Wednesday, September 24, 2025
Metsä Wood, a division of the Finnish forest industry group Metsä Group, is on track with the construction of its new Kerto LVL (Laminated Veneer Lumber) mill. Located in Äänekoski, Finland, this ambitious €300 million investment is nearing a critical milestone as test runs for the first production line are scheduled to commence in October, with full-scale production expected by the end of 2026. This project is poised to significantly bolster the company’s capacity and innovative strength, sending a clear message of long-term confidence in the European woodworking and construction industries.
The construction of the mill, which spans a total area of 50,000 square meters with a production space of 45,000 square meters, is proceeding on a strict and ambitious timeline. Project Director Eero Lampola noted that the goal is to begin extensive trial operations toward the end of winter to ensure the mill is ready for its scheduled launch. A key element of the project’s success thus far has been its exemplary safety record. Despite the complex, parallel activities of construction crews and equipment installation teams, the focus on preventative measures and a proactive safety culture has resulted in a remarkably low accident rate.
This major investment is particularly significant given the current, and at times challenging, economic climate in the European construction sector. While residential building has experienced a noticeable slowdown, the long-term outlook for advanced wood-based materials like Kerto LVL remains highly positive. Ulla Kivistö, VP of Sales for Kerto LVL in Central Europe, highlights that despite persistent market uncertainty, the global popularity of timber construction is on an upward trajectory. This is further supported by increasingly stringent European regulations that favor wood-based solutions for their environmental benefits. Kivistö also cautiously notes recent signs of a slow but steady recovery in the construction industry, reinforcing the strategic timing of the new mill.
The woodworking industry stands to benefit immensely from this expansion. Kerto LVL, a high-performance engineered wood product, is made from layers of thin, rotary-peeled softwood veneers that are glued together to form a continuous billet. This process creates a material with an exceptional strength-to-weight ratio, dimensional stability, and predictability, making it a reliable and versatile alternative to traditional sawn timber, steel, and concrete. The new Äänekoski mill will produce a variety of Kerto LVL products, with an anticipated annual capacity of 160,000 cubic meters, representing a substantial increase in Metsä Wood’s overall output.
Beyond production, Metsä Wood is making a targeted investment in the future of wood products by simultaneously constructing a new research and development laboratory on the same site. This facility will be dedicated to advancing veneer-based wood products and other innovative engineered materials. By integrating R&D with production, the company aims to accelerate the development of next-generation solutions, ensuring Kerto LVL and its related products continue to meet and exceed the evolving demands of the construction sector. This strategic move cements Metsä Wood’s position as a leader in material science and an innovator at the forefront of sustainable building.
The expansion also has a positive ripple effect on the local and regional economy. Once fully operational, the new mill is expected to create approximately 150 direct jobs, with an additional 200 jobs generated in the surrounding value chain. The construction phase alone has an estimated employment impact of around 1,000 person-years. Furthermore, the mill will utilise roughly 400,000 cubic meters of log procured from sustainably managed Finnish forests, reinforcing the project’s commitment to responsible forestry and a circular economy.
The growing adoption of timber construction globally is driven by its ability to significantly reduce the carbon footprint of buildings. Unlike materials like concrete and steel, which are highly energy-intensive to produce, wood products naturally store carbon throughout their lifecycle. Laminated veneer lumber’s material efficiency and prefabrication potential also lead to reduced on-site waste and faster construction times, making it a compelling choice for a wide range of applications, from load-bearing structures in residential and commercial buildings to industrial uses.
In a market seeking both performance and sustainability, the new Äänekoski mill represents a vital step forward. By increasing the supply of a high-demand, low-carbon material and fostering continuous innovation through dedicated R&D, Metsä Wood is not only securing its own future but also providing the woodworking and construction industries with the essential tools to build a more sustainable world.
Read more news on: construction, veneer, sawn timber
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Tags: engineered wood, laminated veneer lumber, Metsä Wood, Research and Development, resource efficiency
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