9 Apr 2019
EUR 27.7 million
Energy and water
NIB and Keitele Timber have signed a EUR 15 million loan agreement to finance the company investments in facilities for mechanical wood processing. The maturity of the loan is ten years.
NIB’s loan to Keitele Timber will finance the company’s investments in tangible capital; machines, flue gas scrubbers, dryers for sawdust and bark, as well as a pellet factory. Keitele Timber is a subsidiary of Keitele Group that runs three sawmills.
Keitele Group produces lumber and wood products mainly for the construction industry and manufacturing of furniture, doors, windows, etc. Approximately 90–95% of the used wood is sourced from sustainably managed (PEFC-certified) forests in Finland. The main product from wood processing is glued laminated timber (glulam), which can be used in construction as an alternative to steel or concrete. The production of glulam requires less energy than the manufacture of other building materials. Also, wood structures bind CO2 during the life cycle of buildings.
As a by-product of lumber production and wood processing, Keitele Group produces biofuels. Almost 75% of the biofuels are sold for energy generation to regional energy suppliers.
Keitele Group operates in sparsely populated regions in Finland, providing employment opportunities in small communities. However, the products are global, as the company exports over 90% of its finished, refined wood products to around 40 countries, with Asia—especially Japan—being an important market.
“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”, says Henrik Normann, NIB President & CEO.
Keitele Forest Oy is a family run business founded in 1981 and one of Finland’s largest companies operating in mechanical wood processing. All three of Keitele Group's production facilities are located strategically close to timber reserves in Finland: Keitele in Northern Savonia, Alajärvi in South Ostrobothnia and Kemijärvi in Lapland.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.
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