The investment will lead to a significant increase in the export of timber products from the heart of the best coniferous forest in the world.
One of the biggest sawmill companies in northern Finland, Junnikkala, is preparing for a big investment that will launch the construction of a modern sawmill unit in Oulu. Construction will begin in 2022 and will be finished by the end of 2023. The 70 million euro investment will be the biggest investment in Junnikkala’s history. Currently Junnikkala has two sawmills in northern Finland, in Kalajoki and in Oulainen.
The investment will utilise state of the art sawmill technology and Nordic innovation, setting the foundation for future investments for Junnikkala. The increasing demand for high-quality and sustainable timber products in the construction industry on a global scale combined with the positive development of the sawmill industry, provides the opportunity for the investment.
“The new sawmill in Oulu will make Junnikkala an even stronger company in the market that needs to be able to meet the demand of the carbon neutral construction challenge. The new sawmill in the capital of Northern Finland will support our sustainable growth strategy, and we are building for the future in the long haul. The latest sawmill innovations will be applied in our new unit which will ensure that we can make use of the high-quality raw material to its maximum,” says Kalle Junnikkala, the CEO of Junnikkala.
The modern sawmill can process the timber in all sizes and the enclosed sawing process minimizes the internal traffic at the factory. The location of the sawmill creates great logistic synergies in receiving the material, delivering the by-products for energy production and the transportation of the timber products. This cuts the emissions and brings renewable, more sustainable options for a circular economy.
With the investment, Junnikkala production increases up to 650.000 m3 which means procuring 1,4 million cubic metres of wood per year and makes the company one of the largest among the sawmill industry in Finland. The annual turnover is estimated to be about 250 million euros. Up to 90 percent of the production of the new Oulu sawmill will be exported from the Port of Oulu to 50 different countries all over the world.
The production capacity of the new sawmill will be 300.000 m3 per year. The new sawmill will process 700.000 m3 of wood, 80 percent of which is redwood and the rest being whitewood. The durability of Junnikkala products comes from the high quality features found in Northern Finnish lumber that has a high density of grain and a thick portion of heartwood. Junnikkala products are made of possibly the strongest wood in the World and have a high demand globally. The new sawmill is located in the heart of the European coniferous forest belt and so provides excellent access to this renewable resource.
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