Hannu Virtanen, managing director of Arctic Forest Products Inc., has spent decades bringing high-quality Finnish timber to the Philippines. But he does more than just sell wood, such that he’s driven to introduce sustainable forestry practices and innovative building solutions to a market that’s still catching up to global standards.
In a recent Simpol.ph exclusive interview, sustainability isn’t something Finns have to be taught, Virtanen explained, such that it’s just how they live. A key principle in Finland is Everyman’s Right, a law that allows people to freely roam, camp, and forage in forests, even if they’re privately owned. It’s a system built on trust and responsibility.
“One key element is the concept of ‘Everyman’s Right,’ which is protected by law,” he said. “Over 65 percent of Finnish forests are privately owned, but regardless of ownership, anyone can access these forests to camp, pick berries, hike, and enjoy nature, provided they do not cause any destruction.”
That deep respect for nature also extends to forestry. Finnish law requires that for every tree cut down, 10 more must be planted. It’s a simple but powerful rule that keeps the country’s forests thriving.
While Finland has had sustainable forestry practices in place for centuries, things are different in many developing markets. Certification systems, which track where timber comes from and ensure responsible sourcing, are standard in Finland but still rare elsewhere.
“Everything exported from Finland is certified, meaning we know exactly where each piece of timber originates,” Virtanen explained. “We can trace a plank back to its source in the forest.”
In the Philippines, however, the timber industry is largely uncertified. Strict logging bans have been put in place to prevent deforestation, but Virtanen believes that real sustainable forest management, rather than outright bans, is the long-term solution. “There is an ongoing effort to implement a certification system locally, but it will take time to establish,” he said.
Virtanen and his wife have called the Philippines home since 1997. Before that, they spent three years in Hong Kong while he worked in the mining industry. When his employer wanted to relocate him again in 2000, the couple decided to stay and carve out a new path for themselves.
They started with saunas, an obvious choice given their Finnish background. “Finland, with a population of only 5.6 million, has nearly 3 million saunas, and almost every Finn knows how to build one,” Virtanen said. The demand for wellness facilities in hotels and health clubs made it a natural fit.
By 2008, though, customers started asking for more than just saunas. People wanted decking, wall panels, and other high-quality wood products. Seeing an opportunity, Virtanen sold his shares in the sauna business and shifted his focus to timber, launching Arctic Forest Products.
Arctic Forest Products specializes in pressure-treated Finnish timber, which is processed before it even arrives in the Philippines. This treatment protects it from pests, moisture, and harsh weather conditions, making it more durable than locally available wood.
“The pressure treatment process is completed before the wood arrives here, ensuring protection against elements and pests,” Virtanen said. “We then apply a stain treatment to enhance water repellency and UV protection, making it more durable for outdoor use.”
Their construction techniques also help them stand out. Instead of visible nails and screws, they use hidden fasteners and custom profiling techniques for a cleaner, more polished look. They also offer heat-treated timber, which is stabilized at high temperatures to make it even more durable.
Getting high-quality Finnish timber to the Philippines isn’t easy. With such a long supply chain, managing inventory is one of the biggest hurdles Virtanen faces. “The biggest challenge is logistics, ensuring we have the right inventory at the right time,” he said. Without careful planning, delays and shortages can quickly become problems.
Like many businesses, Arctic Forest Products faced difficulties in 2022 and 2023. But Virtanen is optimistic about the company’s future. “The business was stable and sustainable until 2022. However, we faced challenges in 2022 and 2023. Fortunately, we are now seeing signs of recovery and getting back on track,” he said.
His vision for the company is to be the premier provider of high-quality, innovative, and sustainable timber solutions for architectural applications.
For those looking to start a sustainable business, particularly in the Philippines, Virtanen has three key pieces of advice:
Find your niche. “You cannot serve everyone, so focus on excelling in a specific area.”
Be service-oriented. “Truly listen to your clients and understand their needs.”
Build trust. “Do not just sell a product; sell yourself first. If clients do not trust you, they will not buy from you.”
At the end of the day, business is about relationships. Virtanen firmly believes that investing in employees and building trust with clients is key to long-term success. “You must trust and educate your employees to ensure long-term success,” he said.
He also acknowledges that cultural differences can sometimes play a role in business relationships. “Sometimes, a foreign face can open doors differently than a local representative,” he admitted. But for him, teamwork is everything. “I make sure my colleagues are actively involved in client discussions rather than having clients focus only on me.”
For more detailed information about their products and services, visit their official website at arcticfp.com.
