Ponsse to Expand its Production in Brazil
PONSSE OYJ STOCK EXCHANGE RELEASE 16 DECEMBER 2005, 9 a.m.
Ponsse to Expand its Production in Brazil Ponsse is to initiate production and product development of eucalyptus-debarking harvesting heads in Brazil. This is a continuation to Ponsse's strategy for Latin America. The arrangement will also increase the manufacture of forwarders as well as control systems and measuring instruments at Ponsse's factories in Finland. By using Latin American eucalyptus as raw material, forest industry has good prospects for growth. In Brazil alone, the current annual volume of eucalyptus harvesting, 100 million m3, will significantly increase in the future. Both South American and the world's leading forest companies have invested, and will continue to invest, in increasing their production capacity and in establishing production plantations for the rapidly growing eucalyptus crop. As a result, the requirements imposed on the supply of industrial raw material will increase. "We want to be close to our customers, preparing and developing the world's most efficient and comprehensive timber harvesting solutions for local conditions. Brazil is the best possible location due to its industrial structure and long traditions in the forest industry, making it extremely well suited for our industrial operations in South America. Ponsse will establish product development and production operations as well as a maintenance service and training centre for Latin America near Sao Paulo," says Arto Tiitinen, President and CEO of Ponsse Oyj. Vieremä, 16 December 2005 PONSSE OYJ Arto Tiitinen President and CEO For further information, please contact: Arto Tiitinen, President and CEO, Ponsse Oyj tel. +358 (0)400 566 875 DISTRIBUTION Helsinki Stock Exchange Major media www.ponsse.com -------------------------------------------------------------------------------- Ponsse Oyj manufactures forest machines and timber harvesting-related information technology as well as producing services relating to their effective use. Ponsse Oyj's shares are quoted on the main list of the Helsinki Stock Exchange. Export and foreign operations account for approximately 65% of the company's turnover. The group employs more than 700 people and has operations in nearly 30 countries.