Finnish forestry contractor Metsä-Multia is expanding its operations through the acquisition of the logging business of PH-Forest in Central Finland.
The deal strengthens Metsä-Multia’s position in timber harvesting and wood transport services at a time when Finland’s forestry contracting sector is becoming increasingly concentrated around larger operators.
The company says the acquisition will improve operational capacity and provide additional resources for future growth.
– This is a significant step forward for us and enables us to offer even more comprehensive services to our customers, CEO Kai Laaja said in a statement published by the company on Facebook.
Larger operators dominate the marketMetsä-Multia mainly operates in Central Finland and works with several major forestry companies and forest owners.
Its customer base includes Metsä Group, Versowood, Metsänhoitoyhdistys Keski-Suomi, UPM and Forest Vital.
Finland’s forestry contracting market has undergone significant consolidation in recent years as larger contractors continue to gain market share.
At the same time, smaller owner-operators with only one or two machines are facing increasing pressure from rising operating costs and stricter efficiency demands from major forest industry companies.
The sector is also struggling with higher machinery prices, rising interest rates and growing expectations regarding delivery reliability and operational efficiency.
– Reliability, competitiveness and responsibility are core values for us, and this transaction strengthens them even further, Kai Laaja said.
Smaller contractors under growing pressure
The acquisition comes as several major Finnish forestry companies attempt to reduce the number of subcontractors and concentrate larger harvesting volumes among fewer contractors.
This trend has increased financial pressure on smaller companies involved in both timber harvesting and timber transportation.
Industry analysts warn that many small contractors may disappear entirely as investments in modern forestry machinery become increasingly expensive while profit margins remain under pressure.
Manufacturers such as Ponsse and other major suppliers have introduced increasingly advanced and costly forestry machines with higher levels of automation and digital control systems.
That development requires larger operational volumes and significantly more capital from contractors.
Forestry remains vital for Finland
Despite weaker economic conditions and slowing demand in parts of the forest industry, forestry continues to be one of Finland’s most important export sectors.
At the same time, the industry is undergoing broader structural changes driven by digitalisation, automation and stricter sustainability requirements affecting both forest companies and contractors.
The transaction between Metsä-Multia and PH-Forest is another sign of the ongoing restructuring within the Nordic forestry contracting sector.
No financial details regarding the acquisition have been disclosed.
Source: Company information from Metsä-Multia and Finnish newspaper Maaseudun Tulevaisuus.
