Metsa Group is investing $US487.7 million (300 million euros) in a Kerto LVL wood product mill.
The mill will produce beam and panel products used in the construction industry.
Kerto LVL products significantly reduce the carbon footprint of buildings compared to many other materials.
Production will begin in late 2026.
The mill’s annual production capacity is approximately 160,000 cubic metres, which represents a 50 per cent increase in the company’s total Kerto LVL capacity.
Kerto LVL (laminated veneer lumber) is a construction material which combines material efficiency with the high added value of wood.
Kerto LVL’s excellent technical performance makes it suitable for very versatile construction uses such as elements and modular construction.
Metsä Wood executive vice president, Jaakko Anttila said most of the carbon footprint of construction comes from building materials.
“The construction industry is now seeking more sustainable alternatives, so we are seeing growing interest in construction material based on renewable raw materials,” he said.
The new Kerto LVL mill will be on the Äänekoski integrated mill site, which harnesses the synergies such as energy production, logistics and mill services.
The integrated mills can utilise 100 per cent of the side streams produced in the production of Kerto LVL, producing the maximum possible added value from the valuable raw material.
The new mill will have a direct employment impact of around 150 new jobs.