UB FIGG accelerates Nordtreat's world conquest of bio-based fire protection solutions

Finnish private equity fund UB Forest Industry Green Growth Fund (UB FIGG) invested in Nordtreat's development of bio-based fire protection technologies and their scaling to global markets. The common goal is to mitigate climate change through Finnish biotechnology innovations.


In June 2024, UB FIGG, a private equity fund focused on forest and bio-based industry solutions, and German specialty chemicals group ALTANA made a significant investment to accelerate Nordtreat's development of bio-based flame retardants. 

Tight cooperation with sustainability-oriented investment funds with a focus on responsibility will strengthen Nordtreat's expertise, innovation and position as a pioneer in bio-based flame retardants. Good stewardship and continuous improvement of ESG issues have long been part of Nordtreat's corporate culture.

Climate change mitigation needs drivers

UB FIGG specialises in making investments in sustainable and resource-efficient forest and bio-based industries. "The background to this is the product portfolio shift in the forest industry, which the experienced forest industry experts who founded our fund saw coming," says United Bankers' Head of ESG Hanna Värttö. "This kind of product portfolio change has happened roughly every 70 years in the history of the forest industry. To make this change a success will require a significant amount of specialised growth finance, even this time."

"One of our key objectives is to play our part in ensuring the uptake and commercialisation of new forest and bio-based products. At the same time, we seek maximum return for our investors without compromising environmental values. Mitigating climate change is an integral part of our strategy."

Hanna Värttö, Head of ESG, United Bankers

 

UB FIGG invests in growth companies focused on replacing plastics and other fossil-based materials, increasing the value added and more efficient use of wood and agricultural raw material side streams, and the wider use of these raw materials in various intermediate and end-use applications.

Most of UB FIGG's target companies offer new solutions that contribute to climate change mitigation, fossil fuel substitution and the circular economy, as in the case of Nordtreat. Proven environmental performance is an important selling point in the transition to sustainable construction.

Bio-based fire protection increases the environmental benefits of wood construction

Timber construction and biochemicals are two of UB FIGG's three main focus areas. Nordtreat is very central to the fund's investment focus as it contributes to more sustainable wood construction with its bio-based fire protection solutions.

"Nordtreat's bio-based fire protection solutions are unique in their industry. We believe that the construction industry will see sustainability-oriented regulations that favour Nordtreat solutions and will therefore boost sales."

Hanna Värttö, Head of ESG, United Bankers

UB FIGG saw that now was a good time to invest in a company promoting the green transition in the European construction industry with a "future-proof" product. ALTANA's strong involvement as a co-investor in the development of Nordtreat added to the attractiveness of the investment.

Developing a responsible business together

Nordtreat sees close cooperation with its investor partners as an overall development path – both as an enabler of innovation and increasingly responsible business. 

"The collaboration with UB FIGG brings great insights and further industry expertise from the forest sector. We are also particularly proud that now two of Nordtreat's largest owners have clear sustainability targets. This shows confidence in our mission and the impact of our innovations in mitigating climate change. Through these investments and close cooperation, we can contribute to accelerating the widespread use of wood as the building material of the future, while continuing to drive our chemical innovations forward."

Outi Kallio, CEO of Nordtreat

Hanna Värttö says that cooperation on sustainability issues depends on the situation and objectives of the target company. For example, companies can be supported in their work on climate issues or human rights. 

For each target company, objectives and plans will be established and taken forward during the investment. Target companies can benefit from the UB FIGG team's experience in the practical promotion of sustainability issues, monitoring tools and indicators, and implementation of them.

UB FIGG is also an active player on the boards of its portfolio companies. "We are deeply involved in the strategy work and, in addition to our corporate governance expertise, we offer the most appropriate industry expertise from our team, whether it is a new factory construction project, the development of international sales or the mediation of our extensive industry network of contacts at the customer or supplier interface," says Hanna Värttö. 

UB FIGG has therefore appointed Sampsa Auvinen to Nordtreat's board. He is, among other things, Chairman of the Board of the European Wood Products Industry Association and Chairman of the Advisory Board of the UB FIGG Fund. He is also the Honorary President of the European Sawmill Association.