Business and industry in Norway - The timber and pulp and paper industry

Norway has vast forests, and timber is the most important raw material for its forestry-based industries. Around half of the timber felled is used by the timber industry, which manufactures wood products for housebuilding, glued-wood structures, doors, window-frames and furniture. Timber that is less suitable for this is sold to the pulp and paper industry for making pulp.

Although the timber industry is spread over large parts of the country, the highest concentrations of it are in eastern and mid Norway. Over the past few years, this sector has undergone restructuring through mergers and acquisitions. Since taking over Norske Skog’s timber operations, Moelven has become one of the largest timber companies in Europe.

The pulp and paper industry consumes a lot of energy, so the companies in this sector have traditionally been located along the major rivers in eastern and mid Norway. This sector is extremely export-oriented and exposed to international competition. Norske Skog has bought factories in Central Europe and Asia over the past few years. The Norwegian pulp and paper industry has long industrial experience and high levels of expertise in the further processing of forestry resources. Paper based on fresh fibre from Nordic conifers is often of a better quality than that based on new, quick-growing plantation trees or paper that has a high recycled-paper content. The new paper-recycling facility at Norske Skog’s mill at Skogn ensures a market for Norwegian recycled paper. Developments in the price of electricity will be of great significance to the Norwegian pulp and paper industry’s competitive ability in the future..