Contract for second stage of EKE Group's Sundsberg Kartanonranta housing development agreed

01/12/2004

Finnforest will supply 119 modern wood-built homes for the new residential area
on the Finnish coast at Sundsberg, about 25 km west of Helsinki 

The Finnish EKE Group has placed Finland's biggest single order for wood-built
family houses to date, as part of its Sundsberg residential development
project. Finnforest will supply the buildings, and Finnforest's modular
building business unit at Hartola will produce the 119 new homes in a total of
five different designs. The floor areas of the individual homes vary from 85 to
147 square metres. The agreement that has now been concluded is for about half
of the total number of houses to be built in the second stage of the Sundsberg
project. The new residential area will be constructed in 2005-2006 on the south
part of Sundsberg's Kartanonranta estate, which is owned by EKE Group. 

The new agreement concerns the second stage of the Sundsberg Kartanonranta
development. The first stage has almost been completed and it will comprise 224
homes. Some 600 people are already living in the new community, very much
“satisfied residents” according to the latest survey of their opinions. Most of
those who have moved to the area are people with young families who are rising
in their chosen careers. There is a lively community spirit with resident
families' get-togethers and theme days, and even a local wine club. 

At the beginning of October Finland's Minister of the Environment, Jan-Erik
Enestam, opened the bridges for light traffic that were built by EKE Group to
provide direct road links to the nearby Masala residential area and the railway
station. At the official opening, Mr Enestam remarked that the new development
well fulfilled the requirements set out for new residential areas in the
greater Helsinki region. He particularly praised the way that the type of
housing construction involved also supported industries outside the
metropolitan region. The houses are delivered to the area in the form of
modular room elements that are almost completely ready for rapid erection. 

Finnforest manufactures the room modules to EKE Group designs at the new
modular building factory at Hartola, and puts them together as houses that are
ready for occupancy. Finnforest won the order on the basis of quality and other
competitive factors. The whole order represents a significant part of the
Hartola plant's order book for 2005, and producing it plays a important role in
the factory's run-up to full production. EKE Group is already carrying out
foundation work on the site and has the area infrastructure well in hand. 

The Sundsberg Kartanonranta development plan involves the construction of homes
to accommodate a total of some 2,600 residents. The site is located close to
the municipal border between the towns of Espoo and Kirkkonummi, on the shores
of the Gulf of Finland. EKE Group owns an area of 420 hectares there and it has
proved very attractive to home-seekers who appreciate the location and
surroundings as well as the other advantages it offers. Through the Sundsberg
project, the town of Kirkkonummi has been a pioneer in the greater Helsinki
area with regard to agreements for the use of land whereby municipalities
reduce the burden of inputs required from them and at the same time meet the
growing challenges of the demand for housing. The project also meets the
government's desire for increased efforts and investments to develop
residential urban areas of modern wood-built family houses in Finland. 

Further information:
Tea Ekengren-Saurén, Director, Marketing and Communications, EKE Group, phone:
+358 (0) 400 607 670 
Oiva Makkonen, Director, Construction, EKE Group,
phone +358 (0) 40 534 3710
Heikki Pietiläinen, Director, Modular Buildings, Finnforest Corporation,
phone: +358 (0) 50 381 9369

Pictures of the press conference announcing the agreement: www.universal.fi/eke

EKE Group is a well-funded family-owned group of companies whose main
activities centre on construction and development, railway transportation and
the timber business. Founded in 1961, the Group has been active in large-scale
international construction almost continually throughout its history. The
Sundsberg development at Kirkkonummi is its main project at the moment. EKE
Group also has construction projects in Vantaa and Estonia under development. 
Further information: www.sundsberg.com and www.eke.fi

Finnforest is the biggest wood products industry corporation in Europe. It has
an annual turnover of 1.9 billion euros and employs 8 000 people. Finnforest is
one of the core businesses of the Metsäliitto Group and operates in over 20
countries. Finnforest's subsidiary, Moelven, is responsible for operations in
Norway, Sweden and Denmark. Finnforest supplies wood building materials and
wood-based products, systems and services to customers in the construction,
industrial, and distribution and retail sectors. 
Further information: www.finnforest.com.