Raute signs nonbinding €15M contract with Muling Kemian Wood Products to supply machinery and equipment for LVL plant in Muling, China
November 4, 2010
On November 3, 2010, Dalian Kemian Wood Products Co., Ltd published a press release concerning an LVL plant to be built in China. The production machinery and equipment for the plant will be delivered by Raute Group.
Raute and Muling Kemian Wood Products Co. Ltd., a subsidiary of Dalian Kemian Wood Products Co., Ltd, have signed contracts worth about EUR 15 million on the delivery of machinery and equipment for an LVL plant in Muling, China. The contract is not binding, and the order is therefore not yet included in Raute's order book. The contract is expected to enter into force in November 2010 once the details of the contract have been finalized, as a condition for the contract to take effect. Raute will publish an announcement when the contract takes effect.
The current signed contract will not have an impact on Raute's net sales and financial performance forecasts for 2010. Net sales for this year will increase and operating profit will be positive.
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. Raute's net sales declined significantly due to the difficult market situation in 2009 and equaled EUR 36.6 million. The number of personnel at the end of 2009 was 524. More information on the company can be found at: www.raute.com.