Ponsse to establish EU-funded Refactory in Iisalmi
Forest machine manufacturer Ponsse Oyj is launching the EU LIFE Programme-funded ExtendedLIFE project. As part of this initiative, Ponsse will establish an industrial-scale Refactory in Iisalmi, Finland, for the refurbishment and recycling of used forest machines.
Ponsse Oyj has launched the ExtendedLIFE project, funded by the EU's LIFE Programme, aiming to extend the service life of used forest machines and increase component reuse. A key component of the project is the establishment of an industrial-scale "Refactory" in Iisalmi, Finland, for the refurbishment, dismantling, and recycling of used machines.
"Our goal is to significantly extend the lifetime of forest machine components and improve the efficient use of materials," stated Katja Paananen, Chief Responsibility Officer at Ponsse. The company aims to double the service life of key components and achieve substantial environmental benefits aligned with its sustainability targets.
Ponsse has existing circular economy processes for forest machine components, with a remanufacturing unit established in Iisalmi in 2010. In 2025, the volume of refurbished or reused spare parts reached 222 tonnes. The ExtendedLIFE project will expand and develop these operations to an industrial scale.
The project also involves developing a digital marketplace for remanufactured components and providing training on circular economy and remanufacturing practices to personnel, dealers, and value chain partners. Ponsse is utilizing digital tools and AI-based solutions to anticipate maintenance needs and direct components for refurbishment, reuse, or recycling. The establishment of the Refactory is expected to increase local employment in Iisalmi.