Estonia, EU – Baltic States, Good for Business, Industry, Investments, Markets and Companies, Woodwork
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Tuesday, 10.12.2024, 08:37
Thermory is investing heavily to meet growing demand
Thermory will invest 7.5 mln euros in the construction
of a 3,000 m2 thermal complex. The new complex will include four new thermal
heating chambers, doubling the production capacity. The building will be more
energy efficient than Thermory’s existing production units, with new
technology that will allow the heating chambers to be more resource efficient.
The main contractor for the construction is Maru Ehitus and the heating
chambers are to be provided by Finnish producer Jartek.
According to Thermory CEO Simmo Soomets, the
new thermal complex, which will also create 40 new jobs, is a necessary step
for the company. “We need to increase our production capacity as otherwise we
will soon be unable to meet demand for our products, which is growing at an
increasing rate,” Soomets explains, adding: “The use of environmentally
friendly and chemical-free wood is increasing worldwide.”
Thermory produces thermally modified wood, which is
made durable and weather-proof through cutting-edge technology that uses only
heat and steam. Due to its properties, the wood is a great alternative to
tropical wood that has a significantly negative impact on rainforests, cheap
wood that is impregnated with chemicals, and composite materials made from
plastic and wood fibers.
According to Soomets, the current pandemic has not reduced
demand for Thermory’s products: “On the contrary, since many are
currently building or renovating, for example saunas and terraces, demand has
been strong despite national restrictions. In the springtime, we critically
reviewed all of our expenses and processes, but fortunately we did not have to
lay off any staff or reduce wages,” Soomets says. "Due to the continued
growth in demand, we will also invest mln euros in our factory in Teuva,
Finland, installing two new thermo heating chambers. That means in total we
will add six new chambers and by the end of 2021 have 19 thermo heating
chambers in our network. This will ensure that we keep the leading position in
our industry globally.”
Thermory has expanded successfully in recent years,
both organically and through mergers. In 2018, thermally modified wood and
sauna materials producer HaServ joined the company, and in 2020 Thermory
acquired a 100% stake in Siparila, a Finnish manufacturer of painted
wood materials. A significant change of ownership took place this summer when
the investment fund Livonia Partners sold its majority stake to UG
Investeeringute OÜ which is related to entrepreneur Kristjan Rahu.
"With the addition of a strong new majority
shareholder, we are vigorously taking our next steps, one of which is to
increase the production capacity at our Loo factory and in Finland,"
Soomets says. "In addition, we plan to invest in our other factories in
Estonia and Finland in the near future, focusing on increasing production
capacity, improving efficiency through automation, introducing smart digital
solutions and continuing to reduce the company's ecological footprint. Total
investments in coming years will exceed 20 mln euros."
Thermory is a chemical-free thermally modified wood processing
company founded in Estonia in 1997, that produces decking boards, exterior
cladding and interior flooring boards, sauna materials and ready-made saunas
using a heat treatment technology created and patented in Finland. Thermory's
production units are located in Estonia, Finland, Latvia, and Belarus and the
company also has a sales unit in the United States. The group employs 750
people and will have an estimated turnover of 110 mln euros in 2020.
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