Ponsse launches EU-funded project – Refactory to be established in Iisalmi, Finland

PONSSE PLC, PRESS RELEASE, 8 JULY 2026 AT 9:00 A.M. (EEST)

Ponsse is launching the ExtendedLIFE project, funded by the EU’s LIFE Programme. The project aims to extend the service life of used forest machines and increase the reuse of machine components. As part of the project, Ponsse will establish a Refactory in Iisalmi, Finland, where used machines can be refurbished or dismantled and recycled on an industrial scale.

“Our goal is to significantly extend the lifetime of forest machine components and improve the efficient use of materials. We aim to even double the service life of key components and achieve substantial environmental benefits in line with our sustainability targets,” says Katja Paananen, Chief Responsibility Officer at Ponsse.

The ExtendedLIFE project develops new solutions that enable more efficient refurbishment, reuse and recycling of forest machine components.

Ponsse has already established circular economy processes for forest machine components. In 2010, a remanufacturing unit was established in Iisalmi, where components are refurbished for reuse. The operation has gradually expanded. In 2025, the volume of refurbished or reused spare parts reached 222 tonnes. Through the ExtendedLIFE project, these operations will be further expanded and developed on an industrial scale.

The project also includes the development of a digital marketplace for remanufactured components and training for personnel, dealers and value chain partners in circular economy and remanufacturing practices.

“As a result of the development work, a new Refactory concept will be created, enabling forest machines to be refurbished, dismantled and recycled as efficiently as possible. The Refactory will be established near Ponsse’s service and logistics centre in Iisalmi during 2026. The project is expected to increase employment in Iisalmi in areas such as machine dismantling and installation work,” says Ville Ohukainen, Circular Economy Coordinator at Ponsse.

Ponsse is utilising digital tools and AI-based solutions in the project to anticipate maintenance needs and direct components for refurbishment, reuse or recycling.

“For Ponsse customers, the project will primarily be visible through improved availability of refurbished and remanufactured spare parts. This will provide more cost-effective options for machine maintenance and support the long service life of forest machines,” Ohukainen says.

ExtendedLIFE project in brief

ExtendedLIFE is a project funded by the EU’s LIFE Programme in which Ponsse develops the remanufacturing and recycling of forest machine components on an industrial scale. The aim is to extend component lifetimes and significantly reduce the use of materials and emissions. The project’s total budget is approximately EUR 5 million, of which 60% is funded by the EU’s LIFE Programme.

Media contacts:

Katja Paananen, Chief Responsibility Officer, Ponsse Plc
Email: katja.paananen@ponsse.com

Ville Ohukainen, Circular Economy Coordinator, Ponsse Plc

Email: ville.ohukainen@ponsse.com

Ponsse Plc is a company specialising in the sales, manufacture, servicing and technology of cut-to-length method forest machines and is driven by genuine interest in its customers and their business. Ponsse develops and manufactures sustainable and innovative harvesting solutions based on customers’ needs. The company was established by forest machine entrepreneur Einari Vidgrén in 1970, and it has been a leader in timber harvesting solutions based on the cut-to-length method ever since. Ponsse is headquartered in Vieremä, Finland. The company’s shares are quoted on the NASDAQ OMX Nordic List.