This paper investigates the possibility of combining different forest industries (a pulp and paper mill, its supply chain, and a wood-pellet plant) into an integrated industrial site in which they share a common heat and power utility. Advanced process integration and optimization techniques are used to study the site from both material and energy viewpoints. An existing pulp and paper mill is used as the site core plant and its pulp and paper production rates are kept fixed as they are in reality, while the other material flow links among the plants are based on the current industrial situation in Sweden. Different scenarios are evaluated in order to reflect the two main objectives that can be pursued (increased electricity production or biomass resource saving) and the two technologies that can be considered for the shared CHP system (boilers and product gas fired gas turbines). The corresponding non-integrated (standalone) configurations are compared to these scenarios to quantify the potential benefits of the integration. Investment opportunity is also calculated for the considered scenarios as an indicator of the economic convenience