Koskisen beings operations of new sawmill, ramping up production capacity

Image: Koskisen

The sawn timber production of the wood products company Koskisen’s new processing unit started as planned at the beginning of July.

Production of the new unit will be ramped up gradually during H2 2023, and full operating capacity will be reached in early 2024.

“The new production line will increase sawmilling productivity by up to 40% and enable the use of smaller log diameter. This way, we will be able to serve our customers with new products and the wood raw material will be used even more precisely in end products that bind carbon for a long time,” said Jukka Pahta, CEO of Koskisen.

The sawn timber industry segment’s EBITDA will improve by approximately €8m annually once full production capacity has been reached.

The EBITDA improvement consists of, among other things, higher sales volumes, increased side streams, as well as improved material efficiency and quality yield. The unit’s significantly higher degree of automation and more efficient logistics will also improve profitability.

The total investment in the new unit is approximately €50m in 2021-2024.

In the first phase of the investment, the unit’s production capacity will increase from the current 300,000m3 to 400,000m3. In the second phase, it is possible to increase volumes up to 500,000m3. In addition to increasing volumes, product quality is also improving.

Source: Lesprom