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Koskisen triumphs in recycling innovation pilot competition

 Wednesday, December 10, 2025

Koskisen, Kesko, and Purkupiha have successfully piloted a solution that repurposes wooden packaging materials, like pallets, removed from the retail distribution chain as raw material for particleboard. After years of research, Koskisen developed a unique treatment process that allows particleboard made from recycled wood to match the quality of products crafted from virgin wood.

Using recycled material supports Koskisen’s sustainability goals and expands its range of circular economy products. Although the share of recycled wood in the finished product is still small at the pilot stage, Koskisen estimates it could use about one truckload of recycled material per day in production.

Kimmo Ahonen, Business Development Manager at Koskisen who has been involved since the start of the pilot, shares two significant observations highlighting the importance of the pilot and the solution developed. “The first key observation concerns the status of recycled wood. Unlike plastic, metal, or concrete, there are no EU or national-level definitions or limits for recycled wood products. Wood has traditionally been seen as a less valuable secondary material because burning it has been an easy and accepted end-use,” Ahonen notes.

Until now, Finland has lacked an industrial-scale solution for end-of-life wood, which has mostly been incinerated. The pilot results show that utilising recycled wood can be economically viable and add value. The goal is to integrate the solution into regular production once the permit process is completed at the beginning of 2026.

According to Ahonen, the second key observation is that this is a collaborative model where Koskisen and other stakeholders have carefully planned every step of the process together. While Koskisen does not aim to dominate the collection sources for recycled material, the company has invested heavily in defining and cleaning the material. “Our goal is not to create a separate recycled product but to develop more responsible solutions and prepare for future legislative changes that may require the use of recycled materials. At the same time, we aim to maintain product purity and cost-efficiency compared to virgin raw material,” Ahonen explains.

Ahonen describes the pilot and the development of this new approach as a rewarding experience, highlighting Koskisen’s core principle that not even sawdust should be wasted. For customers, the ability to recycle discarded and waste wood for long-term domestic use in particleboard could lead to significant improvements in operational efficiency. However, Ahonen emphasizes that even with recycled materials, Koskisen’s high quality standards must be upheld: “Koskisen quality must remain. That cannot be compromised.”

Koskisen’s pilot participated in the PuuLoop recycling innovation competition, won the industrial category, and placed second overall in the Puumarkkinapäivät final on October 30, 2025.

In addition, as Finland positions itself at the forefront of Europe’s bioeconomy expansion, companies like Koskisen play a critical role in supplying materials that align with climate goals, support rural livelihoods, and advance the circular economy. With policy pressure increasing across the EU to reduce emissions in construction and manufacturing, the market outlook for renewable wood products remains strong.

By combining biodiversity-conscious forestry, innovative wood processing, and strong customer partnerships, Koskisen aims to remain a reliable, forward-looking actor in the Nordic timber industry. Its long-term strategy underscores a broader industry trend: the transition from fossil-based materials toward renewable, carbon-storing alternatives is not only environmentally necessary but economically advantageous.

Read more news on: wood panel, timber industry, nordic timber, fossil, renewable products, recycling, waste wood

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