UPM Plywood signs preventative, scheduled maintenance agreement with Raute for mills in Finland, Russia and Estonia with combined annual capacity of one million m3

Wendy Lisney

Wendy Lisney

Mar 30, 2012 – Globe Newswire

NASTOLA, Finland , March 19, 2012 (press release) – Raute Corporation has signed a special maintenance and spare parts services agreement with UPM Plywood for their Pellos, Jyväskylä, Savonlinna, Joensuu, Kalso, Chudovo (Russia) and Otepää (Estonia) plywood mills. The value of the agreement will not be disclosed.

With this agreement, effective as of April 1, 2012, Raute will for its part be responsible for preventive maintenance inspections and scheduled maintenance programs of separately agreed production lines at UPM's plywood mills. The Raute special maintenance programs focus on the optimizing of the use of proactive, condition-based maintenance and are based on Raute's know-how of its own equipment. The target is to secure trouble-free production and further development of the machinery and equipment through preventive, well scheduled and appropriate maintenance.

Mr. Mika Kekki, Director, Operations and Spruce production at UPM Plywood, says: "We are very pleased to sign this deal. Raute has been the major machine supplier in our mills and thus this service agreement is a natural continuation for our co-operation. In spite of the deal, UPM Plywood possess still strong own maintenance forces; both quantitative and quality point of view."

UPM Plywood is Europe's leading manufacturer of high-quality plywood and veneer. The nine mills have a total annual production capacity of about 1 million m3.

"This agreement enhances the strategic goals of Raute and enables the development of long-term co-operation between UPM and Raute", says Mr. Timo Kangas, Group Vice President at Raute.

Further information: Timo Kangas, Group Vice President, EMEA, tel. +358 40 715 0474, timo.kangas@raute.com Petri Lakka, Group Vice President, Technology services, tel. +358 40 521 1087, petri.lakka@raute.com

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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 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 in Canada, in the Shanghai area in China, and in Kajaani, Finland. Raute's net sales in 2011 were EUR 74.3 million. The Group's headcount at the end of 2011 was 464.

More information about the company can be found at www.raute.com.

SOURCE: Raute Corporation


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