Thursday, July 3, 2025
Koskisen, a leading wood processing company, has teamed up with Kesko, Finland’s largest trading sector operator, to pilot an innovative solution for using discarded wooden packaging materials—such as pellets—generated throughout the retail distribution chain as raw materials for chipboard production. This groundbreaking collaboration marks a significant step forward in the country’s efforts to boost sustainability in the woodworking and construction industries by making use of recycled wood products.
Koskisen’s successful development of a new and unique wood cleaning process is at the heart of this pioneering project. The process, which is the first of its kind in Finland, enables the company to clean discarded wooden packaging materials to the extent that the resulting chipboard is of comparable quality to that made from virgin wood. This achievement has significant implications for the future of recycled wood in chipboard production, offering a promising solution for a circular economy.
Recycled wood in chipboard production
The pilot project aimed to increase the use of recycled materials in Koskisen’s chipboard production line, in line with the company’s sustainability goals. Tom-Peter Helenius, Director of Koskisen’s Panel Industry, emphasised the importance of maintaining product quality while incorporating recycled materials. He stated, “Increasing the use of recycled material in our chipboard products is one of our key sustainability goals. The recycled raw material cleaning process developed during the pilot has resulted in an exemplary circular economy product, which matches the performance and properties of chipboard made from virgin wood chips and sawdust.”
Koskisen’s regular chipboard products have already been a prime example of circular economy principles, as they are made from side streams from the company’s own panel and sawmill industries. However, the introduction of recycled wood into the process further expands Koskisen’s range of sustainable products, providing a valuable contribution to Finland’s broader sustainability efforts. While the share of recycled material in the new products is currently small, Koskisen projects that it will be able to utilise significant quantities—equivalent to about one truckload of recycled material each day.
Expanding the sustainable circular economy
The collaboration between Koskisen and Kesko also addresses a significant environmental issue in Finland: construction and demolition waste. In 2022, the construction sector in Finland generated a staggering 248,000 tonnes of wood waste, making it the second-largest waste stream in the country. Historically, much of this wood waste has been incinerated, contributing to the carbon emissions associated with waste disposal.
By turning discarded wood packaging into a raw material for chipboard production, Koskisen and Kesko are helping to extend the lifecycle of recyclable materials, reducing the need for new raw materials and minimising the carbon footprint associated with manufacturing processes. In doing so, the two companies are playing a key role in promoting the circular economy, where products and materials are reused and recycled as much as possible.
Tom-Peter Helenius highlighted the environmental benefits of this initiative, saying, “It’s great to contribute to practical circular economy solutions. Until now, Finland has lacked an industrial-scale recycling solution for end-of-life wood. By increasing the share of recycled wood in our products, we extend the life cycle of recyclable materials and use them to sequester carbon from the atmosphere in long-lasting wood products.”
A new approach to recycling end-of-life wood
Kesko’s involvement in the project underscores the growing importance of sustainability within Finland’s retail and construction industries. The company’s Building and Technical Trade Division has long been working to find sustainable solutions for recycling end-of-life wood, and this partnership with Koskisen offers a significant breakthrough. Antti Auvinen, Director of Procurement and Responsibility at Kesko, commented on the potential of the project: “The solution piloted here is new and exceptional in the Finnish context. The results demonstrate that recycling end-of-life wood can be economically viable and add value for both companies. At the same time, we bring more sustainable circular economy products to consumers.”
The collaboration between Koskisen and Kesko is more than just a response to environmental challenges—it is a demonstration of how companies can drive innovation and contribute to a more sustainable future. By integrating the recycled wood cleaning process into their regular raw material stream, the two companies aim to make this practice an ongoing part of their production processes, with full integration expected by the summer of 2025.
Towards sustainable wood products
Koskisen’s commitment to sustainability is evident in its broader goals, which include manufacturing high-quality products that not only meet customer needs but also help to address global environmental challenges. The company has long been a leader in wood processing, making efficient use of its raw materials, from sawdust to full-sized logs. By incorporating recycled materials into its product range, Koskisen is further demonstrating its ability to create durable, sustainable wood products that contribute to carbon sequestration.
This shift towards recycled materials represents a significant step in transforming the woodworking industry into a more sustainable and circular economy-driven sector. As Koskisen and Kesko move forward with their pilot and plans for large-scale implementation, their success will likely inspire other companies within Finland and the wider woodworking industry to adopt similar recycling practices.
Koskisen and Kesko’s plans for Summer 2025
The partnership between Koskisen and Kesko is poised to set a new standard for sustainable practices in wood processing and chipboard production. As both companies work to integrate this innovative recycling process into their regular operations, they are playing an active role in building a more sustainable and circular economy for Finland. With their eyes set on the summer of 2025 for full-scale integration, the success of this pilot project could have far-reaching implications for the industry and help shape the future of wood product manufacturing on a global scale.
Koskisen’s collaboration with Kesko marks a pivotal moment in Finland’s journey toward a more sustainable, circular economy. By pioneering a process that uses recycled wood to produce high-quality chipboard, the companies are addressing both environmental concerns and market demands for sustainable building materials. As they move toward full integration of this solution, Koskisen and Kesko are setting a powerful example of how businesses in the woodworking industry can contribute to a greener, more sustainable future.
Read more news on: Koskisen, packaging, recycling, chipboard, circular economy, sustainability
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