Finnforest Corporation's revised operational model and organisation as of 1.9.2003

Starting point: improved customer service

Finnforest is clarifying its business model. The changes now being carried
through will strengthen implementation of our strategy, which defines
Finnforest's aim as being to achieve leadership of the European market for wood
products in the building, retail and industrial end-use segments. 

The central means of achieving this lie in genuine cooperation between the
divisions and product groups, i.e. the One Shop Finnforest operational model.
The goals are an unambiguously clearer customer-centredness in the organisation
of business processes as well as more efficient capital turnover as a means of
achieving higher profitability. 

A new Sales and Distribution Division is being created within the Corporation
and Mr.Timo Kouri, M.Sc. (Engineering), who is a member of the Finnforest
Management Board, has been appointed to head it. The new division will ensure
implementation of measures - in relation to goods, services, sales and
distribution - which add value to a customer's product portfolio. Its task is
to guarantee cooperation between Finnforest's sales network, the
country-specific organisations and the industrial divisions Solid Wood and
Engineered Wood. Management of the sales network and the Market Areas
organisation's One Shop model are being strengthened as part of the same
restructuring. 

Mr. Mikko Kilpeläinen, BBA, has been appointed Chief Business Controller of
both the Sales and Distribution Division and Finnforest Corporation and also to
a seat on the Management Board. His task is to develop results measurement,
goal setting and tracking as well as to monitor and ensure their effective
functioning in support of our customer-centred operational model. 

Finnforest's cooperation with subcontractors and environmental matters are
being added to the range of product portfolio duties for which Mr. Esa Kosonen,
M. Sc. (Engineering), also a member of the Finnforest Management Board, is
responsible. 

Operative Management Board created within the Corporation's Management Board
To supervise the One Shop Finnforest operational model, an Operative Management
Board (OMB) has been created within the Management Board. It will be chaired by
Timo Kouri, who has also been appointed Finnforest Corporation's Chief
Operating Officer. The other members of the OMB are: Heikki Castrén, Timo
Pekkola, Esa Kosonen and Mikko Kilpeläinen. 

In the same conjunction, Timo Kouri is being appointed Deputy Chairman of the
Finnforest Corporation Management Board, which is chaired by CEO Ari Martonen.
The other members and their spheres of responsibility are: Bo Borgström:
Finnforest Deputy CEO, Moelven CEO and Market Areas Norway, Sweden, Denmark;
Heikki Castrén: Engineered Wood Division, Olli Hirvonen: management systems and
remuneration, personnel, legal affairs; Veikko Hoikkala: Market Areas Russia
and Far East; Markko Ihamuotila - marketing and communications;  Mikko
Kilpeläinen: Business Controlling; Esa Kosonen: product portfolio, product
procurement, research and development, new products, high-value-added
production, environment; Timo Kouri - Sales and Distribution Division, sales
network, IT, logistics, Market Areas Holland, Belgium, Italy, North America,
Poland, Turkey, Romania, Slovakia, Czech Republic, Hungary; Timo Pekkola -
Solid Wood Division, wood procurement, Market Area Finland; Ole Salvén - Market
Areas Germany, France, Austria, Spain and Portugal; Matti Sihvonen - strategic
management, secretary to the Management Board; Ilkka Silvanto - financial
management and financing, risk management, acquisition and alliance analyses,
investments and energy; John Tong - key account concept, Finnforest UK and
Ireland. 

For additional information: CEO Ari Martonen, tel. + 358 (0)1046 94870

Finnforest Corporation is Europe's biggest wood products manufacturer and
belongs to the Metsäliitto Group.  Its two industrial divisions are Solid Wood
(sawmilling) and Engineered Wood (processed wood products). Finnforest offers
its clients a range of wood-based product and service solution for building,
industrial end-use, distribution and retail sale. The Corporation has
operations in over 20 countries. The principal actor in Scandinavia is Moelven.
Employees total 7,700.

About Us

Metsä Woodwww.metsawood.com Metsä Wood is one of the leading European producers of engineered wood products. Metsä Wood is committed to serving construction, industrial and distribution customer with competitive and environmentally friendly wood products. Metsä Wood’s products include Kerto® LVL, plywood and other wood products. Metsä Wood's sales in 2019 were EUR 0.4 billion, and currently employing approximately 1,500 people. Metsä Wood is part of Metsä Group.

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