Monday, June 30, 2025
The domestic value chain of Sweden’s forest sector, especially in the SCA company, makes it stand out in the country’s export-focused economy. According to Nima Sanandaji, who wrote a paper on the economic value of forestry in northern Sweden, not all exports are created equal. “To develop sparsely populated regions, it is beneficial to bring in money from foreign customers and finance jobs from planting the forest to harvesting, transporting, and processing it in local industries,” says Nima Sanandaji.
In Sweden, the forest sector employs 140,000 people nationwide, which accounts for little more than 2% of all jobs in the national economy. The majority of the raw forest material is produced domestically, and industrial forest products are imported in very small amounts. Thus, the forest sector plays a major role in Sweden’s trade balance. According to a recent Swedish-language research written by Nima Sanandaji, an engineering PhD candidate, the four northernmost counties account for about SEK 27 billion of Sweden’s over SEK 140 billion in net exports. These counties have a population of only 900,000, which indicates that northern Sweden’s per capita net exports are exceptionally high.
“There is roughly three times more net export per person in northern Sweden compared to the country as a whole. In many ways, a well-functioning forestry sector is the cornerstone of prosperity and welfare financing for the entire country, especially in forestry-dominated regions. The conditions for forestry thus affect the labor market, the business climate, and public services,” says Nima Sanandaji.
As Sanandaji’s report points out, one often-overlooked consequence of the forest business is that it adds value to other industries. About 19,100 jobs in Norrbotten, Västerbotten, Västernorrland, and Jämtland are related to the forest industry; 10,800 of these are directly related to the sector, while 8,300 are regarded as indirect jobs in other industries. Thus, the sector’s contribution to the creation of jobs in other sectors is almost equal to that of its own.
“It’s easy to forget that the forest industry, which brings in significant revenue from abroad, is a purchasing power hub. Without this revenue, it becomes difficult for individual forest owners to sell timber. The industries are, in a way, the engine that enables income for forest owners, various service providers in the value chain, and logistics companies,” says Nima Sanandaji.
Is there a tangible way to boost the value creation of the forest?
“Absolutely. One key is to avoid excessively restricting access to raw materials through overregulation. We need effective regulations that ensure sustainability while still promoting the harvesting of renewable raw materials. That’s also crucial for transitioning more products toward renewable alternatives,” says Nima Sanandaji.
“Infrastructure is also of critical importance. It is expensive to transport heavy goods within the region, and the more efficiently this can be done, the better for Sweden as a whole. Road maintenance and investments in freight rail, for example, from inland areas to the coast, are very important,” says Nima Sanandaji.
About SCA
SCA was founded in 1929, and its headquarters are located in Sundsvall, Sweden. SCA has a big impact on Swedish society as an employer and has strong relationships to the northern areas where its businesses and industries are located. They use renewable natural resources to produce jobs, construct infrastructure, and make money from exports. The Group is committed to creating a long-lasting company that benefits its clients, staff, and investors. They offer forest owner services, pulp, packaging paper, wood products, renewable energy, and efficient modes of transportation.
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