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Metsäliitto suspends operations at Karihaara sawmill until further notice

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07/04/2009
Metsäliitto, continuing to take measures in order to improve the profitability
of its sawmilling operations in the increasingly difficult business
environment, will suspend operations at the Karihaara sawmill, located in Kemi,
Finland, until further notice. Temporary layoffs due to the suspended
operations will affect the majority of the sawmill personnel, which totals 50
people. 
 
"The demand for sawn timber products has weakened rapidly after the deepened
world economy recession slowed down the building and construction industry. In
this very difficult business environment, we must focus on decreasing
unprofitability and reduce our sawing volume", says Ole Salvén, Group Executive
Vice President of Metsäliitto Wood Products Industry, Finnforest. 
 
"The operating environment of the Finnish sawmill industry is now extremely
difficult. Our main problem is the weak cost competitiveness in the export
market, caused by the relatively higher logistics and wood raw material costs.
Moreover, the competition is tightened by the overcapacity in the European sawn
timber market, and the devaluation of the Swedish krona. 
 
The operations at the Karihaara sawmill will be suspended by the end of June.
The continuance of the sawmill's operations will be re-evaluated according to
how the market situation develops. 
 
The Karihaara sawmill has been Metsäliitto's northernmost sawmill. "Although
our sawn timber operations in Northern Finland are now suspended until further
notice, Metsäliitto's mission remains unchanged - Metsäliitto will continue to
procure and market its owner-members' wood in a competitive way," emphasises
Juha Mäntylä, Group Executive Vice President of Metsäliitto Wood Supply. 
 
The Karihaara pine sawmill has produced over 100,000 cubic metres of sawn
timber a year. Approximately 70 per cent of the production has been exported,
about 20 per cent delivered to the own upgrading of the Metsäliitto Wood
Products Industry, and 10 per cent sold to the Finnish market. 
 
Further information:
Ole Salvén, Group Executive Vice President, Metsäliitto Wood Products Industry,
Finnforest, tel. +358 10 465 4870 
Juha Mäntylä, Group Executive Vice President, Metsäliitto Wood Supply, tel.
+358 10 465 4244 
Johanna Kankkunen, Metsäliitto Group Communications, tel. +358 50 350 4005





                                            

                

            

        

    

    



    

        
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