FINLAND: NIB to fund Keitele Timber’s investments in mechanical wood processing facilities

Photo: Keitele Group

(PRESS RELEASE) HELSINKI, 28-Mar-2019 — /EuropaWire/ — NIB to finance Keitele Timber’s investments in mechanical wood processing facilities. The agreement is EUR 15 million loan with maturity of ten years.

Keitele Timber will use the loan from NIB to invest in tangible capital; machines, flue gas scrubbers, dryers for sawdust and bark, as well as a pellet factory. Keitele Timber is part of Keitele Group that runs three sawmills in Finland.

Keitele Group uses approximately 90–95% sourced wood from sustainably managed (PEFC-certified) forests in Finland. Glued laminated timber (glulam) is the main product from wood processing. Glulam can be used in construction as an alternative to steel or concrete. Glulam production requires less energy compared to the manufacture of other building materials. Also, wood structures bind CO2 during the life cycle of buildings. Keitele Group produces wood products and lumber for the construction industry and manufacturing of furniture, doors, windows, etc.

Keitele Group produces biofuels from the by-product of lumber production and wood processing. The biofuels 75% of which is sold to regional energy suppliers for energy generation.

Keitele Group operates and provides employment opportunities in small communities in Finland. The company exports over 90% of its wood products to around 40 countries, with Asia—especially Japan—being an important market.

NIB President & CEO, Henrik Normann, comments: “We can expect that interest in this sustainable construction material will only increase in the future. The forest-based economy offers both employment and growth opportunities for our member region”

A family run business, Keitele Forest Oy was founded in 1981. It is one of Finland’s largest companies operating in mechanical wood processing. Keitele Group’s production facilities are located close to timber reserves in Keitele in Northern Savonia, Alajärvi in South Ostrobothnia and Kemijärvi in Lapland, Finland.

An international financial institution, NIB is owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. NIB finances private and public projects in and outside the member countries. The bank has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

SOURCE: The Nordic Investment Bank (NIB)