Onninen, a building technology wholesaler and a part of Kesko, operates a central warehouse in Hyvinkää, Finland. The warehouse’s operation produces waste from wooden packaging, such as pallets and frames for plastic pipes that are removed from use. The use of this wood waste as raw material for chipboard was successfully tested in a pilot project during the spring of 2025 at Koskisen’s chipboard plant in Järvelä.
This is a breakthrough in the recycling of wooden packaging in Finland. So far, there has not been any industrial-scale recycling solution for decommissioned wood in the country, despite the fact that construction and demolition waste is the second largest waste category in Finland. In 2022, a total of 248,000 tonnes of wood waste* was generated in the construction industry alone.
In practice, wood waste has so far been mostly incinerated in Finland.
Promoting the circular economy is one of Kesko’s strategic goals. For several years, Kesko’s building and technical trade division has been actively looking for a sustainable solution for the recycling of wood that is removed from use.
“We are constantly developing smarter ways to produce, transport and use consumer goods. Our key objectives include developing business opportunities that follow the principles of circular economy and improving the recycling rate of waste generated from our operations. With the solution in question, the waste recycling rate in Kesko’s building and technical trade business will increase significantly,” says Antti Auvinen, Sourcing and Sustainability Director at Kesko’s building and technical trade division.
Financially profitable activity for both companies
The absolute starting point for the product development for chipboards containing recycled material has been that a product made of recycled material must have the same high quality and purity as a product made of virgin wood. The share of recycled material in the finished product is only a few percent, but Koskisen estimates that it will be able to use a significant amount of recycled material, about a truckload per day, in its production.
“Adding recycled material to our chipboard products is one of our sustainability goals. As a result of the purification process developed during the pilot project, we have an exemplary circular economy product that does not differ in its properties from chipboard made from virgin wood chips. Maintaining the quality characteristics of the product was one of the objectives of the pilot project. It has been great to be involved in promoting concrete circular economy solutions,” says Tom-Peter Helenius, Director of Koskisen’s Panel Industry business.
In the future, Koskisen’s chipboards containing recycled material will be sold at least at K-Rauta stores. The goal is to turn the operating method used in the pilot project into regular production during the summer of 2025.
“The solution we have pilot-tested is new and exceptional in Finland. As far as we know, there are currently no other projects in progress in Finland where wood that is removed from use could be used as a raw material for a new product on an industrial scale. The results of the pilot project show that it is possible to make the operation financially profitable and generate added value for both companies,” say Auvinen from Kesko and Helenius from Koskisen.
Onninen is the market leader in technical wholesale and K-Rauta in hardware stores in Finland. Koskisen is the only chipboard producer in Finland.
*Source: Website of Finland’s environmental administration at ymparisto.fi
YES
NO
