The daily life of a startup is a constant stream of problem-solving. We tackle strategic questions, solve customer challenges, and address technological and product development issues – all while contributing our part to tackling global problems. At Fiberwood, we develop solutions to mitigate climate change and promote sustainability by offering our clients ecological and innovative products and material solutions.
As energy crises follow one another, burning wood and biomass for energy is wasteful, and piling up industrial side streams in landfills is no better. Especially in Finland, where forestry plays a significant role, these industrial by-products must be utilised more wisely. Did you know that over half of the world’s energy is consumed for heating and cooling? It’s a topic that is discussed surprisingly little.
Developing sustainable materials is not a sprint; it’s a marathon. Product development processes take 4–5 years to create a prototype and typically 10–15 years to grow into a significant business. Just think about the sheer number of problems solved during that time! This is why we emphasise collaboration – not only with our valued customers in the construction and packaging industries but also with stakeholders across the sector. Builders, architects, designers, and consumers must know that low-carbon alternatives exist. Change does not happen alone.
What Made 2024 Significant?
1. Funding to Accelerate Growth
In May, we secured a total of €7.7 million in growth funding, enabling us to prepare for commercialisation and pursue international growth. Our venture capital investors, Metsä Spring and Stephen Industries, along with public financiers, once again demonstrated their firm trust in our vision.
2. Järvenpää Test Line: A Step Towards Industrial Production
Establishing a new test production facility and R&D centre in Järvenpää was one of our most significant achievements of the year. The test line, set to be completed next year, will enable the production of natural fibre boards that meet commercial requirements for our customers’ pilot projects, such as test buildings. At the test plant, we focus on product development, refining product concepts, and ensuring industrial scalability before transitioning to large-scale production. This groundwork minimises risks from the outset.
3. Team Growth and Strengthening Expertise
We are building a team of problem-solvers who innovate and challenge conventional practices. This year, our team grew by five new members, enhancing our business development capacity, product development, and production team. As our test machine and product development projects progress, we continue to recruit and train professionals to implement and operate future production technologies. Interest in our open positions has been delightful; nearly 100 people applied for a machine operator role. We are now working with a group of like-minded individuals – a team of problem-solvers.
There’s More to Solve on a National Level
Finland faces a shortage of new, scalable businesses. Current growth companies in the wood and natural fibre sectors have emerged mainly from universities and research institutions like VTT. But where will the next wave come from?
Corporate Venture Capital (CVC) investments are rising in Europe, accounting for a quarter of all startup investments. However, Finland still lacks sufficient capital to invest in startups, especially the more significant sums needed for international scaling. Additionally, Finnish corporations have slowly embraced bold investments in deep-tech developers. Without this funding and support, we cannot fully capitalise on the growing potential of Finnish innovations.
Wood Fibre-Based Innovations – Could Finland Lead the Way?
Wood fibre-based solutions can potentially transform the forestry industry’s value chain in many ways. The current value-added rate of less than €1/kg in Finland’s forestry sector is far too low. If we could reach even €2–3/kg, the same amount of harvested wood would bring up to three times the economic benefit. At the same time, we would improve the availability of wood in our forests and ease price pressures on wood.
The challenges we face are far from over, but now is the time to pause briefly. I want to extend my heartfelt thanks to our entire team, customers, partners, and everyone who has been part of this significant year with us.
Wishing you a peaceful Christmas and a prosperous New Year!
Tage Johansson
CEO, Fiberwood Oy