Timber scarcity alters Finland's forest products sector

Posted on September 15, 2023   |  

Finland grapples with a shortage of wood, a vital industrial raw material, particularly in the southeast region.

Before Russia invaded Ukraine, Finland relied on Russia for 7-10% of its raw wood used in processing, with higher dependence in the southeast.

This reliance led to significant changes in Finland's forest industry due to raw material scarcity.

The Sunila pulp mill in Kotka is the first casualty, set to close by year-end due to unprofitability worsened by the halt in Russian imports.

Increased use of wood chips and pellets for biofuel further strains supplies, while EU carbon sink obligations and declining forest growth pose challenges.

These factors require substantial adjustments in Finland's forest industry to address wood limitations.