Birch veneer producer Latvijas Finieris invests €6M in Estonian acquisition Kohila Vineer, places order with Raute to renew entire production line

NASTOLA, Finland , November 16, 2011 (press release) – Raute Corporation has received orders worth over EUR 6 million from Kohila Vineer Ou in Estonia for the machinery and equipment of a veneer mill. The orders include, among others, a state-of-the-art peeling line as well as log and by-products handling lines to be delivered to Kohila, near Tallinn.

Raute's strong expertise in veneer production can be seen in the scope of the delivery. Through this investment, the Kohila mill will renew its entire veneer production to align Raute's veneer production concept. The machinery and equipment deliveries earlier made by Raute to Latvijas Finieris AS, being the parent company of Kohila Vineer Ou, had an influence when selecting the deliverer.

Latvijas Finieris is one of the largest birch veneer producing companies in the world with production in all Baltic countries. Kohila Vineer Ou was acquired by Latvijas Finieris last summer. The earlier owner of Kohila Vineer Ou was placed in liquidation some three years ago.

The RauteSmart peeling line included in the delivery has among others a machine vision application to increase wood recovery and productivity. The application controls clipping pieces of veneer smaller than a full sheet and sorts veneer in different quality grades.

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.

These orders will not have an impact on Raute's outlook for 2011. Net sales will increase from the year 2010, and the operating result is estimated to remain at the break-even level or be somewhat in the negative. The operating result will depend on whether the new orders forecast for the end of the year are realized and on the amount of revenue generated by them for 2011.

Raute Corporation will publish its financial statements for 2011 on Tuesday, February 14, 2012.

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 repairs and 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 of Canada, in the Shanghai area of China, and in Kajaani, Finland. Raute’s net sales in 2010 were EUR 62.9 million. The Group’s headcount at the end of 2010 was 495.

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