Kekkilä-BVB continues to invest in new circular raw materials by strengthening wood fibre supply

Wood fibre

Kekkilä‑BVB is investing substantially in circular solutions to meet the fast-growing demand for high-performing growing media and to increase the share of circular raw materials – such as wood fibre, sphagnum moss and reed canary grass – in its substrate blends. A new investment in the Netherlands and a new cooperation agreement in Estonia strengthen Kekkilä‑BVB’s wood fibre supply.  

“Global demand for growing media is expected to triple by 2050. Because peat alone cannot meet this need, we are developing new circular materials for our smart substrate blends. Only a few raw materials meet growers’ high performance requirements, and wood fibre is one of them. By investing in wood fibre production near our sites in Northern and Central Europe, we strengthen our ability to serve customers in the future,” says Pekka Tennilä, CEO of Kekkilä-BVB. 

RHP-certified production in the Netherlands 

Kekkilä-BVB’s wood fibre production line in the Netherlands

In 2025, Kekkilä‑BVB launched a new wood fibre production line in Grubbenvorst, producing premium-quality wood fibre from PEFC-certified residual wood sourced from the Central European timber industry. The line has an annual capacity of up to 400,000 m³. 

The production is RHP-certified*, confirming strict phytosanitary standards and ensuring high hygiene, quality and product safety. Thanks to a flexible production process – ranging from fine to coarse fibres – wood fibre can be adapted to a wide range of applications, from young plants to larger pots. In substrate blends, wood fibre contributes to high porosity, improved drainage and structural stability. 

New wood fibre partner in Estonia 

To complement its own production, Kekkilä‑BVB has entered into a cooperation agreement with Woodfiber OÜ, a newly established wood fibre company based in Tartu, Estonia. This new wood fibre production line is currently under construction and is expected to be fully operational by the end of May. It will have a maximum annual capacity of approximately 200,000 m³. The production line will use PEFC- or FSC-certified coniferous wood chips sourced from nearby sawmills. 

Growing media mixture containing wood fibre

Kekkilä‑BVB serves professional growers, hobby gardeners and landscapers in more than a hundred countries. Its production facilities are located in Estonia, Finland, the Netherlands and Sweden. With these arrangements, Kekkilä‑BVB ensures a reliable wood fibre supply for its customers globally. Kekkilä‑BVB’s target is that by 2030, half of the raw materials used in its substrate blends will be something other than peat. 

*RHP is a Dutch non-profit organisation whose quality mark assures compliance with several growing media quality requirements. 

Chrysanthemums

For further information, please contact: 

• Pekka Tennilä, CEO, Kekkilä‑BVB, tel. +358 40 821 5302
• Susanna Inkinen, Chief Communications & Sustainability Officer, Kekkilä‑BVB, tel. +358 50 530 6245