Raute Canada announces €4M profit from sale of Vancouver area factory following relocation of operations this summer
October 1, 2010
– Raute Canada Ltd., a Raute Group company, has sold its factory facility in the Vancouver area in Canada. Raute Group realized a profit before tax of approximately EUR 4 million from the sale.
The Raute's business unit in Canada serves the veneer and LVL industry in North America. The operations of the unit were relocated to newly leased facilities in the summer. The facilities are better configured to serve the needs of the current operational model and market needs. In conjunction with the relocation, production investments were carried out to improve productivity and shorten delivery times. The Raute's business unit in Canada employs approximately 50 persons.
Raute has previously estimated net sales for 2010 to increase and the operating result to improve from the year 2009. The company has also announced that achieving a positive operating result and its amount depend on the order intake. The finalized real estate sale improves the Group's profit prospects. In 2010, net sales will increase and the operating result will be positive.