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RDP project database

A New Bio-composite Production Line in Finland


EAFRD funding supported the creation of a production line for bio-composite products with excellent physical and environmental performance exploiting locally available organic raw material, peat.




Surface peat can be processed to develop bio-based composite materials for example for the manufacture of consumer products and construction materials, at the same time reducing the use of oil-based raw materials. The advantages of peat-based composite products are their low cost, water resistance, impact strength, excellent fire endurance and biodegradability. Peat is available in considerable quantities in Finland but this abundant resource (often mixed with wood) is mostly burned to produce heat and electricity.


The objective of the project was the establishment of a company in the municipality of Karvia, a peat-production area, for the exploitation of peat fibres and the production of bio-composite materials. The project idea moved from preliminary tests run in collaboration with research institutes and university in order to optimise the specific properties of the peat fibre and develop new ecological products for oil absorption, insulation and shape-pressed applications (blankets, sheets, etc).

Main activities

The investments supported by the EAFRD fundamentally allowed Konto Ltd. to start production of high quality environment-friendly products based on peat natural fibres. Funding was used to install a new bio-composite production line. Product testing was done in parallel by the company allowing the consequent fine-tuning of the installed equipment.

Results & Benefits

Today the company is well-established in the production of bio-based insulation and oil absorption products with the potential to cover other market segments. As far as environmental performance is concerned, recycling is fully taken into account in the production process as all surplus raw material is reused at the factory. The new production line created new jobs and brought more investments and expertise into the area. Connections were also created with up- and down-stream businesses.

Lessons learnt

EAFRD support made possible launching a new business exploiting a local, largely available natural resource in an innovative way. The choice of the company location was a success factors as from the point of view of raw material availability Karvia and the surrounding municipalities are well-known peat producers.

Project location and other information

Province of Western Finland



RDP Territory


Total project cost (€)

524 008

EAFRD contribution (€)

80 881

National contribution (€)

98 854

Private contribution (€)

344 273

Project website

Contact name

Miika Laitila


+358 400 569 099

Languages for contact


Document attachment

At a glance



Final beneficiary type

Non-farm or non-forest entreprises

Budget range

> €500 000

Start date:


End Date:


Theme / Measure:

• Rural Quality of Life & Economic Diversification
• Rural economic diversification
• 312. Support for business creation and development


By-product, Reuse, Consumer goods, Entrepreneurship, Natural fibre

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