Norwegian pension company KLP has announced that it will be investing NOK 150m in Norwegian forestry companies through a new investment fund.

The fund, which is called 3K6 and currently being established, will be launched by Investinor, KLP and the forestry industry to invest in innovative companies within the Norwegian forest-related sector.

It will be managed by Investinor, which will also invest NOK 150m, while the forestry industry will contribute assets through the company Shelterwood AS.

KLP noted that the volume of timber cut in Norway had increased in recent years, with around a third being exported.

The export value is around NOK 80bn over a 20-year perspective, according to KLP, while processing timber in Norway has an estimated value creation potential of NOK 3,600bn over the same period.

The fund’s name is an abbreviation of 3,600 and aims to take advantage of the value that lies in the further processing and business development of Norwegian timber.

“Investinor will build tomorrow's business world,” said Investinor acting managing director, Ann-Tove Kongsnes.

“The goal is to make Norway richer and the world greener.

“Sustainability and digitisation create great opportunities for the traditional forest industry. But the need for competent capital and active ownership is great.

“That is why we are now establishing 3K6 together with leading private investors to ensure long-term industrial ownership and access to capital.

“Every year, Norway misses out on great value creation because we send untreated timber out of the country.

“By further processing timber, we can not only create great value, but also contribute to developing industrial workplaces and long value chains in Norway. This is green growth in practice.”

Also commenting on the fund launch, KLP CEO, Sverre Thornes, added: “Forests are an important natural resource with great potential as a sustainable input factor for value creation.

“We are pleased to be involved in establishing 3K6, which will be a fund that will invest in business development within the forestry sector in this country.”

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