Goals of Advocacy
The sawmill industry is a matter of fierce international competition: where in the world wood products can be manufactured profitably and competitively. Wood products are exported from Finland to over 70 countries. Important markets for Finland are the EU area, Japan, China, Egypt and the United Kingdom. Exports account for approximately 70% of production and the annual export value is approximately 2–3 billion euros.
Sawmill industry companies have made and are making investments that strengthen their competitiveness. The companies are committed to operating in Finland for decades to come, but the operating environment must be maintained in good condition.
The Finnish Sawmill Industry Association’s advocacy goals aim to ensure that Finland is an internationally competitive operating environment. Regulation must not cause changes that weaken the competitiveness of the sawmill industry, and thus the possibilities for sustainable growth and a green transition.
The availability of logs is the most important issue in the operating environment
The availability of wood must be taken into account in decision-making and in assessing the impacts of decisions. If availability decreases due to regulation, the competitiveness of the sawmill industry will also decrease.
The procurement of wood is the single most significant cost item for sawmill companies, up to 75% of costs. If the availability of wood decreases, it will increase costs.
Metsähallitus’ forests are important to many sawmill companies and the felling volumes in them must at least remain at the current level or increase moderately.
The primary goal in safeguarding biodiversity is to strive to combine the economic use of forests, wood production and strengthening biodiversity. Forest nature protection on private land must be implemented through voluntary protection.
Climate policy must not lead to felling restrictions. There is a global demand for wood products and therefore felling restrictions in Finland would lead to a leakage of felling to, for example, Sweden and Russia.
Forest growth must be invested in consistently. For example, promoting forest fertilization and using processed forest planting material effectively strengthens forest growth. Forest growth is good for both industry and the climate.
The use of wood for energy should not be weakened for political reasons.
Almost every industrial-scale sawmill has a heating plant for drying products, and some have a district heating network connected to a municipal operator.
The energy use of wood is a central part of the business model of companies in the sawmill industry. Logs yield 50% sawn timber, 30% wood chips, 10% sawdust and 10% bark. For sawdust and bark, energy use is the most important end-use on an industrial scale. An end-use must be found for all by-products.
If there were a tax on the energy use of wood or its position were weakened by regulation, it would be a direct weakening of competitiveness, as such a tax is not in use in the Finnish sawmill industry’s competitor countries.
Favourable regulation for new uses of sawmill side streams
The sawmill industry has investigated new potential end uses for side streams through dozens of projects.
The projects have focused in particular on sawdust. So far, there have been no significant commercial breakthroughs.
According to current information, the greatest potential for new uses is in transport fuels.
More national and EU-level instruments would be needed to enable wood-based transport fuel projects. In addition, EU-level regulation should support and enable the development of wood-based transport fuels even better.
Logistics cost increases must be prevented and investment in the road network must be made
Logs for the sawmill and finished wood products to export ports are mainly transported by heavy transport. In addition, exports are made to Europe, Africa, the Middle East and Asia, and thus significant costs are also generated through maritime transport. Logistics costs are one of the key areas of cost competitiveness for companies in the sawmill industry.
All regulations must take into account the effects of new decisions on the international cost competitiveness of the sawmill industry. The costs of Finnish industry must not increase in relation to competitor countries such as Sweden.
Finland must invest in improving the condition of the lower road network and significantly reduce the proportion of roads in poor condition. The sawmill industry needs a good regional road network.
Finland – a model country for wooden construction?
The use of wood in construction has decreased significantly over the past 20 years. In 2005, more than five million cubic meters of sawn timber were used for construction, while in recent years this has fallen to two million cubic meters.
At the state level, wood construction should be promoted, for example, by reforming regulations to encourage wood construction, strengthening educational resources for wood construction, and directing more incentives to wood construction.
Municipalities play an important role in wood construction. The key tools for municipalities in favor of wood construction are: 1. set ambitious carbon footprint limits, 2. record wood as part of the municipal strategy, 3. encourage climate action when allocating land, 4. offer opportunities for wood in zoning, and 5. utilize procurement and market dialogue.
Wood construction is a strong climate action. When we build more with wood, we create more technical carbon sinks and increase carbon stocks. At the local level, wooden construction also strengthens the municipality’s attraction and retention power.
Would you like to hear more about our goals?
The staff at the Finnish Sawmills Association office will be happy to answer any additional questions.
Sahateollisuus ry
Address
Säästöpankinranta 4 C 24
00530 Helsinki, Finland