Wood Construction and Wood Products

The goal of Prime Minister Petteri Orpo's government program is to diversify the use of wood and increase its value-added processing. Promoting wood construction and the wood products industry serves several objectives, such as mitigating climate change, advancing the circular economy, supporting sustainable business and housing policies, and enhancing the vitality of rural areas.

Using wood reduces the carbon footprint of construction when considering the entire lifecycle of wood, from material production to construction, usage, and recycling. In Finland, the greatest growth potential for wood construction lies particularly in apartment buildings and public construction. Additionally, the use of wood materials can be further increased in energy renovations of facades, additional floor construction, and infill construction.

Promoting the Use of Wood in Construction

Under the leadership of the Ministry of the Environment, a Wood Construction Program was implemented from 2016 to 2023. The program aimed to increase the use of wood in urban construction, public construction, and large wood structures, such as halls and bridges. It promotes the use of wood in construction by enhancing industry expertise and providing information on wood construction, such as the significance of the carbon footprint, health benefits, and safety in construction. In recent years, building regulations, such as fire codes and technical construction requirements, have also been updated as part of the Land Use and Building Act.

Promoting the use of wood in public construction was one of the key focuses of the Wood Construction Program. National targets for public wood construction were published in September 2020. These targets were set for the share of wood in all new public construction and for the most significant building types by construction volume. In 2022, the target market share for wood construction was 31% of all public construction, with a goal of 45% by 2025.

Promoting the use of wood in products that store carbon for long periods was also one of the themes of the land use sector's climate action plan from 2019 to 2024.

Finland Produces About 10 Million Cubic Meters of Sawn Timber Annually

Processing domestic wood has a positive impact on Finland's economy and employment. The wood products industry employs approximately 20,800 people in Finland (EY, Economic Impacts of the Forest Industry in Finland). The gross production value of Finland's wood products industry was about 8.9 billion euros in 2021 (most recent data).

In 2023, Finland produced 10.4 million cubic meters of sawn timber. Domestic consumption of sawn timber is strongly influenced by construction, with about four-fifths of the sawn timber used in Finland being utilized in construction.

Export Revenues from the Wood Products Industry

The wood products industry plays a significant role in generating export revenues for Finland. The main export products of the wood products sector have long been sawn timber and plywood. The primary export market has traditionally been Europe, with significant markets also in North Africa (especially Egypt), China, and Japan.

About 70% of the total capacity of the sawmill industry is exported abroad. In 2023, the production of sawn timber was 10.4 million cubic meters, with exports amounting to 8.4 million cubic meters (81%). The export value of the wood products industry was approximately 3 billion euros in 2023.

Source: Natural Resources Institute Finland

Statistics

Forest industry statistics
Sawmills statistics

Further information

Kaisa Pirkola, Ministerial Adviser
Ministry of Agriculture and Forestry, Natural Resources Department, Metsä- ja biotalousyksikkö Telephone:0295162350 Email Address: firstname.lastname@gov.fi