Initially, production stood at 35,000 cubic metres of sawn timber per year. Today, that number has increased nearly sevenfold, and Toftan’s turnover exceeds 70 million euros. This is not merely a growth in numbers. Every step meant analysis, planning, risk, and decisions – improved and new machinery or technology. But also employee training, process optimisation, and earning customers trust.
Two Sawmills, One Goal
Toftan 1 and Toftan 2 are not simply two factories side by side. They represent two different approaches. Toftan 1 operates on a classical sawmill model – band saw technology, processing larger diameter logs. Customers who need specific dimensions or smaller batches get exactly what they need.
Toftan 2 was built in 2016–2017 with an entirely different purpose. Here we process what many others don’t want – small diameter (8-18 cm) and short (3 metres) logs. With HewSaw technology, we can saw up to 50 logs per minute, making this one of the most efficient small-log processing sawmills both near and far. Every small log becomes a product.
Through the cooperation of both mills, we can utilise up to 90% of a coniferous tree trunk in sawmill production.
From Estonia to Japan
In 2024, 60% of production was sold to the Estonian market and 40% for export. Toftan’s sawn timber is used to build earthquake-resistant houses in Japan and structures across Europe. Toftan’s sawn timber sold to Estonia and further processed here (including at Combiwood Group companies) is exported as window and door components, glulam beams and CLT, wooden structures, and planed timber – products with the highest added value.
Efficiency and People
Toftan has continuously invested in technology and productivity growth. Our first priority is to use existing equipment at maximum efficiency. We analyse the efficiency of our various work sections daily and try to find ways to improve it. Only when the efficiency ceiling has been reached do we move on to analysing new technological solutions. We are pleased to note that over the years, we have developed a group of employees who master efficiency topics well. Measuring and analysing performance, and later planning and implementing improvements, means the exciting work never ends.
In addition to analysing processes and efficiency, we also keep people in mind. The best help in making production better come from colleagues, regardless of their position in the company. When we share responsibility for productivity development together, we can also share the profits. CEO Martin Arula has stated directly: “Competitive salary are part of our business plan.” It should be added here that good wages and high productivity cannot exist separately – they always coexist. The right people stay, new ones arrive, and the region develops. Modern technology requires skilled labour, and skilled labour requires proper compensation
Joining Combiwood Group
In May 2025, Combiwood Group acquired 92% of Toftan’s shares. The change occurred in structure, not in operations. The Group needed volume and experience in coniferous wood processing, while Toftan needed stability for longer-term planning and capital for larger investments.
Combiwood Group is Estonia’s leading vertically integrated woodworking network. The Group includes a forest material procurement company, sawmills, component and interior product factories, as well as sales and logistics companies. As of 2025, Combiwood Group employs over 1,000 people in 17 companies. With Toftan joining the group, the combined turnover grows to approximately 276 million euros.
Learn more: toftan.ee