Location Profile

Kajaani: a flagship plant with huge potential

With the acquisition of the Finnish wood processor Pölkky in early 2023, the Pfeifer Group sent a clear signal for international growth. The Kajaani site, in particular, became the centrepiece of the new strategy: within a few months, an existing plant was transformed into one of the most modern sawmill sites in Northern Europe.

Alongside the renewal of the sawing plant (the sawmill hall was built using the company's own cross-laminated timber and glued laminated timber), Pfeifer also created modern office and social spaces. The shift model changed too, in consultation with the workforce. The result is a highly industrialised plant with optimised production processes, modern architecture and maximum efficiency. “With its current layout and level of automation, the site ranks among the most modern within our company,” explains Maximilian Pfeifer, Chief Production Officer at Pfeifer Nordics Oy.

Alongside the technical upgrade, Pfeifer also restructured the organisation of its Finnish sites. The five production sites now operate jointly under the name “Pfeifer Nordics Oy”. International sales continue to run through Pfeifer Timber GmbH, the long-established sales company.

Strategic step into Finland

The expansion into Finland brings the Pfeifer Group several advantages. On one hand, the company secures access to high-quality Nordic logs; on the other, the site opens up new international sales markets. In Kajaani, the focus lies clearly on pine, which accounts for around 70 per cent of the cut.

A large share of the logs comes from Finnish forestry businesses. Pfeifer also purchases around a third of its raw material directly as standing timber in the forest, which keeps the company flexible in terms of both product range and production.

"Extensive tests show that Northern Finnish pine has physical properties comparable to Central European spruce," says Alexander Kainer, CEO of Pfeifer Nordics.

Fully automated production without forklift traffic

The redesign paid particular attention to a continuous material flow. From the log to the finished, dried sawn timber package, the entire transport process in Kajaani runs fully automatically – without any internal forklift traffic. Finnish specialists supplied the log sorting system and several other central systems. At the heart of the plant sits a high-performance sawline designed specifically for processing small-diameter pine logs, which currently produces at speeds of up to 170 metres per minute.

Pfeifer also relies on a high degree of automation and powerful equipment in wet sorting, drying and dry sorting. Large buffer stores keep production running consistently. The result: the entire throughput time from cutting to finished product is under a week – while processing requires minimal staffing.

Aerial view of the Kajaani site: within a few months, an existing plant was transformed into one of the most modern sawmill sites in Northern Europe.

More than double the production capacity

The conversion has driven up the site's production output substantially. Capacity today stands at around 450,000 cubic metres of sawn timber a year, more than double the previous level. Pfeifer also puts by-products to consistent use: the bark generated, for instance, goes towards energy generation. In addition, a new heating centre with 17 megawatts of output is currently under construction and is due to go into operation in summer 2026.

Pine accounts for around 70 per cent of the logs processed at the Kajaani site.

Expansion potential already factored in

Despite the extensive modernisation, Pfeifer sees further development potential in Kajaani. Additional investment in further processing is conceivable, for example through the company's own planing mill. The site could also become more efficient in logistics: reactivating a nearby rail connection would allow larger volumes of wood to travel by rail, significantly reducing lorry traffic.

The vast forests of Northern Finland form the basis for Pfeifer Nordics' log supply.

PFEIFER NORDICS

Locations: Kajaani, Kuusamo, Taivalkoski, Kitka, Oulu

Annual production capacity: 1 million m³ sawn timber, 200,000 m³ planed timber, 30,000 m³ glued laminated timber, 50,000 m³ pressure-impregnated wood

Main markets: Finland, United Kingdom, USA, Japan and the MENA region

Timber species in Kajaani: 70 % pine, 30 % spruce