An investment company has acquired a forest in Scotland amid a rising demand for timber.

The firm said the move is aimed at “ensuring the domestic supply chain is better equipped” to support future timber industry growth.

Gloucester-based Blackfinch Group has acquired a 174-hectare commercial forest at Dalmally. It said acquiring its first commercial forest in Argyll and Bute is as part of its aim to “support UK-wide timber market growth”.

The purchase, the value of which was not disclosed, was made through its subsidiary Litchfield Trading Limited, with funding provided by retail investors through the Blackfinch Adapt IHT Service.

The firm said this initiative “supports long term investment into the UK economy, helping strengthen key local industries such as forestry, while offering favourable tax treatments to investors”.

The forest comprises predominantly Sitka spruce, a highly productive species widely used in construction and packaging. Timber from the site will directly support the UK’s construction and packaging sectors, where demand for renewable, alternative materials is growing rapidly.

Blackfinch said that currently, 80 per cent of timber used in the UK is imported, emphasising the importance of expanding domestic capacity, while the demand for timber in construction is expected to grow by 15 per cent by 2030, driven by net zero targets.

Timber is also increasingly being used as an alternative to plastics as industries turn toward biodegradable and recyclable packaging materials.

Kerry Hughes, investment director for energy and forestry at Blackfinch, said: “This acquisition reflects our commitment to creating long term outcomes for our investors while supporting critical sectors of the UK economy. Timber is vital to decarbonising construction and packaging, and investments like this ensure the domestic supply chain is better equipped to meet this growing demand.”

Sitka spruce is a species renowned for its high productivity and suitability for commercial forestry. With a balanced mix of younger and mature crops, forestry experts have noted that the forest is planted to full commercial densities, ensuring a consistent and scalable resource for industries reliant on timber.

The purchase was advised by Bidwells, a property consultancy specialising in forestry investments, and Turcan Connell, who provided legal support.

Sam Booth, an associate in the forestry team at Bidwells, said: “We were delighted to assist Blackfinch with the purchase of a 174-hectare property, delivering strategic long-term value. Conducting thorough expert market analysis was essential, and we were pleased to be involved in such an acquisition to assist the Blackfinch team, who’s commitment to the sector was evident from the outset.”

Blackfinch said: "With forestry playing a key role in the UK’s timber supply chain and material needs, investments like this support national economic priorities and resource security."

This article originally appeared in our sister title, the Herald.