Finnish manufacturers produce 15% of Europe’s (EU25) sawn timber. The significance of Finnish companies is increased by the fact that about 65% of output is exported. Finland is, however, the most important consumer country and at present almost one cubic metre of sawn timber is consumed annually by each Finn. Elsewhere in Europe, per capita consumption is less than 0.3 cubic metres.

Competition intensifying

The Finnish sawmilling industry has been losing market shares in recent years as production has grown especially in Germany, the countries of Eastern Europe and Sweden. Finnish companies primarily compete against rivals from the coniferous forest belt. Finnish sawn timber, based on a raw material grown in the Northern part of Europe, is known for its good quality and dense annual rings. Therefore e.g. the Finnish stress graded goods reach high strength classes and can be used in demanding end-uses.

The competitive advantages of Finnish producers are high-quality raw materials, competence and the efficiency of production. The high cost of raw materials and the long distances over which products need to be transported to the main markets are factors that weaken competitiveness.

The sector is susceptible to cyclical fluctuations. Demand is determined by changes in construction activity and competition factors, the effect of which can be mitigated by domestic consumption and a higher degree of processing. This alleviates demand fluctuations and eases competition. 

Wood construction the largest use sector

Finnish sawmills concentrate almost exclusively on the softwood species pine and spruce. The sawmilling industry uses logs as raw material; 2.2 cubic metres of logs are used in the manufacture of one cubic metre of sawn timber. Sawlogs are the most expensive lumber grade and accordingly account for over two thirds of all production costs.

Finnish sawn timber is primarily used for many forms of building activities. The most significant use sectors are the timber framing (structural sawn timber) and a multitude of interior decoration products, such as floorings, wall panels, mouldings, doors, window frames and furniture. Additionally, sawn timber is used during construction to make casting moulds and scaffoldings. 

Further processing

Increasing share of the products are further processed at the mill or a plant next to it. Sawn timber can also be stress graded, planed, fingerjointed, grooved and tongued, and cut to dimensions specified by the customer. It is also used for impregnation or to make glulam or heat-treated wood.