Finnforest Corporation sells power plants to Vapo Oy
Finnforest Corporation and Vapo Oy have agreed the sale of Finnforest's power
plants to a company in which Vapo will have a clear majority shareholding -
Finnforest will be a minority shareholder with less than a fifth of the shares.
The new company will take over all of the seven power plants that are fully
owned by Finnforest. They generate heat for production processes and district
heating, as well as electricity, in Vilppula, Lappeenranta, Merikarvia, Kyrö,
Renko, Kaskinen and Soinlahti. The agreement does not involve Kumpuniemen Voima
in Suolahti, Punkavoima in Punkaharju or Kuningaslämpö in Hartola because
Finnforest is not the sole owner in these cases. The agreement does not have
any impact on employment.
Finnforest's aim has been to make power generation arrangements with a partner
who possesses the capability and resources for developing power as a business.
The agreement ensures Finnforest itself long-term access to adequate
cost-efficient power supplies.
The transaction will have a clear positive impact on Finnforest's cash flow and
results for 2004.
Timo Pekkola, Director, Wood Products Industry, phone +358 400 650 184
Markku Kauppinen, Technical Director, phone +358 500 264 726
Markko Ihamuotila, Director, Marketing and Communications, phone +358 50 598
Finnforest is the biggest wood products industry corporation in Europe. It has
an annual turnover of 1.9 billion euros and employs 8 000 people. Finnforest is
one of the core businesses of the Metsäliitto Group and operates in over 20
countries. Finnforest supplies wood building materials and wood-based
products,systems and services to customers in the construction, industrial, and
distribution and retail sectors. Finnforest's subsidiary, Moelven, is
responsible for operations in Norway, Sweden and Denmark. Further information:
www.finnforest.com and www.moelven.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.