Koskisen, in collaboration with Kesko, the biggest trading sector operator in Finland, has piloted the use of discarded wooden packaging materials – such as pallets – generated in the retail distribution chain as raw material for chipboard production. During the pilot, Koskisen developed a unique recycled wood cleaning process, the first of its kind in Finland. Thanks to this breakthrough, the chipboard made with recycled material is as clean as chipboard made from virgin wood.

“Increasing the use of recycled material in our chipboard products is one of our key sustainability goals. The recycled raw material cleaning process developed during the pilot has resulted in an exemplary circular economy product, which matches the performance and properties of chipboard made from virgin wood chips and sawdust. Maintaining product quality was one of the core objectives of the pilot,” says Tom-Peter Helenius, Director, Panel Industry at Koskisen.

According to Helenius, even the standard chipboard is a great circular economy product, as it is made from side streams of Koskisen’s Panel and Sawmill Industry operations. This new product incorporating recycled material broadens the range of circular economy products. While the share of recycled material in the finished product is currently a few percent, Koskisen estimates it will be able to utilize a significant amount in production — about one truckload of recycled material each day.

“It’s great to contribute to practical circular economy solutions. Until now, Finland has lacked an industrial-scale recycling solution for end-of-life wood. By increasing the share of recycled wood in our products, we extend the life cycle of recyclable materials and use them to sequester carbon from the atmosphere in long-lasting wood products,” Helenius adds.

Construction and demolition waste is the second-largest waste stream in Finland. In 2022 alone, the construction sector generated 248,000 tonnes of wood waste.* In practice, most of this wood waste has been incinerated in Finland.

Kesko’s Building and Technical Trade Division has been actively seeking a sustainable solution for recycling end-of-life wood for several years.

“We are constantly developing smarter ways to produce, transport, and use consumer goods. The solution piloted here is new and exceptional in the Finnish context. The results demonstrate that recycling end-of-life wood can be economically viable and add value for both companies. At the same time, we bring more sustainable circular economy products to consumers,” adds Antti Auvinen, Director, Procurement and Responsibility at Kesko's Building and Technical Trade Division.

Koskisen and Kesko aim to integrate the pilot into their regular raw material stream and production process during summer 2025.

*Source: Finnish environmental administration portal ymparisto.fi

For more information, please contact:
Sanna Väisänen, Director, Sustainability and Communications, Koskisen Corporation
sanna.vaisanen@koskisen.com
Tel. +358 20 553 4563

Koskisen is an international wood processing specialist known for its agility and ability to listen to the customer. We utilise our valuable wood raw material as thoroughly as possible, up to the last particle of sawdust. At the same time, we bring the best carbon narrative to life: We manufacture high-quality and sustainable products that store carbon for decades. The Group’s revenue in 2024 was EUR 282 million. Read more: koskisen.com