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Metsäliitto closes the Soinlahti sawmill

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27/10/2008
Metsäliitto has decided to close the Soinlahti sawmill in Iisalmi. In the
statutory labour negotiations started at the beginning of September, it was
discussed whether there were any alternatives to continue the operation of the
sawmill. Negotiations were concluded on 22 October. As the European sawmill
industry's operating environment has become more and more challenging,
Metsäliitto has decided to close the sawmill that has been making a loss for a
long time. 

“New sawn timber capacity built in Europe, the high level of costs in Finland
and drastically increased logistics costs make us redefine which products and
from which sawmills we can sell competitively to our customers in our main
markets,” says Ole Salvén, Group Executive Vice President of Metsäliitto Wood
Products. 

“We have already adjusted our sawn timber production to the reduction in demand
for more than a year. During the autumn, the sawmill industry's market
environment has become even more challenging as the weakened economy has slowed
down building and construction,” says Salvén. 

The Soinlahti sawmill will be closed at the turn of the year 2008-2009. The
number of personnel at the sawmill is 66. Metsäliitto will do its best to help
find a new job for those who will lose their job either within the Metsäliitto
Group or in other companies. In connection with the statutory labour
negotiations, a support package has been agreed on which supports employment
and secures financial position of personnel. 

The production capacity of spruce sawn timber at the Soinlahti sawmill in
Iisalmi amounts to 150,000 cubic metres. Most of the production is delivered to
the domestic market and to Metsäliitto Wood Products Industry's own upgrading.
The sawmill has been running since 1952. 

Further information:
Ole Salvén, Group Executive Vice President, Metsäliitto Wood Products Industry,
Finnforest, tel. +358 10 469 4870 
Timo Pekkola, Senior Vice President, Solid Wood Business Line, tel. +358 10 469
4743 
Johanna Kankkunen, Director, Marketing and Communications, Metsäliitto Wood
Products Industry, Finnforest, tel. +358 50 350 4005 





                                            

                

            

        

    

    



    

        
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