Forest Products Industry

Finland’s economy has long been rooted in its forests, but in 2026, the sector sits at the intersection of energy transition, environmental regulation, and global market uncertainty. Source: ResourceWise A glance at Finland’s real-time energy production reveals a system increasingly diversified across nuclear, hydro, and renewables. Yet beneath this transition lies a quieter but equally critical story: the evolving role of forestry in powering both industry and energy systems. Finland’s energy picture depends heavily on whether we look at electricity output or total primary energy consumption. In electricity, nuclear power provides a stable base of about 4,200 MW, while hydropower has around 3,200 MW of capacity but often produces closer to 1,500 MW, depending on rainfall and snowmelt. Wind capacity has grown rapidly to about 8,000 MW, but actual output varies sharply, creating grid-balancing challenges during swings between over- and undercapacity. The broader energy balance tells a different story. When heat, fuels, and industrial energy are included, bioenergy remains Finland’s largest energy source, at roughly 135 TWh, ahead of nuclear energy at about 105 TWh. Oil remains significant at around 70 TWh, while hydro and wind contribute roughly 25 TWh and 20 TWh, respectively. This matters for forestry because forest-based energy, wood fuels, black liquor, and residues, remains central to Finland’s energy system, even as its role is slowly declining due to electrification, electric boilers, heat pumps, and growth in wind and nuclear power. The Finnish forestry industry is currently navigating a cyclical downturn: Industrial roundwood purchases are down roughly 20% year-on-year Pulpwood prices have fallen sharply—by up to 39% over eight months Sawn timber production dropped 20% in early 2026 due to weak demand and weather disruptions   This correction follows a period of overheated markets and is now compounded by subdued global demand particularly in Europe and China. Pulp markets remain soft, with producers curtailing output and delaying investments in new capacity. At the same time, logistics challenges such as rising fuel costs and disruptions to global shipping routes are increasing costs for Finland’s export-heavy forest industry. With freight prices surging and supply chains strained, margins across the value chain are under pressure. Environmental regulation is becoming a defining force in Finnish forestry. A new government proposal would restrict logging during birds’ nesting seasons, introducing legally binding requirements for biodiversity protection. Logging could be limited for several months annually in sensitive habitats, potentially tightening timber supply. At the same time: Environmental support funding is being reduced and more narrowly targeted Over 1 million hectares of private forest are under “silent conservation,” reflecting voluntary biodiversity protection by landowners   These developments highlight a structural shift: forestry is no longer judged solely on output, but increasingly on ecological impact, carbon balance, and amenity values. Despite headwinds, the Finnish forestry sector continues to demonstrate resilience and adaptability: Companies like Westas have improved profitability through operational efficiency and targeted investments. Many private sawmill companies have modernized their facilities and increased capacity simultaneously. AI and digital tools are transforming forest management, enabling more precise planning and damage detection Meanwhile, state forestry operator Metsähallitus reported record financial performance in 2025 while expanding conservation efforts and renewable energy development. This reflects a broader trend: integrating commercial forestry with sustainability and land-use diversification. Finland’s forestry industry is entering a new phase less defined by volume growth and more by efficiency, sustainability, and integration into the broader bioeconomy. Key trends to watch include: Continued pressure on pulp markets and short fiber pulp producers and limited new capacity investments amid increasing costs Increasing regulatory constraints tied to biodiversity and climate goals Declining role of wood-based fuels in energy production Growing importance of technology and data in forest management   In many ways, Finland’s forests remain as vital as ever, but their role is changing. No longer just a source of raw materials, they are becoming a strategic asset in climate policy, energy systems, and sustainable land use.

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Södra is taking the next step in its innovation journey with the launch of Södra blue S – a new type of paper pulp that combines softwood fibres with oat hulls from Swedish grain processing. Source: Timberbiz The initiative is a concrete example of how Södra explores new solutions while using resources more efficiently to create value and contribute to a more circular future. Södra blue S has been developed to meet the growing demand for renewable materials and more circular use of resources. Drawing on its extensive experience in forest-based raw materials and more than 10 years of developing technologies to utilise residual streams from other value chains, Södra is now broadening its fibre base without com-promising on quality. The new process makes it possible to combine forest fibres and agrofibres directly in the pulp process, enabling Södra to increase yield and improve strength properties. Pilot trials show that blue S delivers enhanced strength properties and good runnability in paper production. Several trials have been conducted at Södra Cell Värö with very positive results. Towards the end of 2025, the conditions were established to enable campaign-based volumes. “Södra blue S demonstrates what happens when we challenge our own assumptions. By combining forest raw materials with oat hulls from a local partner such as Berte Qvarn, we increase resource efficiency and create value across two key basic industries. The results show that the technology works and that the pulp is of high quality. This is a concrete step towards the circular fibre solutions of the future,” said Annica Ahlstedt Larsson, Head of The oat hulls used to produce blue S come from the local food producer Berte Qvarn, located just south of Värö. Their local origin means shorter transport distances while making raw material flows more resilient by building on industries in the surrounding region. The collaboration also creates new value between two industries that have traditionally operated side by side – forestry and agriculture – as a by-product from oat production is now given a clear function in paper pulp. Oat hulls, which previously had limited areas of use, are thus transformed into a valuable raw material that contributes to increased re-source efficiency and opens up new possibilities for future fibre solutions. “This collaboration shows what becomes possible when we look beyond our own value chains. By combining expertise, local residual streams and a shared ambition to develop new solutions, we take important steps towards the circular systems of the future. Together with Södra, we are exploring new ways of creating value from existing resources and contributing to long-term sustainable development,” said Olof Stenström, CEO, Berte Qvarn.

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The Construction Industry Training Board (CITB) in the UK is urging more women to consider a career in construction as the latest figures reveal an increasing number of women are pursuing construction training. Source: Timberbiz Using statistics from the Department for Education, CITB has found that the number of women starting construction apprenticeships has jumped from 1,450 in 2018 to 2,410 in 2025. During the same period, the number of women completing a construction apprenticeship increased from 340 to 910. While the growing increase of women starting apprenticeships in the construction industry and completing them is a positive outlook on building the future, there is a push for the introduction of policies that are aimed at promoting gender equality to further shrink the gender and skills gap. CITB funds training and supports work placements through its Onsite Experience hubs, creating a talent pipeline to meet the needs of local construction employers and enabling construction career opportunities for people from local communities. As part of its commission, CITB works with The Skills Centre, which is running lots of activities throughout March to encourage women into the industry. As a result of CITB’s investment in The Skills Centre’s Onsite Experience hub, 182 women have been trained to secure employment in construction. Recently, The Women and Work All-Party Parliamentary Group (APPG) released the ‘Women and Work APPG Report 2025′ focusing on strategies to break down barriers that stop women from get-ting into construction. With significant demand for skilled workers in the construction industry, as shown by CITB’s Construction Workforce Outlook that highlights the need for 47,000 additional workers every year to meet demand, diversity in construction should not be viewed as a challenge to be managed, but a solution to the skills gap. “It’s really encouraging to see the continued increase of women starting and completing construction apprenticeships,” Deb Madden, Executive Director, Customer Engagement and Operations at CITB said. “It’s important that, as an industry, we retain these women and ensure their apprenticeships translate into long-term, secure job opportunities. “Across the industry, we need to establish a culture that ensures it seeks to understand and meet the needs of people of all backgrounds. We need employers to establish clear and accessible pathways for a diverse range of candidates to learn and progress, making it more attractive for them to stay in the industry, and ensure all employees have a good work-life balance.”

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Nearly $30,000 has been spent cleaning up a single illegal oil dumping incident in Tasmania’s north-west, as the state’s forestry agency warns hazardous waste is increasingly being abandoned in public production forests. Pulse Tasmania Sustainable Timber Tasmania says petrochemicals, asbestos, tyres, vehicles and clinical waste are among materials being dumped on permanent timber production zone land across the state. The recent oil dumping incident triggered a major clean-up, with crews using absorbent materials to stop the spill spreading into soils, vegetation and drainage lines. Over the past three financial years, illegal dumping has cost the agency an average of $39,000 a year to inspect, manage and remove. The single oil incident accounted for almost $30,000 of clean-up costs on its own. Suzette Weeding, general manager of conservation and land management at Sustainable Timber Tasmania, said the dumping was draining resources. “Illegal dumping places a growing strain on Tasmania’s public forests and the resources required to manage them,” Ms Weeding said. “While Sustainable Timber Tasmania already undertakes significant effort each year to respond to unlawful waste disposal, the recent oil dumping incident has materially increased that impact.” Ms Weeding said the cost was not just financial. “These incidents pose a serious risk to forest ecosystems, waterways and wildlife,” she said. The agency said each clean-up required specialist resources and pulled staff away from planned forest management work. Sustainable Timber Tasmania is working with Tasmania Police, the Environmental Protection Authority (EPA) and other agencies to investigate incidents and deter further offending.

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The Housing Industry Association (HIA) has welcomed the Commonwealth and Queensland Government’s announcement of more than $2 billion agreement to support the delivery of up to 51,000 new homes, including 20,000 exclusively for first home buyers across the state. Source: Timberbiz Under the agreement, more than 20,000 homes will be reserved for first home buyers, supported by a $2 billion Australian Government contribution, including $399 million in grants and $1.6 billion in concessional loans for essential infrastructure. The Queens-land Government will match grant funding with a further $399 million investment. The announcement forms part of the Albanese Government’s commitment to work with states and territories to help deliver up to 100,000 homes for first home buyers, with a focus on unlocking housing supply through targeted enabling infrastructure funding. HIA Managing Director, Jocelyn Martin, said the announcement recognised that increasing housing supply was critical to improving affordability and one of the largest impediments to delivery of more housing faster, includes boosting funding for “key last mile” trunk infrastructure. “This announcement recognises that the fastest and most effective way to help first home buyers is to unlock more housing supply, and that means removing the infrastructure and planning barriers holding projects back,” Ms Martin said. “HIA has consistently called for targeted investment that unlocks land, accelerates de-livery and supports industry to build at scale, and we welcome the Commonwealth’s continued focus on supply and work with State and Territory Governments to make this happen. “Builders often tell us that getting this key ‘last mile’ infrastructure is what holds many projects back from being delivered in a more-timely fashion, today’s announcement is a key plank in addressing that.” HIA Executive Director Queensland, Michael Roberts, said builders across the state were ready to deliver more homes but continued to face constraints that delayed projects and increase costs. “Queensland builders are ready to deliver, but too many projects are slowed by infra-structure constraints and delays outside their control,” Mr Roberts said. “Targeting Priority Development Areas such as Mount Peter, Southern Thornlands and Waraba is a positive step that will help bring forward new housing opportunities in key growth regions. “Any investment that helps unlock land, bring forward essential services and get homes to market sooner will make a real difference for Queensland first home buyers, and ease broader supply constraints. “Getting the fundamentals right – land, infrastructure and approvals, is the key to improving housing affordability in Queensland,” Mr Roberts said. HIA has long advocated for coordinated action across all levels of government to boost housing supply, including planning reform, streamlined approvals, investment in infra-structure and measures to expand the construction workforce. “This welcome funding sends a clear signal to industry that governments are serious about boosting housing supply, and builders are ready to get on with the job of delivering more homes for Queenslanders.” Mr Roberts said.

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In a win for the trucking industry, the federal budget has kept the industry’s fuel tax credits despite a Productivity Commission plan to abolish the scheme. Source: Timberbiz Australian Trucking Association Chair Mark Parry thanked the Government for listening to the industry’s response to the Productivity Commission plan, which recommended phasing out fuel tax credits for on-road heavy vehicles over 10 years. “The ATA carried out a strong, evidence-based campaign to retain fuel tax credits, sup-ported by detailed modelling,” Mr Parry said. “I’d like to thank Treasurer Jim Chalmers, Transport and Infrastructure Minister Catherine King and Assistant Climate Change Minister Josh Wilson for considering the industry’s views,” he said. The fuel tax credits system reduces the effective fuel tax rate paid by trucking operators, so they pay based on the cost of heavy vehicles’ use of the roads. This is called the road user charge. The Government has temporarily reduced the road user charge to zero in response to the Iran war, but the charge is currently scheduled to go back to 32.4 cents per litre on 1 July. Mr Parry said the fuel tax credit system reduced the cost of freight for everyone in Australia, as well as our rural exporters. “Removing fuel tax credits would increase costs for industry and hard-pressed Australian households, who face continued cost of living pressures as the effect of the high fuel prices flows across the economy,” he said. “Removing fuel tax credits would also hit trucking businesses hard. They have already paid a 19% increase in fuel tax over the last three years, and the cost of diesel has increased dramatically because of the war. “Despite the industry’s success in arguing for support measures including the Fair Work Commission’s fuel cost recovery order, it will take many businesses a long time to recover. “The Government’s immediate focus should now be on considering whether to extend the temporary reduction in the road user charge for another three months,” he said. Mr Parry said the Productivity Commission’s plan would not achieve its goal of encouraging decarbonisation. “Abolishing fuel tax credits would not address the engineering reality that there is no single technology available to replace diesel engines,” he said. “Many regional communities rely on trucking operators to move and deliver all their daily necessities. Because this requires diesel engines, the commission’s approach would just be an unavoidable increase in tax. “For those businesses that do have an alternative to diesel, the effective tax increase would reduce their financial capacity to invest in new vehicles and equipment. “The ATA looks forward to working with the Government on measures that would be effective at reducing the industry emissions and Australia’s reliance on imported fossil fuels, including a voucher scheme to reduce the up-front cost of electrification or alter-native fuel options, a low carbon fuel standard to encourage the use of renewable diesel, and support for high productivity and low emission vehicles. “Measures like these would complement the Government’s very welcome fuel security and resilience plan, which will increase Australia’s diesel and jet fuel reserves to 50 days,” he said.

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The New Zealand Timber Industry Federation (NZTIF) says the recently concluded Free Trade Agreement (FTA) with India is already delivering encouraging early results, with increased enquiry levels being reported by New Zealand sawmills. Source: Timberbiz NZTIF members are experiencing a noticeable uplift in interest from Indian buyers for New Zealand sawn timber products, signalling growing market confidence and improved access following the agreement. “We are already seeing tangible benefits from the New Zealand – India FTA,” said NZTIF. “Sawmills are reporting a rise in enquiries for sawn product from India, which is a positive early indicator of demand growth in what has the potential to become significant and expanding market.” India represents a major opportunity for New Zealand’s timber industry, driven by strong construction demand, urbanisation, and an increasing preference for sustainably sourced wood products. NZTIF noted that while it is still early days, the immediate lift in enquiries demonstrates the importance of trade agreements in unlocking new opportunities for New Zealand manufacturers and exporters. “These early signals reinforce the value of the agreement for the forestry and wood processing sector. Continued engagement, alongside strong industry capability, will be key to converting interest into long-term trade relationships,” NZTIF said. The Federation will continue to work with members and government to maximise the benefits of the agreement and support the growth of New Zealand’s timber exports into India.

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Now that South Australia’s $16 million Forestry Centre of Excellence is complete, it is putting Mount Gambier on the international map of forestry research, innovation and collaboration. Source: Timberbiz A special showcase was underway at the Centre last week, providing industry, stakeholders and policymakers with the opportunity to experience first-hand the education, training and research precinct. “Timber remains our most important sustainable construction material,” said Professor Jeff Morrell Director of the Forestry Centre of Excellence. “The showcase shows how the Centre is already helping improve sound management and processing of this critical national resource. “The Centre’s first showcase highlights our many industry-supported research projects while providing guidance for future research directions to help the Green Triangle Region remain a leader in plantation forestry.” The program included field demonstrations, networking, and industry research presentations, featuring keynote speeches, applied research case studies, and sessions focused on key issues shaping the future of Australia’s plantation forestry sector. Attendees gained insights into cutting-edge work supporting the sustainability of the forestry sector, with discussions covering new technologies to improve grower productivity, timber processing innovation, climate resilience, silviculture, forest health monitoring, biosecurity, and workforce safety. The centre is a key project of the Malinauskas Labor Government in its long-term commitment to deliver stronger forest and timber industries for South Australia. “The Forestry Centre of Excellence is an impressive space that will play an important role in the future of our state’s forestry sector,” south Australian Premier Peter Malinauskas said. “This purpose-built precinct demonstrates our commitment to strengthen our multi-billion-dollar forestry sector by supporting innovation, research and skills development. “It brings together local, national and international experts across forestry research and development, enhancing the region’s role as a global leader in the sector. “By investing in projects like this, we are ensuring South Australia remains at the fore-front of industry innovation, supporting local jobs, and building a stronger and more self-sustainable economy.” The Centre of Excellence brings together government, industry and research partners in a 10-year collaboration led by the State Government and Adelaide University, sup-porting innovation, sustainability and workforce capability across one of Australia’s most important plantation forest regions in the Limestone Coast. Major works were completed in February and since then a new research lab and remaining offices and meeting rooms have been delivered and fully fit-out. Funding for the Forestry Centre of Excellence is part of a $21 million investment by the Malinauskas Labor Government over the past four years into the forestry sector. The building was constructed using plantation timber from the region and showcases a variety of timber products, including cross-laminated timber (CLT), engineered hardwood, and panelling. The facility accommodates the Green Triangle Forest Industries Hub and Tree Breeding Australia, strengthening collaboration across research, education and industry and reinforcing Mount Gambier’s role as a national centre for forestry innovation. The Forestry Centre of Excellence was previously operating since 2024 within temporary accommodation but is now permanently based alongside Adelaide University Mount Gambier, the Mount Gambier Technical College and Mount Gambier TAFE, securing strong collaborative pathways between research, skills development and industry.

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Forest & Wood Communities Australia Chair Steve Dobbyns says the NSW Government’s justification for the Great Koala National Park is increasingly contradicted by its own scientific evidence and appears to be driven more by carbon credit generation than koala conservation. Source: Timberbiz “The NSW Government’s Environment Minister Penny Sharpe continues to promote the Great Koala National Park as essential for koala conservation, yet its own scientific evidence does not support the claim that regulated native forestry is causing widespread koala decline on the Mid North Coast,” Mr Dobbyns said. “Instead, the proposal is increasingly being driven by the prospect of carbon credits under the proposed Improved Native Forest Management (INFM) methodology – a scheme that raises serious concerns about carbon leakage, displaced timber production and questionable net climate benefits.” Mr Dobbyns said years of NSW Government-funded research failed to support the political claim that ending native forestry would “save koalas”. “Research undertaken by NSW DPI Forest Science and reviewed through the NSW Natural Resources Commission found no statistically significant decline in koala density following selective timber harvesting in north-east NSW state forests,” he said. “The NRC reported koala densities remained stable in harvested forests, koalas continued using harvested areas after operations, and any declines observed during the study period were more strongly associated with drought and climate stress, particularly across the National Park estate. “Published peer-reviewed research reached the same conclusion – regulated native forestry operations in north-east NSW did not reduce koala density.” Mr Dobbyns said the NSW Baseline Koala Survey further confirmed koalas remain widespread throughout production forests on the Mid North Coast with estimates of 274,000 koalas across the state (with a 95% confidence interval of 231,000–320,000). “This is the critical point the Government keeps ignoring – its own science demonstrates koalas and regulated forestry are already coexisting across the landscape,” he said. “The assertion that state forests must be converted into national parks to prevent koala extinction is simply not supported by the available evidence.” Mr Dobbyns also noted that more than half of the 176,000 hectares of state forest earmarked for inclusion in the Great Koala National Park is already managed primarily for conservation through existing environmental exclusions, old-growth reserves, rainforest protections, stream buffers and conservation zoning and reserve systems. “A large proportion of these forests were already effectively protected from harvesting activity,” he said. “The public is being led to believe all of this forest is under intensive logging pressure, which is simply untrue.” Mr Dobbyns said the Government had now explicitly linked the park’s creation to the proposed INFM carbon methodology, exposing what he described as the “fundamental flaw” in the proposal – carbon leakage. “Stopping native forestry in NSW does not stop Australia needing timber,” he said. “We will still need hardwood for construction, pallets, poles, flooring, fencing and packaging. Since harvesting has halted across these forests, that demand has simply shifts elsewhere. “That ‘somewhere else’ includes increased logging on neighbouring private property, increased pressure on remaining state forests, interstate harvesting, greater reliance on imports from countries with weaker environmental standards and substantially higher transport emissions. “In carbon accounting this is known as leakage – and it can completely undermine the claimed climate benefits of the project.” Mr Dobbyns said the Government was effectively proposing to stop harvesting in NSW state forests, claim carbon credits for “avoided emissions”, while timber production and associated emissions simply move elsewhere to meet unchanged demand. “If replacement timber comes from other native forests, imported hardwood products or more emissions-intensive materials like steel, concrete and plastics, then the claimed emissions reductions may be entirely negated,” he said. “The atmosphere does not care whether emissions occur in NSW, Queensland, Victoria, Southeast Asia or South America. “A carbon project that simply exports timber production and emissions elsewhere is not delivering genuine global abatement.” Mr Dobbyns said the proposal also ignored the role of sustainably managed native forests and harvested wood products in long-term carbon storage. “Under sustainable forestry systems, harvested forests regrow, more carbon is absorbed and timber products continue storing carbon for decades,” he said. “Meanwhile, alternative materials such as steel, aluminium and concrete carry substantially higher embodied emissions.” Mr Dobbyns warned the proposal risked destabilising regional economies across the Mid North Coast. “The Great Koala National Park increasingly appears to be based on monetising public forests through carbon credits rather than evidence-based conservation,” he said. “That risks undermining regional manufacturing jobs, destabilising timber supply, increasing reliance on imports and reducing Australia’s sovereign hardwood capability.” “All while the Government’s own science shows koalas remain present in managed forests and that broader threats such as bushfire, drought, disease, dog attacks, cars and habitat fragmentation are more significant pressures.” Mr Dobbyns said Forest & Wood Communities Australia supported genuine conservation measures based on evidence, not ideology. “Protecting high-value habitat and improving koala outcomes are legitimate goals,” he said. “But the current proposal increasingly relies on a simplistic political narrative — stop forestry, save koalas, generate carbon credits. “The evidence does not support that framing.” “A more credible approach would focus on targeted habitat protection, stronger fire management, plantation expansion, continued ecological monitoring and sustainable multiple-use forest management. “Otherwise, the Great Koala National Park risks becoming less a conservation initiative and more a carbon-credit land-use transfer with uncertain climate benefits and significant regional economic consequences.”

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ForestrySA has appointed South Australia Forest Products Association’s Nathan Paine as its new CEO. Mr Paine will start in his new role on 22 June following five years as CEO of the South Australia Forest Products Association where he has been highly successful in raising the profile of the state’s sustainable plantation industry. Source: Timberbiz His appointment by the ForestrySA Board follows a comprehensive recruitment process that attracted a significant field of highly qualified candidates. It comes amid a period of leadership changes in both the Australian Forest Products Association and the Tasmanian Forest Products Association. AFPA CEO Diana Hallam recently resigned to pursue other interests and Tasmanian Forest Products Association CEO Nick Steel has indicated he will not renew his contract after six years leading Tasmania’s peak body. ForestrySA says Mr Paine is well-placed to lead the organisation in its management of more than 10,000 hectares of sustainable pine plantation in the Mount Lofty Ranges, and its stewardship and protection of the more than 16,000 hectares of native forest in the Mount Lofty Ranges and Limestone Coast regions. “ForestrySA plays a critical role in the management of South Australia’s forest industries, from the Adelaide Hills where pine forests are both valued recreational spaces and productive plantations, to the forest industry powerhouse of the Limestone Coast region,” Mr Paine said. “With forecast demand for wood fibre expected to quadruple over the next 25 years, there is a need and an opportunity to grow ForestrySA’s plantation estate in order to meet that demand. “The opportunity for the state’s forest industries is not just to grow the forest estates that will build the houses of tomorrow, but also to educate the community about the vital importance of timber products in our economy.” Forest Industries Minister Clare Scriven said she looked forward to continuing their work together in growing SA’s forest industries. “Nathan has been outstanding in his five years as CEO of the South Australian Forest Products Association, and his depth of knowledge of timber industries and insights into forest industries more broadly will be of significant value when it comes to managing the state’s pine plantations,” she said. “As South Australia continues to grow both its economy and its ambition into the future, I am confident Nathan Paine will be an effective and reliable partner in the delivery of stronger and more prosperous forest industries across the state.”

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