VENNESLA, NORWAY: Forestia is aiming to establish Norway’s largest distribution centre for particle boards, OSB panels and plywood panels for the Norwegian building materials market.
Byggma’s subsidiary, Forestia, is today Norway’s leading producer of particle boards. To strengthen the company’s position in the Nordic building materials market, Forestia, together with its sister company Byggform, will start importing a selection of OSB- and plywood panels to be distributed together with Forestia’s own particle boards.
There are no producers of OSB and plywood in Norway, so the market is dependent on imported goods.
“We believe that with this model, where Forestia and Byggform imports OSB and plywood and distributes this together with its other products to its customers, a very efficient value chain will be established. This value chain can increase the profitability of both Forestia and Forestia’s customers,” a bourse filing noted.
The market for OSB- and plywood panels is significant. In Norway, the market sizes are ca. NOK 500 million and ca. NOK 1,000 million for OSB panels and plywood panels, respectively. The investment is expected to amount to ca. NOK 40 million and the newbuild will be 4,200 m2. After the expansion, the total real estate area at Forestia will be 50,000 m2.
The construction of Forestia’s new distribution centre at Braskereidfoss is expected to be finished by September 2022.
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