIMBER, PAGES 26–29
FROM FOREST TO SAWMILL, PAGES 48–53
INNOVATIONS & INVESTMENTS New Rauma sawmill to produce 750,000 m 3 of sawn pine annually PAGES 14–17
SUSTAINABLE SOLUTIONS Fighting climate change by increasing wood in construction PAGES 18–19
VALUE CHAIN Nordic wood is a hot commodity in the UK’s DIY market PAGES 20–25
OUR CUSTOMER Danish Norto turns leftover timber scraps into interior design PAGES 36–39
OUR PARTNER Precise deliveries for the construction site at Kemi bioproduct mill PAGES 54–55
ACADEMICIAN MARKKU KULMALA – EXPERT ON ATMOSPHERIC AEROSOLS, PAGES 56–58
TIMBER MARKET Home-improvement pushes up sawn timber demand PAGES 26–29
HOW WE SERVE YOU Timber FOX index guarantees uniform delivery quality PAGES 40–41
INFLUENCER Markku Kulmala’s research creates opportunities to slow climate change PAGES 56–58
A NEW SAWMILL IS RISING IN RAUMA, PAGES 14–17
OUR CUSTOMER Mokbel al Khalaf SONS Co. Ltd. has a strong focus on Nordic timber PAGES 30–31
OUR OPERATIONS Metsä Svir sawmill celebrates a decade and a half of successful production PAGES 42–45
CARBON FOOTPRINT Fossil free production is on the horizon PAGE 59
HOW WE SERVE YOU Maritime Logistics Service Centre keeps deliveries on time PAGES 32–34
HOW IT WORKS Roadmap to a more sustainable future PAGES 46–47
REGIONAL FOCUS The wooden post and beam in traditional Japanese architecture PAGES 60–63
PERSPECTIVE Highest sustainability standards, every single day PAGE 35
SUSTAINABLE FORESTRY Tracing the origin of wood all the way back to the felling site PAGES 48–53
PROFESSIONAL Niko Öhman helps customers find the right sawn timber for the right use PAGES 64–65
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WELCOME
Benchmarks for sustainability For many years, we have built the capability for comprehensive integration of our supply chain. We take responsibility for the sawn timber’s journey from forest to home and track every step taken along the route. We want our supply chain to set the benchmark for responsibility in the sawmill industry. In this way, we can support the corporate responsibility of our customers.
We source wood only from responsibly managed forests, mostly from the over 100,000 Finnish forest owners who are members of Metsäliitto Cooperative, the parent company of Metsä Group. We also trace the wood’s origins carefully. Sawing is optimised to produce the best material efficiency. A high level of automation helps us achieve the best sawing results from each log, and our sawmill operations are almost fossil-free. The timber we deliver stores carbon for decades. In our business, sustainability is connected with product quality. Because we know precisely the origins, features, and quality of our raw material, we can refine it into timber products that match our customers’ needs. Very soon, we will also relay this data to our customers. The Nordic wood we source for our sawmills has grown in the cold climate of the northern hemisphere. It is tough, durable, and visually very appealing. In this issue of Timber magazine, we write about customers who convert our timber into beautiful materials for building and living.
I hope you enjoy the stories we have selected for you!
ARI HARMAALA Senior Vice President, Sales and Marketing
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World of timber
Positive feedback from sawn timber customers
Metsä Fibre’s customer satisfaction survey was once again conducted in the sales regions of Europe, Asia- Pacific (APAC) and the Middle East and Africa (MEA). According to the responses, our overall performance is good. Aspects regarded as positive are similar in all regions. “We would like to thank all our customers worldwide for their active participation. The feedback we have received will help us develop our operations in the right direction,” says Harri Vertanen , Vice President, Sales Asia. The unprecedented increase in demand caused by the pandemic and macro trends, coupled with logistical challenges, have created major problems both in Europe and globally. “Our delivery reliability has suffered but has now been raised to the top of our agenda. Fortunately, quality and collaboration are still seen as our strengths. It will be
good to continue building on this in the future,” says Mikael Lagerblom , Senior Vice President, Sales and Mar- keting. “The professionalism and reliability of our opera- tions in the Middle East and Africa stood out as posi- tive aspects. Logistics emerged as an area for improve- ment, particularly in the Middle East region, which has been strongly affected by the lack of container capaci- ty. We have already taken significant steps to remedy the situation and this work will continue in order to achieve shorter delivery times,” says Kustaa Laine , Vice Presi- dent, Sales MEA. In the Asia-Pacific region, the quality of sawn timber products and skills in collaboration were praised. Our good collaborative network also received positive feed- back. Logistics again emerged as an area for improve- ment.
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270 million seedlings in ten years Metsä Group and forest owners planted 270 million seedlings in Finnish forests between 2010 and 2020. In 2021, the figure will increase by more than 35 million seedlings. Under the Finnish Forest Act, a new forest must always be established after felling. This can be done through natural regeneration, by sowing seeds or by planting seedlings. Planting is the fastest and surest way to create a new forest. To secure biodiversity, individu- al trees from the previous generation are always left in the forest. Forest owners themselves plant around half the seed- lings they acquire through Metsä Group. Metsä Group’s contract entrepreneurs plant the rest. Forest owners are supplied with species that occur naturally in Finland – pine, spruce and silver birch – for use in forest regeneration. Depending on the tree species and the forest owner’s goals, the number of seedlings planted per hectare ranges from 1,600 to 2,200. Spruce and pine seedling are the most popular for forest regeneration. They produce the greatest volume of logs and therefore generate the greatest economic value for forest owners. Metsä Group aims to secure rapid regeneration after felling. The goal is not to miss a single growing season. The sooner we have a vigorous new seedling stand in place, the faster and better the new growing stock can sequester carbon from the atmosphere. Metsä Fibre is part of the Metsä Group. Most of the wood used by Metsä Fibre is purchased from Finnish forest owners.
Reliable information on wood products Puuinfo.fi is a Finnish online service with a focus on wood. It contains the newest facts and science on Finnish wood products, including information and guidance on the use of wood, products, solutions, and their suppliers. The service is intended for construction professionals as well as consumers. Puuinfo.fi is available in ten languages: as well as in Finnish and English, you can read it in German, Spanish, Russian, French, Chinese, Turkish, Japanese and Arabic. The website is maintained by Puuinfo Oy, which works to increase the demand for and use of Finnish wood. Metsä Fibre is a member of the Finnish Timber Council, Puuinfo. More information www.puuinfo.fi
Machine learning combined with X-ray scanning at Rauma sawmill
All Metsä Fibre’s Finnish sawmills have log scanners that incorporate advanced laser and X-ray technolo- gies. Laser measurement determines the exact surface shape of the log, while the X-ray reveals internal factors that affect the quality of the final product such as branches, the thickness of the annual growth rings, and the density of the wood. Based on the measurement data, the logs are graded for the purpose for which they suit best. Along with the log scanner and other measuring devices, the new Rauma sawmill will have an infor- mation system that uses machine learning to assist production planning. Together, they will optimise the sawing process to a previously unattainable precision. The equipment is being supplied by a Finnish company, Finnos Oy. After measurement, the control system divides the logs into sawing batches and allocates them to end products. The system compares the data generated during sawing and the quality of the end product. In this way, it can verify whether the targets set in the grading were achieved in production. The system will also begin to optimise the process through machine learning. “The decisions made in log grading will be steadily refined. The consistency of end product quality and the yield of raw material can continuously improve and remain optimal,” says Jere Heikkinen , the CEO of Finnos.
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Making strategy a reality
Metsä Fibre’s strategic priorities are to be a front runner, to promote sustainability, to exceed customer expectations, and to achieve excellence. We have been systematically focusing on these areas since 2019, and the results show.
Our investments and continuous development work have given us a front runner position in the mechanical forest industry. In Rauma, we are build- ing a new, modern pine sawmill, which will make our deliveries even more reliable and increase our output of high-quality timber. We are continuing to develop our unique bio- product mill concept with a new mill in Kemi. It will immediately improve our environmental performance and extra production capacity will help to meet growing global demand for pulp and strengthen our position as a leading producer of softwood market pulp. Many of our new bioproducts involve the ad- vanced modification of pulp fibres. An example of this is Metsä’s pilot plant with Japanese ITOCHU Corporation, which can already manufacture tex- tile fibres from undried pulp. Currently, we are looking into ways to add properties to pulp that could reduce the use of plastic coating in package cartons. We aim to be a front runner in sustainability and also to support our customers’ sustainable develop- ment. One of our key goals is fossil-free production by 2030. We are a part of the fight against climate change. This is seen in our use of Nordic wood from sustain- ably managed forests and in our resource-efficient products that can replace fossil-based materials. In our efforts to exceed the expectations of cus- tomers, we work as their trusted partner. A prac- tical example is our technical customer service, which has created additional value for our pulp customers for years. We intend to implement a sim- ilar service model on the sawn timber side. Our pursuit of excellent performanc e is the guar- antee that our products are high quality. Our opera- tion is founded on continuous improvement. In the past year we have focused on quality consistency in sawn timber and on providing quality data to customers. We have also introduced a new production effi- ciency model. We have reinforced the skills of our
personnel so that they can handle basic mainte- nance work independently and immediately. This ensures the continuous operation of our produc- tion facilities. Excellent personnel are an absolute requirement for reaching our goals. The high quality of our products is based on their solid competence. We have been investing in their continuous develop- ment, through training and on-the-job learning. We pay special attention to occupational safety, responsibility and sustainable development. We have continued to improve our management and managerial work, as well as developing person- nel involvement. Another objective is to enhance the ethics and sustainability of our operating cul- ture. In this, we will make use of the results of the ethics barometer we carried out in 2020. We are proud of our roots and our solid compe- tence. We have a commanding view of the forest industry and we are developing sustainable solu- tions for the future. •
ISMO NOUSIAINEN CEO, Metsä Fibre
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PROJECT Ö
Designed by Aleksi Hautamäki and Milla Selkimäki, Project Ö is an ensemble of log-framed cabins that the couple have built for themselves in Finland’s rugged outer archipelago. All surfacing for the buildings, from floor to ceiling, on outer walls and on the terraces, is thermally treated Lunawood, able to withstand the severe marine climate as it turns a natural grey. In spring 2021 Project Ö won the Green Good Design award for sustainable architecture.
A NEW DAWN FOR WOOD
Construction wood is experiencing a renaissance as architects discover its virtues as a sustainable responsible material. Consumers are also making responsible choices, boosting the demand for this natural product.
MARKKU RIMPILÄINEN, photos ARCHITECTURE ATMOSPHERES ATLAS & ALEXANDRA TIMPAU, ALEX SHOOTS BUILDINGS
A new market for new wood products is opening. With further treatment, the fine properties of wood can become even more diverse. “The use of wood keeps growing, and thermally mod- ified products are riding a wave of popularity,” says Maija Masalin , Vice President of Marketing and Prod- uct Management at Lunawood, which makes patented ThermoWood products. “Total production volume by the members of the In- ternational ThermoWood Association doubled in 2010– 2020.” VTT Technical Research Centre of Finland began to study thermal wood treatment in the 1990s. It discovered that thermal treatment changes the properties of timber permanently. Heat and steam remove the resin from soft- wood and give it an even, dark colour. After treatment, the wood absorbs only minimal amounts of water, and its resistance to soft rot increases significantly. The timber’s susceptibility to mould is also greatly reduced. Recent years have seen the introduction of many new ways of treating wood, such as by drying and then acetylis- ing it, i.e., treating it with vinegar. In thermo-mechani- cal modification, fresh wood is dried and then put into a mechanical press. By various different methods, wood modifications gen- erally aim towards the same goal: to improve resistance
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LAHOFER WINERY
Ondřej Chybík and Michal Krištof designed the visitor centre of the Lahofer Winery with an undulating roof that mirrors the countryside of Moravia in the Czech Re- public. The cladding of the building and its curved terrace use thermally treated Lunawood which, the architects say, stands up well to the local climate while blending naturally with the surrounding vineyard. Lahofer Winery has won numerous international awards and was among the ten finalists in the Building of the Year competition 2021 on the world’s most visited architecture website, ArchDaily.
to moisture, fire and soft rot. They also seek to reduce expansion and contraction due to changes in humidity. All this is done without hazardous chemicals. “By heat and steam treatment, we produce a finished product that contains no chemical residues. It is ready for use, indoors and out, under all climatic conditions anywhere in the world.” On the south side of the Gulf of Finland, in Esto- nia, Puidukoda is another company with an advanced, open-minded attitude to treating wood. “Our most important product is exterior and interior paneling. We focus on painted or otherwise specially treat- ed products,” says Puidukoda CEO Eveli Opmann . Puidukoda sells all its paint-coated products under its Woodmood brand. “Paint-coated products currently account for roughly 15 per cent of our sales. We only use water-soluble paints, and all our painted products come with a ten-year warranty. We worked with our paint supplier to create installation and maintenance instructions that help protect the coat of paint.” Puidukoda sells a wide variety of different painted sur- faces, wood tones and textures. Like Puidukoda, Luna wood has also focused on product development. “In designing the Lunawood product range, we used Scandinavian design skills. Our products show how ver- satile thermowood is in both outdoor and indoor use, and inspire architects and designers,” says Masalin. Lunawood and Puidukoda both have strict material requirements and will only use sound-knotted Nordic softwood. “This is very much a raw material business. Thermal treatment at a very high temperature requires the world’s best wood, carefully selected, to achieve a high visual and technical standard in the finished product,” Masalin ex- plains. Metsä Fibre provides Lunawood with pine and spruce sawn timber from its many sawmills. Lunawood wants to know the exact origin of the wood. “We favour local wood. Logs travel an average 235 kilo- metres to our mills, and we can tell this to our customers with confidence. PEFC™ certification is also important to
us. Trustworthy material suppliers are vital to our oper- ation.”
SAFE AND HEALTHY Wood is becoming increasingly common in interior clad- ding. Manufacturers can provide a wide variety of pan- els and battens of different widths, which can be either pre-treated or untreated. “Wood that is as natural as possible is currently popular especially in interior paneling. Another strong trend is the use of narrow battens on walls and ceilings. This is something we can see in all our global marketing channels. I am looking forward to the day when wide panels come back into fashion,” says Masalin. Consumers and designers alike have many conceptions and opinions about the health benefits of wood. Today, there is a great deal of research available on the subject. In Austria, a one-year study compared wood-paneled classrooms to others without. The results showed that in a classroom with wooden paneling, the students’ early morning stress levels fell soon after arriving in school, and the levels did not spike, unlike in regular classrooms. Heart rates were also more relaxed and the stress level in classes was reduced.* With the right treatment, wooden surfaces breathe and help to balance out temperatures and moisture, which improves the quality of interior air. In general, wooden surfaces are seen to have a calming and pleasant influence. “Wood activates all the senses when it is used for indoor cladding. It has a strong influence on what people see, feel, smell and experience. Properly used, wood can have an impact on human wellbeing and make the cityscape more enjoyable,” says Masalin. SOLUTIONS TO ENVIRONMENTAL CHALLENGES Another benefit to wood refining companies is from glob- al awareness of sustainability, which is now influencing consumer preferences. “People have begun to understand what it means for wood products to be a carbon store for their entire life- cycle. Other factors apart from just price are beginning
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* Source: Institute for Health Technology and Prevention Research.
With the right treatment, wooden surfaces breathe and help to balance out temperatures and moisture, which improves the quality of interior air.
to influence buying decisions. People want their choices to have an effect,” says Masalin. Opmann believes that personal concern for the home and the environment has started a construction trend that may become permanent. “People are spending more time at home, renovating their houses or building new garden sheds or saunas – and they are all doing it at the same time!” Wood is increasingly the first choice of buyers, builders and the authorities. Over one third of the EU’s carbon dioxide emissions is generated through construction. To achieve the European Commission’s emission reduc- tion target of at least 55 per cent by 2030, EU member states will have to reduce the greenhouse emissions that buildings generate by 60 per cent. “Stricter environmental requirements generally lead to an increase in the use of wood-based materials. On the other hand, wood usage is only now beginning to increase significantly. The economy will have to eliminate the use of fossil materials and migrate to a closed carbon cycle based on biological materials. In the long term, it will be very difficult to find a more durable construction material than wood. Wood is a true solution to the environmental challenges we face today,” says Opmann. INFINITELY MODIFIABLE WOOD In the 21st century, many architects have adopted wood for the facades and inner surfaces of their buildings. “Many architects want to use material that is natural and contains no chemicals. Wood matches that desire, while it brings softness to a scene, space or view. Its immense variety as a surface material also speaks volumes for the
use of wood. No one piece of wood is the same as another,” says Masalin. Professor Sami Rintala , who works in the northern Norwegian town of Bodø, gives an architect’s view. “First of all, architects have an interest in sustainability and they usually want to learn how to do their job better. You can spend your whole life trying to understand wood and still not know everything. The way you treat wood, whether with oil, linseed, wax or heat, will always change its properties. It is always a surprise how well wood can handle moisture and wear, as long as it is used correctly,” he explains. “On the other hand, wood is an incredibly varied and scalable material. You can make every part of a building from wood, from the door handles to window frames, to the ceiling and insulation. And it is infinitely modifiable.” Rintala’s latest large project is the ship museum in Bodø. Wood is the base material in all his work. “It is a very democratic material, wood. Everybody can afford to buy the tools for cutting and modifying wood. Anybody can build a wooden house, if they have the will.” •
LUNAWOOD Manufacturer of patented ThermoWood products for indoor and outdoor use. • Established in 2001 • 125 employees in Finland • Turnover in 2020 EUR 56 million • Delivers to over 60 countries www.lunawood.com PUIDUKODA Manufacturer of planed wood products for indoor and outdoor use. • Established in 1997 • 115 employees in Estonia • Turnover in 2020 EUR 42 million • Delivers to 35 countries www.puidukoda.eu
Maija Masalin Vice President of Marketing and Product Management at Lunawood. Wood has the potential to improve well-being, she says.
Eveli Opmann Puidukoda’s CEO. Believes wood offers real solutions to environmental challenges.
Sami Rintala Architect and architecture teacher who works in Bodø, in Northern Norway.
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READ MORE ABOUT RAUMA SAWMILL PROJECT
The state-of-the-art sawmill line at Rauma is fully automated, from log sorting and drying to the loading of outgoing goods. The new sawmill will be able to produce large quantities of highly consistent sawn timber for all purposes. RAUMA SAWMILL TAKES QUALITY CONTROL TO THE NEXT LEVEL
JUSSI-PEKKA AUKIA, photos METSÄ GROUP
The ultra-modern sawmill currently under construction at Rauma will produce about 750,000 cubic metres of sawn pine annually. “We are implementing the newest production technol- ogy in Rauma, and applying it to the sawmill industry for the very first time. This will enable us to efficiently produce large amounts of very consistent sawn timber,” says Ismo Nousiainen , Metsä Fibre’s CEO. Consistent quality is needed above all by the Metsä Fibre customers that produce advanced products or com- ponents for living or construction. Demand for these products is growing globally. “We aim to produce products that support profitable growth by our customers and ourselves. And we seek sta- ble and enduring customer relationships.” DEVELOPMENT LEAP IN AUTOMATED SAWMILL TECHNOLOGY Rauma’s state-of-the-art sawmill line is fully automated, from the sorting of logs to the loading of output. “Machine vision is used to predict faults and jams on the line, after which robotics and automatics solve the problems without downtime and manual intervention. Sawing and handling speed is more than 40 logs a min- ute – three times faster than the traditional method,” says Project Director Harri Haapaniemi . Quality control starts in the forest where logs for the sawmill are selected. The sawmill knows the material it will receive and the end-uses it is intended for.
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Metsä Fibre aims to transform from a traditional supplier of raw materials into a partner that solves customers’ challenges.
customers’ challenges. Customers have increasing quality requirements, and Metsä Fibre wants to meet their needs by developing its own service offering. “If a customer makes window frames, we do not just supply them with sawn timber. We provide them with the most suitable raw material to produce the best possi- ble window frames,” explains Ari Harmaala , Senior Vice President, Sales and Marketing. Implementing the Timber FOX quality index is part of this new service offering. “Going forward, we will supply our customers with sawn timber and all related data for the product. It will help them use raw materials more efficiently and get exactly the right raw material with an appropriate strength grade for their applications.” Metsä Group is a responsible and sustainable producer covering the entire supply chain from the forest to the end use. “Sawn timber is the perfect carbon storage. The best possible carbon balance in our customers’ products is a significant competitive advantage for them. The best dense-grained Nordic pine is also a valued high-quality raw material thanks to its strength and visual properties.” COMPETENT PERSONNEL FOR TROUBLE-FREE SAWING Liisa-Maija Perävainio , Mill Manager of Rauma sawmill, explains that all operations can be handled from a single control room, thanks to advanced automation and ma- chine vision, as well as the information system used for production control and monitoring. This is a new oper- ating mode in the sawmill world. Another new feature is the increased role of operators, even in maintenance. “Operators monitor the continuous sawing process, prepare for switching batches and report maintenance needs. They manage the operation and are responsible for process observations and measurements to verify that the process is functional, and the quality is as it should be. They are also responsible for proactive maintenance. The new sawmill operators go through a special training programme, in which the mill equipment suppliers are also actively involved. Competent operators play a key role in the production of quality sawn timber.” •
The logs arriving at the sawmill are X-rayed to measure knots and knot frequencies, and to detect hidden quality deviations. After measurement, the control system divides the logs into sawing batches and allocates them to end products. Drying of sawn timber is also precisely controlled to ensure consistency in the required quality. “We produce demanding customer products for manu- facturers of glulam board, furniture and window compo- nents. We have to be able to dry the products down to their low final moisture values without variation in moisture, fractures or deformations,” Haapaniemi says. AN INTEGRATED FOSSIL-FREE MILL The sawmill investment supports Metsä Fibre’s 2030 sus- tainability objectives. By investing in a sawmill alongside Rauma pulp mill, the company is creating a unit that can operate entirely without fossil fuel. Electricity and heat for the sawmill are generated at the adjacent pulp mill, where the wood chips from sawing are used in pulp production, and the bark and sawdust in bioenergy generation. The sawmill and pulp mill also work together in trans- porting wood feedstock. “We use the existing road and rail infrastructure in the area and the nearby harbour, where our contract partner takes care of all shipping and storage operations,” says Haapaniemi. SERVICES ADDING VALUE FOR CUSTOMERS Metsä Fibre is investing heavily in developing the me- chanical forest industry. It aims to transform from a tra- ditional supplier of raw materials into a partner that solves
Rauma sawmill in numbers
INVESTMENT EUR 200 million
WOOD FOR WALLS AND ROOF BEAMS
Wood plays a visible role in the structures of Rauma sawmill. Metsä Group’s sawn timber, plywood, glulam and laminated veneer lumber are used for floor and roof structures, for the bat- tens on top of the external clad- ding, and for the control room and office facilities. Wood will be visible in the interior, such as the floors of the production facilities. Project Director Harri Haapaniemi says that when choosing the sawmill's building materials, the aim was to highlight Metsä Group’s own wood prod- ucts. New hybrid elements developed by Metsä are used in the log sort- ing facility, in which the sandwich structure combines concrete, thermal insulation and sheet made from laminated veneer lumber. These elements are half the weight of equivalent concrete elements and offer a significantly lower carbon footprint. “We are using the wood sensibly with other materials and accord- ing to the building’s intended use. We have really focused on using wood and have created various fire simulations to ensure that the new sawmill can operate safely and in accordance with regula- tions,” says Haapaniemi.
DOMESTIC CONTENT OF THE INVESTMENT 70 %
EMPLOYMENT EFFECT OF THE CONSTRUCTION STAGE 1,500 person years PEOPLE DIRECTLY EMPLOYED 100 PEOPLE EMPLOYED ACROSS ITS DIRECT VALUE CHAIN 500 ANNUAL PRODUCTION 750,000 m³ of pine sawn timber for demanding component and woodworking industry products PRODUCTION WILL START AT THE SAWMILL IN Q3/2022
Ismo Nousiainen Metsä Fibre’s CEO. Rauma will greatly boost our output of consistent sawn timber with its ultra-modern produc- tion technology, he says.
Harri Haapaniemi Project Director of Rauma sawmill project. He says that sawmill’s sawing and handling speed will be three times faster than the traditional method.
Liisa-Maija Perävainio Mill Manager of Rauma sawmill. Thanks to automation, machine vision and the information system, all operations can be handled from a single control room, she says.
Ari Harmaala Metsä Fibre’s Senior Vice President, Sales and Marketing. Sawn timber is simply the perfect carbon storage, he says.
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READ MORE ABOUT SUSTAINABILITY
More wood construction for less climate change
Increasing the use of wood in construction is an efficient way to mitigate climate change. Houses built mainly of wood, which store carbon most efficiently, can have as much as 300 kilograms of carbon per floor square metre. 300 kg
Photos ANDREW TAYLOR & MIKKO TIKKA/FOTONOKKA
If wood were used in the structures, cladding, surfaces and furnishings of new buildings, they could store 55 million tonnes of carbon dioxide in Europe annually. 55 million tonnes
Metsä Group aims to increase the volume of carbon sequestered in forests by 2030. Between 2010 and 2020, Metsä Group and Finnish forest owners planted 270 million seedlings. In 2021, the number will increase by a further 35 million seedlings. 270 million
35 million new seedlings (2021)
715 kg
C0 2
One cubic metre of sawn timber produced from softwood sequesters an average of 200 kilograms of atmospheric
The carbon sequestered in trees originates in atmospheric carbon dioxide. If a forest grows more than it is
carbon, which is equivalent to 715 kilograms of carbon dioxide.
harvested, it acts as a carbon sink, increasing the volume of carbon sequestered in the trees.
The volume of atmospheric carbon sequestered in Nordic softwood species accounts for some 50 per cent of the dry weight of the wood. Depending on the species, one cubic metre weighs 380–403 kilograms. 50 %
80 %
2,5 billion m 3 (2020)
In Finland, approximately 80 per cent of the annual net growth of forests is harvested, which means that the wood volume in forests is increasing annually. In 2020, the volume of growing stock in Finland totalled some 2.5 billion cubic metres.
380–403 kg/m 3
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Sources: Aalto University, Natural Resources Institute Finland, Metsä Group
Homebase sells over 35,000 different products to British homes and gardens.
Nordic sawn timber is a hot commodity in the UK’s Do It Yourself market. We backtracked timber’s journey all the way to a Finnish forest. TIMBER TO BRITISH HOMES AND GARDENS
SAMI ANTEROINEN, photos HOMEBASE, SAMI VALLIUS & LINA JELANSKI / DUOTONE
Eric , 32, is on the lookout for sawn timber for his deck project – a key part of the ‘Reboot the Garden’ initiative he and his wife Sharon , 30, started in spring 2020. Strolling around their local Homebase store, Eric notices fine sawn timber by Metsä Wood UK, a customer of Metsä Fibre. Eric grabs hold of the wood. The quality seems impres- sive enough. Eric is crunching some numbers inside his brain as Sharon appears, seemingly from out of nowhere: “Can you make me also a trellis out of that while you are at it, love?” We hate to leave Eric and Sharon right now – as ‘Reboot the Garden’ seems quite intriguing – but we must. Strictly speaking, Eric and Sharon do not even exist and were only invented for an introduction: to take you, the reader, into the thick of things immediately. But while this particular Eric and this particular Sharon are figments of imagination, Chris O’Boyle , Director of Trading for Every Day Repair and Maintenance at Home- base, assures us that there are, indeed, thousands of real- life Erics and Sharon’s out there rebooting their gardens. QUALITY MATTERS It is no surprise that over the past year, people have been spending more time in their homes and gardens than ever. “As people have spent more time at home, they have become more confident to have a go at all sorts of projects,
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Metsä Wood UK picks up its timber at the Boston port on the east coast of England.
“Nordic timber has the advantage of being sustainably sourced from carefully managed woodlands.”
WHEN THE PERFECT STORM HITS Steve Bourne , Head of Retail Sales at Metsä Wood UK, has seen the sales figures for timber soar during the pandemic. “What we had for years was a slow decline in sales. But, during the last year or so, we have witnessed a real perfect storm situation.” In this storm, the lockdown has forced citizens all over Britain to sit with their paychecks on their sofas and spend most of their time at home. But, sooner or later, idle hands and untapped finances always find an outlet. “Our sales just took off at the end of April 2020, and they have only accelerated since,” marvels Bourne who talks about “generational shift” taking place in the DIY market. “People are choosing to use their homes differently, so attention turns to remote working solutions or fixing up the garden. Younger and younger people are being encour- aged to try their hand at DIY,” Bourne says. DIY IS HERE TO STAY Nevertheless, while Covid-19 is on its way out, Steve Bourne believes the newfound popularity of DIY is here to stay. “We have seen a complete change in customer behaviour that makes for a super exciting time,” says Bourne, who has been with Metsä for 18 years without having ever seen anything even remotely similar to this boom. Looking ahead, Bourne says that it is essential to re- inforce the image that Metsä Wood does not sell “sticks of wood” but instead provides the means to pursue your home and garden dreams. “We want to capture the imaginations of people and show them what they can build from Nordic wood. At the same time, we want to educate the consumers about sustainability issues, starting with how Metsä plants seed- lings for every felled tree.” BEYOND BOSTON PORT Metsä Wood UK picks up its timber at Boston, a port on the east coast of England, and then takes it for upgrading to a site situated locally at the Boston manufacturing unit. Here, the timber is processed according to the customers’ specifications and sent to the DIY stores around the UK. But what is happening beyond the sea – can we track that timber back to its origin in a Finnish forest? We most certainly can. Before Metsä Fibre loads up the timber on Metsä Group chartered vessels on various ports on the west coast of Finland, the wood has already traveled a bit.
Chris O’Boyle
such as decking their gardens and boarding out lofts for extra storage space,” says O’Boyle. He also knows what the real-life Erics and Sharon’s want when it comes to wood: they look at the material and consider how the qualities of the wood fit their project. Does it splinter? Is it safe for children? “Quality of the product and consistency matter. Custom- ers want to know that the wood they are about to buy is not warped or split and will be a long-term investment.” Furthermore, sustainability and concern for the envi- ronment are certainly trending among consumers, with O’Boyle highlighting that Nordic timber has the advan- tage of being sustainably sourced from carefully managed woodlands. STRONG COLLABORATION THAT WORKS Metsä has been a supplier to Homebase for over five years. “We have built a great partnership. One thing that has helped us maintain good levels of timber supply during a very challenging time is the constant communication between us and Metsä, and the shared goal of getting it right for our customers,” says O’Boyle. How about the future of Nordic timber in the UK? Will the DIY trend and Nordic timber stay hot when Covid-19 is but a memory? O’Boyle believes that the future is very bright for both.
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The Vilppula sawmill turns out 535,000 square metres of spruce sawn timber every year.
“We have been entrusted with this wood to use it wisely.”
Jaakko Vierola
Jaakko Vierola , Vilppula sawmill Mill Manager at Metsä Fibre, is the expert we need to see next. Vierola knows all about ensuring the quality of timber – and how to choose the appropriate raw material for specific products. “The technical quality of the timber is the single most important factor from the customer’s perspective. There- fore, we practice extensive monitoring to ensure consistent quality.” SAWMILL FEEDS THE SPIKE Located in Central Finland, the Vilppula sawmill turns out 535,000 square metres of spruce sawn timber every year. The various ‘Reboot the Garden’ projects in the UK and else- where in Europe are certainly making an impact at Vilppula. “We can see that people really are building decks right now,” Vierola laughs. Vierola also believes that wood, as a sustainable material, will continue to prosper throughout the 2020s and beyond. But, in the meantime, Vierola feels that he is the caretaker of something precious – and not just in economic terms. “We have been entrusted with this wood to use it wisely. The added value we as a sawmill can deliver depends on us doing things right.” MEET THE TREES! But before timber arrives at Vilppula, of course, it has to be harvested. We are entering the domain of Metsä Forest:
the sister company of Metsä Fibre in charge of the felling operations and the transport of the timber to the sawmill. Director Yrjö Perälä from Metsä Forest points out that the Finnish green gold is mostly in private hands: 2/3 of the Finnish forests are owned by the citizens and only 1/3 by the state, companies and other public organisations. “This means responsible owners who take care of their forests,” Perälä says. When those owners have decided to sell a part of their forest to Metsä Forest, the forest machine operators, typ- ically entrepreneurs, step in and cut down the trees. The sawmills of Metsä Fibre are built in the woodlands of Southern Finland. The distance from forest to sawmill is short. “It is important to take the timber to sawmill while it is freshly cut to maintain good quality,” Perälä says. GET TO THE SOURCE Yrjö Perälä has seen digitalisation shape the boots on the ground mindset of the forest industry. Today, the data about the origins of wood flows from the forest to the sawmill. As a consequence, we know exactly where the raw material for all those Brit decks comes from. “Today, transparency and traceability are at the very core of the journey of the Nordic wood,” Perälä says. “When you add to that a thoroughly sustainable value system, you have the whole story.” •
Chris O’Boyle Director of Trading for Every Day Repair and Maintenance at the UK do-it-yourself chain Homebase. O’Boyle believes that the British DIY sector is now experiencing a true renaissance.
Steve Bourne Head of Retail Sales at Metsä Wood UK. He has been with Metsä for 18 years without ever having seen a DIY boom like the present one.
Jaakko Vierola Manages the Vilppula sawmill at Metsä Fibre. Being a guardian and caretaker of Finnish wood is a great responsibility, he says.
Yrjö Perälä Director responsible for timber acquisition at Metsä Forest. In his view, transparency, traceability and sustainable values form the foundation for the industry today.
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GROWTH ON THE HORIZON
The home-improvement trend in North America has significantly increased the prices of sawn timber there and elsewhere around the world. Experts reckon that some of the demand increase may be permanent.
HEIDI HAMMARSTEN, photo MIKKO TIKKA/FOTONOKKA
“The demand for sawn timber exceeded supply from ear- ly 2020 to the first half of 2021, and this trend allowed prices to reach all-time highs. They went off the chart and peaked in late May,” says Russ Taylor of the mar- ket situation in North America in the summer of 2021. Taylor runs his own forestry sector consulting company. However, what goes up must come down, and US prices have plummeted by 75 per cent to reach more modest levels in August 2021. “Producers initially thought that the markets would de- cline due to the coronavirus pandemic, but because people were stuck at home, they started renovating and carrying out DIY projects. At the same time, sawmills decreased their production flows.” Both home builders and renovators could not obtain enough structural sawn timber. He initially estimated that local sawmills will not be able to make up their production losses until later in 2021, but this has already occurred. Up to the end of 2021-Q2, North America has therefore been a fruitful market for imports from the rest of the world. These imports have covered the tight mill capacities in domestic production. Taylor believes the increase in demand will continue at a moderate pace.
“We knew that a price correction will occur, as was ev- ident in early June 2021, but the demand will still remain strong. It is estimated that the demand will grow by an annual rate of about six per cent in 2021 and perhaps at four per cent in 2022. Sawmills currently have full order books and limited capacity.” Insect damage has also been a problem in British Co- lumbia, Canada, where a pest called the mountain pine beetle has taken its toll, causing 40 sawmills in the Interior region to close since 2005. When less and less raw material is available, the number of sawmills also decreases. Addi- tional capacity is appearing only in the southern parts of the United States, where the forests are plentiful. Residential construction, repair and renovation each represent a little more than a third of sawn timber con- sumption in North America. The remaining third com- prises the woodworking industry and non-residential construction. A specific local feature is the strong role of wood in housebuilding. The environmentally conscious trend is also increasing the use of wood in building tower blocks, and new factories producing composite panels from cross-laminated timber (CLT) are being established in North America.
Russ Taylor Experienced forest industry consultant and market analyst, working for his own company, Russ Taylor Global.
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According to Tomohiro Kubo , a little less than 60 per cent of residential buildings in Japan are built from wood. Kubo works as Manager of the Wood Products Division at ITOCHU Kenzai, a trading company specialising in build- ing materials. “Wood is well suited to Japan’s four seasons: the summer is hot and humid; the winter is dry and cold. The Japanese like wood as a material because it creates a warm, soothing and relaxing atmosphere,” he explains. As the Japanese population is ageing, exceptional growth in the construction market is not expected, but Kubo thinks the outlook is stable. This is also affected by the fact that the environmental conditions in Japan mean the expected service life of a traditional wooden house is ap- proximately 30–40 years, after which a new house is built. The furniture industry was previously a significant sector in Japan, but it has now mostly shifted to cheaper coun- tries like China and Vietnam. While 43 per cent of wood is used in construction in Japan, the share of furniture is currently only five per cent. “A growing trend is that instead of local construction, glulam products and wood that is industrially sawn to size are used. This sets even higher quality standards for the wood used.” Japan is one of the most forest-intensive countries in the world, but it still relies strongly on imported wood. The majority of the forests are on steep mountainsides. They are not managed, and harvesting is expensive. “In recent years, the government has been encouraging and supporting forest use. The goal is to increase forest self-sufficiency from the current 30 per cent to 50 per cent by 2025. However, this requires the government to support the industry.” The peak that started in the United States has even dou- bled the prices of sawn timber in Japan. Imports from Europe are preferred because of higher quality standards and the promise of more stable supply and prices. “Historically, sawn timber has been too cheap. Hopeful- ly, prices will now be staying a little higher than before,” says Kubo. •
THE SPEED OF RECOVERY IS THE KEY The impacts of the coronavirus crisis on the sawn timber market in Europe were not as major as feared, but it remains to be seen how the aftermath of the crisis will play out. “It is still unclear how the EU recovery package will be realised, how the economy will be boosted, and how all of this will affect construction,” says Antti Koskinen , Senior Consultant at AFRY. In Europe, approximately 70 per cent of sawn timber is used for construction. Packaging makes up a little more than ten per cent. The rest of the sawn timber is used for the woodworking industry and furniture. “The construction industry is sensitive to economic fluc- tuations, and a lot of internal changes are taking place. During the coronavirus pandemic, repairs and other DIY projects in households became surprisingly popular.” The assumption for the coming years is that construction will grow at a rate of a few per cent a year, and this will be reflected in the demand for sawn timber. The spike in demand and prices in North America also increased sawn timber prices dramatically in Europe: mar- kets operate globally, and European sawmills started to fo- cus on exports to North America. According to Koskinen, prices usually come down quite quickly after initial spikes. “Let us hope the prices come down in a controlled fashion, because sawmills often struggle when reacting to rapid price drops.” Insect damage due to global warming has occurred in Central Europe and even as far north as southern Sweden. Attempts are being made to limit the damage by felling, and a lot of cheap poor-quality wood is coming to the market as a result. Sustainability and climate issues are increasingly impor- tant subjects in Europe. At least in terms of attitudes, this is making wood construction more popular. Yet the change is still not visible in regulations. WOOD CONSTRUCTION IS TRANSFORMING IN JAPAN Japan has a long tradition of wood construction, and it is by far the most important application of sawn timber.
In North America, the environmentally conscious approach also covers the origin of the wood.
“According to statistics, residential construction is on the rise. People want to move from city centre apartments to more spacious single-family homes because of remote work and remote schooling,” explains Taylor. In North America, the environmentally conscious ap- proach also covers the origin of the wood. Many large re- tailers require wood products with various environmental certificates (FSC®, PEFC™, SFI®). WILL CHINA SEE AN INCREASE IN SAWN TIMBER PRICES? Of all the markets in the forest industry, China is the most dependent on imports. However, these imports are di- vided into very different products: log (roundwood) of lower to mid-quality is imported to China, and the local mills saw it when they need sawn timber for construction. Wood is not really used in Chinese construction. Instead, sawn timber is used, for example, to produce cast moulds for concrete forming. However, sawn timber of better quality is required for the furniture industry, and this is increasingly imported from Europe. “Only 45 per cent of the wood used in China is produced locally. The share of imported wood is 55 per cent, and it includes sawn timber, logs, pulp and paper,” says Russ Taylor. Up till the pandemic, the price of sawn timber in Chi- na had been approximately 20–30 per cent lower than in North America. Global demand has increased so much that Taylor believes prices will go up and some products will
eventually approach global market prices in China as well. “After the global financial crisis in 2009, the whole world hoped that China would buy their products – no matter how cheaply. The economy is now running better, and by about 2025, China may no longer be able to find enough logs or lumber to import without paying closer to a global or higher price.” Although China was the first country to be hit by the Covid-19 crisis, it survived with less economic damage than the rest of the world. “It is estimated that after the spike in recovery, the Chi- nese economy will improve at a rate of five per cent over the next five years, which is quite fast. However, Chinese exports have been struggling. Furniture exports have been subject to import duties and antidumping regulations. Economic growth will ensure that the standard of living will improve, and an even larger share of production will be consumed domestically.” According to Taylor, the Chinese do not yet care about the origin of the wood they use. They will have to start caring if they want to export their wood products to the rest of the world, but exports are slowing. “China is actively protecting its own forests, on which less than half of its own production is based. I believe Chi- na plans to use imported wood sourced from around the world until the supply of cheap wood dries up. They will then have an increasing number of their own plantation forests, and they will be able to use this wood for a number of applications and be more self-sufficient.”
Antti Koskinen Senior Consultant at AFRY Management Consulting. Koskinen has been following the forest industry for more than two decades.
Tomohiro (Tom) Kubo Manager of the Wood Products Division at ITOCHU Kenzai, a trading company specialising in building materials.
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