Raute received an order worth EUR 30 million to Finland
RAUTE CORPORATION STOCK EXCHANGE RELEASE 5 MARCH 2015 at 10:15 a.m.
RAUTE RECEIVED AN ORDER WORTH EUR 30 MILLION TO FINLAND
Raute Corporation has received an order worth EUR 30 million for the machinery and equipment of a Laminated Veneer Lumber (LVL) production line from Stora Enso Wood Products Oy. The ordered LVL line will be delivered to Stora Enso's mill in Varkaus, Finland. The machinery and equipment will be manufactured at Raute's Nastola, Shanghai and Kajaani plants and delivered in the beginning of the year 2016. The production line will be started in the summer 2016.
The annual capacity of the future LVL production line in Varkaus will be around 100,000 cubic meters. The raw material for the LVL line will be softwood supplied from the surrounding region. Raute's leading technology, position as a supplier of LVL lines all around the world and reference deliveries of mill-scale projects were the convincing factors, resulting in Raute to receive the order.
Increasing popularity of wood in construction and furniture will boost the demand for LVL worldwide and especially in Europe in the years ahead. Stora Enso is one of the leading producers of sawn timber in Europe. Through this investment Stora Enso broadens its offering to veneer-based products and meets the growing urban construction needs, serves new geographic areas and markets and offers its customers a wider range of wood product solutions.
The present deal worth EUR 30 million will strengthen Raute's order book for 2015. The development of order book supports Raute’s previous profit outlook, according to which Raute's net sales are expected to grow and operating profit is anticipated to improve from the previous year 2014.
RAUTE CORPORATION
Tapani Kiiski
President and CEO
FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3500
, mobile +358 400 814 148Ms. Arja Hakala, CFO, Raute Corporation, tel. +358 3 829 3293
, mobile +358 400 710 387DISTRIBUTION:
NASDAQ OMX Helsinki Ltd, main media, www.raute.com
RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood and LVL (Laminated Veneer Lumber). The technology offering covers machinery and equipment for the entire production process. As a supplier of mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in Nastola, Finland. Its other production plants are in the Vancouver area of Canada, in the Shanghai area of China, and in Kajaani, Finland. Raute’s net sales in 2014 were EUR 94.0 million. The Group’s headcount at the end of 2014 was 587.
More information about the company can be found at www.raute.com