Examples of areas of application that are on the increase
- Multi-family residences/apartment blocks made of wood
Investments are currently being made in Sweden amounting to approximately SEK 800 million which will increase production by 2,600 apartments a year. In addition to investments being made in Sweden, there are established construction companies that are investing in wooden houses in Finland and the Baltic States as well.
Major development potential for more areas of use. Paper production is on the decrease while the production of packagings is on the increase. Over the next three years, the production of pulp is expected to increase by approximately 20% in Sweden and 10% in Finland, which corresponds to an increase in raw material consumption of about 10 million cubic metres of forest resource.
- Energy raw material
Pellets and wood chip combustion as an alternative to fossil fuels. The advantages of good distribution channels for forest products in the Baltic Sea region. Fortum’s new facility in Värtahamnen was recently put into service and can accommodate large amounts of raw material, by land or by sea.
Investments in the forestry industry
Interest rates and demand are deemed favourable to investments which will lead to capacity increases and an increase in the demand for raw materials.
Investments in the forestry industry are expected to be approximately SEK 10 billion per year over the next few years. Implemented investments in Värö, Östrand, Gruvön and Skärblacka amounted to SEK 15-17 billion.
Research initiatives in the forestry sector are approximately SEK 1 billion per year; the aim being to double this figure by 2030. Stora Enso for instance has recently invested in the establishment of research offices in Stockholm, Sweden and Finland.
Investments in the forestry industry are also expected to be approximately SEK 10 billion per year. Mätsä Fibre invested approximately SEK 11 billion in a new pulp mill completed in 2017.
Research initiatives in the forestry sector in Finland are approximately SEK 1 billion per year.
- The Baltic States
The Baltic States are generally smaller players that do not generate the substantial, individual investments that we see in Sweden and Finland. The forestry industry is expected to develop at a high pace as it is an important industry for all three countries. Investments of approximately SEK 3 billion per year have been made in agriculture and the forestry industry in Latvia in recent years.