![](\"https:\/\/www.timberindustrynews.com\/wp-content\/uploads\/2026\/03\/keitele-group-posts-stronger-2025-results-higher-log-prices-and-weak-global-lumber-demand-shape-outlook.jpg\")
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Finnish wood processing company Keitele Group Oy reported higher revenue and improved profitability for its financial year ending 31 August 2025, while warning that rising log costs and weak global demand are likely to weigh on the industry in the coming year.<\/p>\n
Net sales rose 14.1% to \u20ac387.6 million, while operating profit improved to 6.3%, compared with 4.1% in the previous financial year. Profit for the period increased to \u20ac19.8 million, up from \u20ac11.2 million in 2024.<\/p>\n
Sawn timber delivery volumes increased 5% during the financial year, reflecting stronger utilisation of production capacity. Deliveries of processed wood products declined 4% compared with the previous period.<\/p>\n
The company said the weak Japanese yen reduced demand for glulam and planed timber and put pressure on euro-denominated prices in the Japanese market. Glulam production was adjusted during the year to better align output with demand. Delivery volumes increased in other product groups within the wood products segment.<\/p>\n
Group restructuring completed<\/strong><\/p>\n At the start of the new financial year on 1 September 2025, Keitele implemented a structural reorganisation intended to streamline operations and clarify responsibilities within the group.<\/p>\n Under the new structure, the group\u2019s manufacturing operations were consolidated under Keitele Wood Oy, the company formerly known as Keitele Timber Oy.<\/p>\n Wood procurement and administrative services, together with ownership of Keitele Wood Oy, were transferred from Keitele Forest Oy to Keitele Group Oy, previously named Keitele Teollisuuspuu Oy. The reorganised subgroup is fully owned by Lignum Aeternum Oy, formerly Keitele Forest Oy.<\/p>\n According to Mikko Kyl\u00e4vainio, chief executive of Keitele Group Oy, the new structure simplifies the organisation and supports a more integrated approach to customers.<\/p>\n \u201cAll manufacturing wood processing operations now take place at Keitele Wood Oy, while Keitele Group Oy is responsible for the group\u2019s administration and wood procurement. Wood trade and forest services will continue under the Keitele Forest brand,\u201d he said.<\/p>\n Outlook: investment continues as market remains weak<\/strong><\/p>\n The company said it continues to invest in production capacity despite difficult market conditions.<\/p>\n Over the past decade, Keitele has invested more than \u20ac200 million in production facilities in Finland. A \u20ac40 million expansion and modernisation project in Keitelee is nearing completion and is expected to support future growth.<\/p>\n However, rising raw material costs are expected to affect results during the current financial year. The sharp increase in stumpage prices in Finland during the summer of 2025 is expected to weigh on profitability as higher log costs move through the sawmill production chain.<\/p>\n At the same time, the price difference between pine and spruce sawn timber in export markets has widened to nearly 10%, creating additional pressure for producers.<\/p>\n Global demand for sawn and planed timber also remains weak. Since the market peak in 2021, global softwood consumption has declined by around 50 million cubic metres, equivalent to roughly five times Finland\u2019s annual sawn timber production.<\/p>\n Keitele Wood said it aims to gradually increase production of sawn timber and wood products toward 1.2 million cubic metres once geopolitical tensions ease, global economic growth improves and demand for wood products recovers.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98184,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-98181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n