Finnish startup secures €7.7M growth funding to propel sustainable materials into international markets

Järvenpää-based materials technology startup Fiberwood has secured €7.7 million in growth funding from existing investors Metsä Spring and Stephen Industries, alongside public financiers. Founded in 2019, Fiberwood is on the brink of entering its commercial phase, aiming for international expansion. The company specializes in producing sustainable insulation and packaging materials from forestry side streams and other natural fibers. The new funding will enable Fiberwood to build a test line, finalize its product concept, and ensure industrial scalability, setting the stage for upcoming commercial agreements and solidifying their pioneering position in materials technology.

Fiberwood, established in 2019, is committed to advancing sustainable and ecological construction and packaging. The company has developed a technology and production process to produce circular, fossil-free insulation and packaging materials from forestry side streams and other natural fibres.

“Our products offer eco-friendly, recyclable and resource-efficient alternatives to traditional mineral wool-based insulation and cellular plastic-based packaging cushioning. Additionally, we enable the use of sustainable products in entirely new applications,” says Fiberwood’s CEO, Tage Johansson.

In the spring of 2023, Fiberwood received 3 million euros in funding for development work. With the additional funding now secured, the company will build a test line to finalise its product concept, ensure industrial scalability and accelerate R&D activities. The test line will enable the manufacture of fully market-compatible products for customers’ commercial projects.

Fiberwood has several product development projects underway with strategic customers and is close to finalising its initial series of commercial agreements.

“The funding round strengthens Fiberwood’s position as a pioneer in materials technology. 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,” says Johansson.

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