Estonia, EU – Baltic States, Good for Business, Industry, Investments, Markets and Companies, Woodwork

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.