Statutory negotiations concluded at Kiihtelysvaara sawmill

22/04/2004

The sawmill will cease operations - employees have the possibility to transfer
to other Finnforest production units 

The statutory negotiations that were opened at Finnforest's sawmill in
Kiihtelysvaara on 25 February 2004 have been concluded. Even after
thoroughgoing examinations it was not possible to find sufficient grounds for
continuing operations. All operations will be closed down during the second
half of 2004 according to the detailed timetable to be agreed. Until now the
sawmill has employed 18 persons with an annual production of 60,000 m3 of
spruce sawn timber. 

All employees in the Kiihtelysvaara sawmill have been offered the possibility
to transfer to other Finnforest production units, for instance to the modular
building production unit in Hartola, where operations start up next autumn. 

Sawmilling at Kiihtelysvaara has long been unprofitable due both to lack of
suitable raw material and also to the location of the sawmill resulting in long
transportation distances. 

FURTHER INFORMATION
Solid Wood Division Director Timo Pekkola, Finnforest Corporation, 
tel +358 1046 74743, +358 400 650 184
President and CEO Ari Martonen, Finnforest Oyj, 
tel +358 1046 94870, +358 50 2406
 
Finnforest Corporation is the biggest wood products industry corporation in
Europe. It employs 7,600 people and is one of the core businesses of Finland's
Metsäliitto Group. Finnforest Corporation has two industrial divisions:
sawmilling activities are grouped in the Solid Wood Division, and processed
wood products operations in the Engineered Wood Division. Finnforest's Sales
and Distribution Division serves over 20 countries. Finnforest's Norwegian
subsidiary, Moelven Industrier ASA, takes care of operations in Norway, Sweden
and Denmark. Finnforest supplies wood materials and wood-based products and
services to customers in the building, industrial, and resale and distribution
sectors.