European industry is urgently seeking solutions that support both the green transition and economic growth. The publication of the EU’s new bioeconomy strategy confirmed that improved utilisation of industrial side streams is one of the defining tasks of this decade. Fiberwood’s work is built precisely on this foundation. Our position for moving the company forward is strong, and the progress we have made this year confirms it.
The new bioeconomy strategy offers a broader view of the transformation at the heart of our work. It positions bio-based materials within the green transition and anchors them firmly in circular economy principles. At its core, the strategy calls for higher value-added uses for industrial side streams and other bio-based raw materials to strengthen the sustainability of natural resources and the competitiveness of European industry. By developing insulation and packaging materials from forest-industry side streams, we are putting EU policy into practice, literally. The significant EU funding we received this year (CINEA) reflects this precise alignment.
We are progressing steadily toward our long-term vision. According to current plans, 7–8 Fiberwood plants could be operating in Northern Europe in 2033–35, converting approximately 240,000 tons of low-value side streams annually into higher-value-added products. In practice, this means the same volume of forest-industry side streams will no longer be burned for energy or sent to landfill, where they would otherwise release carbon dioxide. The climate impact of this shift is significant even on a European scale.
At the same time, this industrial model would create profitable, sustainability-driven businesses and generate new materials technology jobs in Finland and across Northern Europe.
From deep fibre understanding to mechanical wood processing
Our first industrial facility is still ahead, but in 2025, we advanced through clear, well-defined steps.
We continued to recruit top talent, because a small growth company must deliver the same capabilities as much larger players—preferably even better—and with a pace that never slows. Our team now exceeds 20 experts, and I can proudly say that we are today a strong player across materials technology, product and production development, and the commercialisation of the solutions we create.
Key developments in 2025
- Our production development unit, built over the past two years, has transformed the pace of our R&D. More advanced processes, a seasoned team and increasingly precise testing and measurement now generate insights much faster, guiding our technology toward industrial scale.
- Our demo line is entering its final construction phase. By late winter 2026, we will deliver material for customers’ first pilot tests, followed by larger pilot applications.
- The EU LIFE funding strengthened our ability to advance our development path with even greater determination. It also showed that new external funders recognise both our capability and potential.
- Our second-place result in the New Wood – Uusi Puu competition brought visibility to our work in improving the utilisation of Finnish side streams and the resource efficiency of wood fibres.
- We also launched several development projects with new customers, further expanding our understanding of the broad application potential that our technology enables across various product types.
Customers are actively searching for biogenic alternatives
Demand for high-performance, biogenic material solutions is immense. We receive regular inquiries from international companies seeking to evaluate the suitability of our material solutions for their needs. This strong customer pull is clear evidence that we are on the right trajectory. The driver is nearly always the need to meet biogenic targets without compromising technical performance.
Typically, collaboration does more than answer existing needs. It continuously generates new product ideas for challenges that previously lacked viable solutions. Customer projects have also shown that our materials perform well in several additional use cases, increasing the value of the partnership and deepening joint development.
Our customers consistently view the early results as highly promising—natural fibres can replace many current applications both functionally and environmentally. We also know that expectations will rise, and the pace of development will accelerate. We exist to meet that challenge.
Preparing our first industrial plant marks a new phase for Fiberwood
Our customer and product portfolio has grown to a point where we can confidently begin planning the next steps toward our first commercial plant. Its launch will fundamentally reshape Fiberwood’s scale and operating model. Confidence in our capabilities has grown enormously this year, and customer feedback has reinforced it further. The road ahead will be intensive, but strongly positive.
Pre-engineering, technology scaling, product development and investment round are currently engaging the entire company. We are building a solid foundation for the major investment decision that will take our novel, versatile material and production technology from pilot deliveries to full industrial manufacturing—ensuring we can meet rapidly expanding customer demand.
I want to thank our entire team for its determination and excellent work, and our customers and partners for their vision and strong trust.
Wishing you a peaceful Christmas and a strong start to the New Year!
Tage Johansson
CEO, Fiberwood Ltd
