EU Commission approves Finnforest Corporation's majority holding in Moelven Industrier ASA of Norway
Finnforest Corporation BULLETIN 1 (3)
18 July 2001
EU COMMISSION APPROVES FINNFOREST CORPORATION'S MAJORITY HOLDING IN MOELVEN
INDUSTRIER ASA OF NORWAY
- The new entity will be Europe's largest company in the mechanical forest
The EU Commission has approved the business combination of Finnforest
Corporation and Moelven Industrier ASA of Norway. The companies' geographical
market areas and product groups complement each other and will not cause
problems from the standpoint of competition law. In order for the deal to go
though, a licence must obtained from Norway's Ministry of Trade and Industry.
The acquisition of a majority shareholding in Moelven will make Finnforest the
Nordic market leader and by turnover Europe's biggest producer of mechanical
forest products. Finnforest's and Moelven's combined turnover will be nearly €
2 billion. The entity created by the business combination will be a major
player within wood-based building systems. As a producer of sawn timber,
gluelam and plywood, it will be Europe's second-biggest.
The Finnforest product range comprises sawn timber, plywood, Kerto LVL
(laminated veneer lumber), gluelam and I-beams and joists. Finnforest has sales
companies in sixteen European countries as well as in the USA and China. The
Group is the largest supplier to the DIY sector in Great Britain and it
occupies a major position in the DIY market in France and Germany. Moelven
produces ordinary and further-processed sawn timber and building-system
products. It also specialises in on the use of wood for building purposes.
Finnforest's Building Systems Business Area with its roof, floor and wall
systems as well as the Silva spectator-stand concept will be further
strengthened through the addition of Moelven's wood-component panels and other
building-systems products as well as its interior-decoration materials.
Moelven's gluelam products in combination with Finnforest's Kerto LVL and
gluelam ranges will create Europe's most important family of products for use
Finnforest Corporation is a growing international concern. Its core business is
the production and marketing of processed wood products, plywood and sawn
timber. Industrial end-users, DIY stores, timber merchants and
building-supplies companies are the main customer groups. Finnforest is
Europe's leading provider of solutions and services involving the use of wood
and wood products. Its strategy is to give customers ever-improving services by
broadening its product range. A part of the Metsäliitto Group, Finnforest
Corporation operates in 20 countries and has over 4,000 employees and annual
turnover of € 1.3 billion. Finnforest will publish its interim report for
January-June 2001 on 1 August 2001.
The Metsäliitto Group is a forest-products manufacturer whose core businesses
are the processing of mechanical wood products for the building sector as well
as paper, packaging materials and pulp. It had turnover in 2000 of € 7.5
billion and a payroll of more than 32,000 employees. Line management is handled
through the subsidiaries. The Group operates in Europe and markets its products
on all continents. Its wood procurement network covers the whole of Finland.
Its parent company is Metsäliitto Osuuskunta, a cooperative body whose 127,400
members are private forest owners who use ecologically sound silvicultural
methods to manage their family woodlands.
Moelven Industrier ASA (public limited company)
Moelven's main business segments are sawmilling, machined timber products and
building-system products. The Moelven Building Group comprises two divisions,
one responsible for building systems and the other for interior-decoration
systems. The main products are solutions for modular industrial building and
wood-based interior-decoration solutions. Norwegian and Swedish construction
companies and builders form the biggest customer segment. The main markets are
Norway and Sweden, which together account for over 70 per cent of turnover.
Moelven had turnover in 2000 of 4.7 billion Norwegian kroner (approx. € 613
million). The company reported operating profit of 223 million (€ 27.35
million) and ROCE of 15.3%. The equity ratio was 37.5%. The company's nearly 40
units in Norway and Sweden employ 3,100 people. Moelven was founded in 1899 and
listed on the Oslo Stock Exchange in 1981.
For further information, contact:
Finnforest Corporation, President & CEO Ari Martonen, tel. +358 50 2406
Finnforest Corporation, Bo Borgström, Senior Vice President, Engineered Wood
Division, tel. +358 400 714 311
Metsä Wood provides competitive and environmentally friendly wood products for construction, industrial customers and distributor partners. We manufacture products from northern wood, a sustainable raw material of premium quality. Our sales in 2016 were EUR 0.5 billion, and we employ about 1,500 people. Metsä Wood is part of Metsä Group.