Metsä Group divests Metsä Wood Eesti AS business to Combimill OÜ
Metsä Group Press Release 10 June 2014
On 10 June 2014, Metsäliitto Cooperative, the parent company of Metsä Group, agreed on the divestiture of the entire share capital of its subsidiary Metsä Wood Eesti AS to the Estonian Combimill OÜ. Simultaneously with the transaction, the parties have agreed on commercial cooperation in raw material procurement as well as by-product and sawn timber sales. The transaction will not have a significant impact on Metsä Wood’s financial results.
"This arrangement is in line with Metsä Wood’s strategy of industrial efficiency and investment in resources in the continuous development of the competitiveness and productivity of Metsä Wood’s core business", said Esa Kaikkonen, Executive Vice President of Metsä Wood, commenting on the transaction.
Metsä Wood Eesti AS is the Estonian subsidiary of Metsä Wood and its sawmilling activities are located at the production unit in Reopalu, Järva County, central Estonia. The annual capacity of the Reopalu sawmill is 75 000 m3 of spruce timber. Turnover of Metsä Wood Eesti AS amounted to approximately EUR 16 million last year and the company employs 38 people. Combimill OÜ is a prominent Estonian producer of pine sawn timber with a production facility located in Kõidama, Estonia. The finalisation of the transaction is subject to approval by the Estonian Competition Authority. The transaction is expected to be completed latest by the end of Q3/2014.
METSÄ GROUP
Group Communications
For further information, please contact:
Esa Kaikkonen, Executive Vice President, Metsä Wood, Tel: +358 10 469 4749
Atte Ailio, Chief Financial Officer, Metsä Wood, Tel: +358 10 469 4381
www.metsagroup.com
Metsä Group is a responsible forest industry group whose products’ main raw material is renewable and sustainably grown northern wood. Metsä Group focuses on tissue and cooking papers, consumer packaging paperboard, pulp, wood products, and wood supply and forest services. Its high-quality products combine renewable raw materials, customer-orientation, sustainable development and innovation. Metsä Group’s sales totalled EUR 4.9 billion in 2013, and it employs approximately 11,000 people. The Group operates in some 30 countries. Metsäliitto Cooperative is the parent company of Metsä Group and is owned by approximately 123,000 Finnish forest owners.
www.metsawood.com
Metsä Wood provides competitive and environmentally friendly wood products for construction, industry and distributor partners. The products are manufactured from northern wood, a sustainable raw material of premium quality. Metsä Wood’s sales were EUR 897 million in 2013, and we employ approximately 2,500 people. Metsä Wood is part of Metsä Group.