Raute Corporation
("Raute") has signed a contract worth
EUR 29 million
with AS Latvijas Finieris ("
Latvijas Finieris
"),
Latvia
for the delivery of technology to a plywood mill expansion. Following the terms of the contract, the project has become effective by signing of a delivery contract today.
Latvijas Finieris
, the leading producer of birch plywood in
Europe
and the
Baltic
countries, will expand their Verems,
Latvia
plywood factory to increase the production capacity by 35000 m3.
The order for Raute's technology includes all main production processes from veneer drying to plywood overlaying: veneer drying line, veneer scarf-jointing line, veneer composing lines, plywood layup line, plywood pressing line, panel trimming line, and panel overlaying line, with extensive service package and long-term on-site management. The lines are a complete solution compiled of the proven R5- and most modern automated R7-Series technologies. All lines are equipped with analyzers for grading and MillSIGHTS software for data capturing.
The ordered machinery and equipment will be delivered between
March 2024
and
June 2025
. The equipment will be manufactured at Raute's production units in Lahti and Kajaani in
Finland
, and in the company's partnership network.
This new expansion, which will be in full operation in 2025, is part of
Latvijas Finieris's
strategy to develop and innovate sustainable birch plywood production enabling further processing of special end products.
"We are happy to work with
Latvijas Finieris
on yet another project to promote resource-efficient society. We believe our unique solutions enable
Latvijas Finieris
in reaching their increased targets for sustainable plywood production", says
Mika Saariaho
, CEO of Raute.
Latvijas Finieris Group
is a multi-sectoral international company with key business in research, development, production, and sales of tailored birch plywood products under the brand Riga Wood. Their birch plywood and veneer factories are located in
Latvia
,
Lithuania
,
Estonia
and
Finland
. The plywood products and solutions are delivered to 32 industries world-wide. Further information on
Latvijas Finieris
can be found at www.finieris.lv.
Update concerning earlier announced customer project negotiations
In addition to the order with
Latvijas Finieris
announced with this stock exchange release, Raute also continues negotiations in relation to another mill-size customer project which was referred to in the stock exchange release dated
March 9, 2023
(Raute plans directed share issue, rights issue and junior loan to support targeted growth and strengthening of capital structure and proposes combination of share classes). Negotiations in relation to the project have progressed to the final phase and are expected to be completed during the coming months. Should the negotiations result into a binding delivery agreement, the total size of the agreement is expected to be around
EUR 45 million
. Customarily Raute announces larger projects only at the time that they become effective, typically after receiving the agreed advance payment. If negotiations relating to this project result into signing of a binding delivery agreement, Raute expects to announce more detailed information on the project only after receiving an advance payment.
RAUTE CORPORATION
Mika Saariaho
President and CEO
FURTHER INFORMATION:
Mr.
Mika Saariaho
, President and CEO, tel. +358 40 1549393
DISTRIBUTION:
Nasdaq Helsinki Ltd
, main media, www.raute.com
RAUTE IN BRIEF - Making
Wood Matter
Raute is the partner to future-proof the wood industry. Our technologies cover different production processes with supporting digital and analytics solutions for engineered wood products. Additionally, we offer full-scale service concept ranging from spare parts to regular maintenance and modernizations. Our innovative hardware and software solutions are designed to support our customers' efficient consumption of natural resources. In mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Raute's head office and main production is located in Lahti,
Finland
. The company's other production plants are located in Kajaani,
Finland
, the
Vancouver
area of
Canada
,
Changzhou, China
, and in
Pullman, WA
, USA. Raute's net sales in 2022 were
EUR 158.3 million
. The Group's headcount at the end of 2022 was 778. More information about the company can be found at www.raute.com
https://news.cision.com/raute-oyj/r/inside-information--raute-announces-the-receipt-of-an-order-of-eur-29-million-to-latvia-and-provides,c3757719
