Wood has been used as a source of energy since ancient times. When Finland was first inhabited by humans, their livelihoods were intrinsically tied to the surrounding forests.

Forestry produces wood for different uses. In Finland, the most common uses of wood have been milling for construction and industrial production, paper production and energy production. The rising price of oil has once again made wood a popular source of energy in heating and energy production in Finland. 

The forest industry is an umbrella term that encompasses the previously discussed field of forestry as well as the ways in which the trees gathered from the forests are refined and sold. It can be divided into two categories: mechanical and chemical forest industries.

In the mechanical forest industry, sawmills produce boards and planks from trees. The most important sawmill product is the versatile plywood. The boards and planks produced by sawmills are used as raw materials in construction.


Sawmills are an example of the mechanical forest industry.

The chemical forest industry can be dived into the pulp, paper and paper product industries. The chemical forest industry is concentrated on producing paper and cardboard. In addition, all kinds of raw materials used in paper and cardboard production, such as chemical pulp and mechanical pulp, are produced by the chemical forest industry. The production processes of the chemical forest industry are largely automated, and the final products are one of the most important Finnish export goods.


Paper production is an example of the chemical forest industry.

In total, the Finnish forest industry covers approximately one fifth of the nation's total economic production. The forest industry has an especially important economic role in certain densely forested and scarcely populated areas, such as Eastern Finland, Kainuu, and Koillismaa.

The bioforest industry is a rising field inside the forest industry. This rise is driven by the demands of the consumers, who wish for new, more sustainable products. As a result, the forest industry has begun to answer this demand by producing sustainable biofuels, biochemicals and other products. As such, the forest industry is an important part of the bioeconomy.