Construction of a new production plant to be built in Oulu has begun. Junnikkala’s new production plant will be built in the Laanila industrial area, with excellent transport connections. The felling of the trees on the site is almost complete and construction work will begin after Easter.
The modern new plant can process logs in all sizes and the closed sawing process minimizes traffic within the sawmill area. At the sawmill’s location, significant logistical benefits are sought in terms of both the receipt of raw materials, the utilization of by-products and the transport of end products.
Architects are already designing the new production facility at a rapid pace. The foundations will be laid next summer and the properties are due to be completed by the end of the year. As soon as the properties are completed, preparations will begin for the installation of machinery and equipment, which is scheduled to take place during the spring and autumn of 2023. Equipment purchases themselves have started well in advance — about a year ago. The start-up of the production plant, the installation of automations and the tuning of the technology will take time, and in the beginning the production volumes will be very moderate. The first log should be off the lines by December 2023.
Starting a new production plant is not just about building. This is a big effort for all of us in Junnikkala. Production volumes are doubling, we need more good staff, the need for logs is rising to a much larger scale and so on. The Oulu project means that Junnikkala will grow into a completely different size class. There is a huge amount of work being done in all our sectors right now. So this is an effort for the whole company and for all the people of Junnikkala.
Kalle Junnikkala, CEO
The growth in demand for timber as a renewable raw material and the positive future outlook for the industry enable the largest investment in Junnikkala’s history.
As a family business, we have strong roots in Kalajoki and Oulainen, and our entire existence culminates in these places. Over the years, these units have built our future and also the opportunity to invest in a new production plant in Oulu. The Oulu project, in turn, will enable an even better future for our Kalajoki and Oulainen units. In the future, we will also invest heavily in the development of the Kalajoki and Oulainen production facilities. Each of our units has its own and important special features.
Kalle Junnikkala, CEO
Junnikkala further strengthens its position among the largest sawmill companies in Finland. The company’s turnover is estimated to rise to EUR 250 million per year as a result of the investment. About 90% of the new sawmill’s production will be exported from the Port of Oulu and other nearby ports to about 50 countries.
The production capacity of the sawmill under construction is 350,000 cubic meters of finished goods per year. The new sawmill uses about 700,000 cubic meters of raw material per year, of which 80% is pine and the rest is spruce. The renewable, strong-growing raw material in Northern Ostrobothnia in Junnikkala’s procurement area is valued and in demand as products processed by Junnikkala around the world.
With the new sawmill, Junnikkala Oy directly and indirectly employs more than 600 people.
