RAUTE TO HAVE OVER EUR 12 MILLION IN ORDERS FROM RUSSIA
RAUTE CORPORATION STOCK EXCHANGE RELEASE 20 January 2011 at 1:45 p.m.
RAUTE TO HAVE OVER EUR 12 MILLION IN ORDERS FROM RUSSIA
Raute Corporation has received orders worth over EUR 12 million from OOO “Ilim Bratsk DOK” in Russia. The orders include, among others, two state-of-the-artpeeling lines and two drying lines to be delivered to Bratsk, Siberia, by the end of 2011.
Raute’s leading softwood plywood technology, solid references for successful deliveries to Russia and strong service capacity through a local after-salescompany all contributed to winning the order. One of Raute’s first-ever mill-scale deliveries was made in 1970 to Bratsk.
OOO “Ilim Bratsk DOK”’s plywood mill in Bratsk is the largest softwood plywood mill in Russia, and the only one to focus on the manufacture of softwood plywood. The raw material used is mainly Siberian pine and larch. The plywood mill’s annual production capacity totals approximately 200,000 cubic meters. The mill has long traditions and holds an established position in the markets. The current investment is the first in a large-scale modernization plan. The new equipment will entirely replace the mill’s current veneer production.
The RauteSmart peeling lines included in the transaction feature curtain lasers for the centering systemsto increase recovery and productivity, automatic scanning for veneer clipping as well as random stacking. RauteSmart drying lines include a non-stop feeding system, three-zone dryer with automatic adjustment of the drying conditions in each zone and automatic veneer grading based on color camera technology.
Russia is globally the leading manufacturer of birch veneer, although use of the vast softwood resources as a plywood raw material has been modest so far. The current investment will increase the Bratsk mill’s competitiveness and profitability to a level which Raute believes will boost the development of the Russian softwood plywood segment in general.
The strength and stiffness of softwood plywood are high, but it is softer and has more knots than birch plywood. On the other hand, softwood plywood is fairly light and easy to machine and nail. Typical end-uses include roof structures, floorings, walls and ceilings, non-visible structures in vehicles, packaging and boxes, construction site structures, fencing and shelters, and formwork with a limited number of concrete pourings. Softwood plywood with three thick veneer plies is also used as a wind barrier in construction thanks to its breathability and stiffness.
The machinery and equipment will be manufactured at Raute’s main production unit in Nastola, Finland, and by its partner network, except for the machine vision system, which will be manufactured at the Kajaani unit in Finland.
Raute will publish its net sales and financial performance information for 2010 and outlook for 2011 in the financial statements on February 15, 2011. This transaction is not included in the December 31, 2010 order book.
RAUTE CORPORATION
Tapani Kiiski President and CEO
FURTHER INFORMATION: Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3560, mobile +358 400 814 148
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd, main media, www.raute.com
RAUTE IN BRIEF:
Raute is a technology company serving the wood products industry worldwide. Its most important customers are the plywood and LVL industries. Raute is one of the world’s leading suppliers of mill-scale projects to these customer industries. The total service concept also includes technology services, with which Raute supports its customers throughout the entire life cycle of their investments. 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.
More information on the company can be found at: www.raute.com.