Finnish material technology startup Fiberwood Oy has raised €7.7 million in growth funding from its existing investors, Metsä Spring and Stephen Industries, together with public financiers.

Read the article in Finnish here.

The company is developing foam-forming technology that uses leftovers from the forest industry and natural fibres to create breathable, recyclable, and compostable materials, such as building insulation and packaging materials. These materials challenge fossil-based mineral wool and foam-based insulation and packaging solutions.

”We are preparing to enter the commercial phase, with the goal of achieving international growth,” says CEO Tage Johansson.

Test Line in Järvenpää, Finland

Fiberwood is currently working on numerous product development projects with both Finnish and international customers. The next major milestone is already underway: a test line being built in Järvenpää, where the company will finalise its product concepts, accelerate R&D efforts, and ensure the scalability of industrial production.

”The test line is one of the cornerstones of our future, and we will produce large, full-scale boards for our customers’ various pilot projects, such as test buildings,” Johansson explains. According to Johansson, the pilot machine will be operational by 2025.

“We’re setting the foundation for a future production line, minimising risks from the outset. Our investment in process technology distinguishes us, enhances our competitive position, and contributes to developing the Finnish forestry and materials technology know-how.”