Maintaining and developing a competitive operating environment plays a key role in the development of a high value-added bioproduct industry in Finland.
Future pulp mills enable improved circularity and may act as a platform for external companies working in a bioecosystem. A mill willl have more departments/plants that use all streams, as well as possible external operators, all on the same mill site. There is no single solution for the mill, but rather a range of options in both the core mill and operating within the ecosystem.
Whether continuous cover is superior to rotation forestry is a widely discussed topic. Depending on one's needs, multiple thinning techniques exist within the various forest management approaches.
During past two years Europe have witnessed a global pandemic and war starting inside its boarders. Two back-to-back crises have created a snowball effect to the European economy , causing production costs also in the paper and board industry to soar. Impact of the cost inflation is not the same for everyone, but what should the producers do to be in the winning side?.
The global environmental crisis, including climate change, waste pollution, and environmental degradation need dramatic and fast reaction and a major paradigm shift in consumption. Fibre-based substitution of plastic packaging is one of the solutions the bioproducts industry can offer.
The timber market dynamics have been turbulent the past few years due to supply and demand shocks. The ongoing war in Ukraine will reshape the wood supply from Russia and Belarus to Europe and the descending economic iron wall may prepare ground for new major disruptions.
The war in Ukraine inflicted an economic shock and upheavals on the forest industry value chain. The biggest impact on European factories and competitiveness takes place via rising energy prices. This concerns especially large mills running on Russian gas. New, energy-efficient lines strengthen their position in the cost competitiveness curve, increasing the gap to competing mills. CO2 emissions permits, chemicals and freight will become more expensive and weaken Europe's global competitiveness.
There are 3.5 million hectares of forests in Bayern and Nordhein-Westfalen regions, of which nearly one million is state-owned. The prices of wood-based raw materials have soared high, as the demand exceeds supply in all major markets while expansionary monetary policy is speeding up the inflation. States and companies must restructure to survive and build sustainable growth.
Forests are among the cornerstones in combating climate change and preserving biodiversity. The European Union has drawn new guidelines and set ambitious targets to ensure the sustainability of forestry activities. Despite being part of the same economical regime, the European countries differ in terms of economy, industry structure and wildlife habitats and therefore one size does not fit all.
Forest and bio-based businesses are, without a doubt, among the most important industries for mitigating climate change, combating biodiversity loss and rising pollution, and in reducing wasteful use of natural resources. Our position is unique. Our industry is working with a diverse renewable raw material, that offers limitless options for reducing emissions by substituting fossil alternatives.