Metsäliitto Wood Products Industry will close down the Kyröskoski sawmill

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Metsäliitto Wood Products Industry Press Release 12 March 2010

The statutory labour negotiations concerning the continuation of operations at
the Kyröskoski sawmill of the Metsäliitto Wood Products Industry have been
completed. The negotiations could not identify a profitable solution for the
continuation of the sawmill operations from an overall perspective, and
Metsäliitto has made a decision to close down the mill, which has been showing
a loss. 

"On the basis of calculations concerning the preconditions for profitable
production and the sufficiency of competitively available spruce and pine logs,
a solution for continued operations could not be found. Focusing production on
units where the conditions enable operation at an optimal level is necessary
for profitable activities," says Ole Salvén, Group Executive Vice President of
Metsäliitto Wood Products Industry. 

Metsäliitto will do its best to help find work for those who will lose their
job either within the Metsäliitto Group or in other companies. The cooperation
negotiation parties agreed on a support package that will facilitate employment
and secure the financial position of the personnel in the new situation. 

The Kyröskoski spruce sawmill is located in Hämeenkyrö. The annual volume of
sawn timber produced at the mill is approximately 200,000 cubic metres and the
number of employees is 62. Over 50% of the production is exported, about 25% is
delivered to Metsäliitto Wood Products Industry for processing and the
remainder is supplied to domestic sales. Operations at the Kyröskoski sawmill
have been suspended since January 2009. 

More 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 
Satu Holm-Jumppanen, Communications Manager, Metsäliitto Wood Products
Industry, tel. +358 10 465 4684 

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