Forestry

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FORESTRY

The forestry industry has long-standing traditions in Norway. In the processing industry, Norway has one of the world’s leading technological environments related to products that use wood as an input factor. In the building industry, Norway is considered one of the leading countries in the development of wooden structures (bridges and buildings).

The forestry and wood processing industry has been an important employer throughout the country, and global trading of raw materials and products has been going on for centuries. Today, felling rates are low in relation to the growth in Norwegian forests, and this provides opportunities for increased production of renewable and sustainable products that the market wants.

The green gold

Norwegian forests represent great opportunities for environmentally friendly value creation and the replacement of non-renewable products. In the processing industry, Norway has one of the world’s leading technological environments related to products that use wood as an input factor. In the building industry, Norway is considered one of the leading countries in the development of wooden structures (bridges and buildings).

Norway’s productive forest covers nearly 20 million acres, divided between 129,000 properties throughout the country. Norway spruce and pine are the most common species of wood in Norwegian forests, making up approximately 79% of the total volume. The fibre properties of Norway spruce make it well suited for the production of high-quality niche products.

Competence base and clusters

The forest-based value chain needs all links to function optimally in order to ensure long-term value creation. In recent years, there has been a strong reduction in the production of magazine paper in Norway, and the industry needs to be restructured to target new markets.

Several environments are currently working on forming clusters based on diverse production in shared premises. The aim is collaboration across sectors and national borders. Innovation Norway and the Research Council of Norway support enterprises’ research and development work with a view to achieve value creation in Norway.

Opportunities

Due to several challenges in the industry, the Government will spend NOK 750 million on a package of measures to assist the Norwegian forestry sector. The package from the Government aims to increase efficiency in transport, to stimulate to new uses of wood in buildings and in general to enhance innovation and increase R&D. In addition more capital to Investinor for strategic investments in the forest industry, will be provided. In the Government proposal, Innovation Norway and The Research Council of Norway have received more resources to increase their programs for this industry.

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