Byggma ASA — Capital/Financing Update 2022

Feb 17, 2022

Press Release from Forestia AS

Forestia AS is Expanding its Operations

50,000 square metres: After the expansion of 4,200 m2, the total real estate area will measure 50,000 m2.

The planned warehouse of ca. NOK 40 million is circled in and will be built alongside Riksveg 2.

A bright future: Project leader Christian Sørlie (left), factory manager Espen Svenneby, and Group CEO Geir Drangsland in Byggma ASA are excited for the growth in Forestia AS in Våler and are planning to invest NOK 70 million in new expansion projects.

Forestia is aiming to establish Norway's largest distribution centre for particle boards, OSB panels and plywood panels for the Norwegian building materials market.

Byggma's subsidiary, Forestia, is today Norway's leading producer of particle boards. To strengthen the company's position in the Nordic building materials market, Forestia, together with its sister company Byggform, will start importing a selection of OSB- and plywood panels to be distributed together with Forestia's own particle boards. There are no producers of OSB and plywood in Norway, so the market is dependent on imported goods.

We believe that with this model, where Forestia and Byggform imports OSB and plywood and distributes this together with its other products to its customers, a very efficient value chain will be established. This value chain can increase the profitability of both Forestia and Forestia's customers.

The market for OSB- and plywood panels is significant. In Norway, the market sizes are ca. NOK 500 million and ca. NOK 1,000 million for OSB panels and plywood panels, respectively. The investment is expected to amount to ca. NOK 40 million and the newbuild will be 4,200 m2. After the expansion, the total real estate area at Forestia will be 50,000 m2.

The construction of Forestia's new distribution centre at Braskereidfoss is expected to be finished by September 2022.

"Forestia is the largest branch in Byggma Group. The investments signal that we wish to strengthen the company in Våler. In addition, we are waiting on support and a go signal to build a factory for recycling of wood waste for ca. NOK 300 million. The factory will would create many jobs in Våler and the municipalities surrounding it." says Group CEO Geir Drangsland

Contact person: Geir Drangsland – email Geir.Drangsland@byggma.no – mobile +47 92 88 58 62.

Innovation and value creation in Norwegian industry is main focus for Byggma ASA.