Indufor Prepared a Conceptual Business Plan for CLT Manufacturing in Finland

October 31, 2018

Indufor prepared a conceptual business plan for CLT manufacturing in Finland. The Client was a public sector actor aiming to attract investment in CLT manufacturing to develop the existing wood industry network in the target region in Finland. The objective of the study was to examine the preliminary business conditions for possible CLT production.

The assignment started with assessment of key production factors and their cost, generic traits of CLT as a product, and the end-use applications. The CLT markets and competitive situation in Finland and abroad were analysed, noting the competition against traditional concrete building in multi-storey buildings. Majority of CLT in the world is produced in Europe, Austria being the leading producer. Finnish CLT industry still lacks behind the Central-European competitors in terms of maturity and capacity, experience, chain optimization and wood use experience in multi-storey buildings. Both supply and demand of CLT are increasing globally due to many advantages, most notably health and climate benefits, compared to e.g. concrete.

Profitability and cash flow were calculated for a CLT plant. The main source of uncertainty and risk to profitability is the selling price of manufactured CLT, which seems to vary a lot depending on the quality, dimensions, market situation and degree of processing, among others. Finally, the risks in CLT investment in the case were assessed.

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Jarno Seppälä

Managing Director, Head of Forest Industry & Bio Solutions Consulting

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