Metsä Group divests 75,000 m3/year spruce sawmill in Reopalu, Estonia, to Combimill, an Estonian pine lumber producer; Combimill's acquisition of Metsä Wood Eesti includes agreements on raw material procurement, by-product and sawn timber sales
June 10, 2014
– On 10 June 2014, Metsäliitto Cooperative, the parent company of Metsä Group, agreed on the divestiture of the entire share capital of its subsidiary Metsä Wood Eesti AS to the Estonian Combimill OÜ. Simultaneously with the transaction, the parties have agreed on commercial cooperation in raw material procurement as well as by-product and sawn timber sales. The transaction will not have a significant impact on Metsä Wood’s financial results.
"This arrangement is in line with Metsä Wood’s strategy of industrial efficiency and investment in resources in the continuous development of the competitiveness and productivity of Metsä Wood’s core business", said Esa Kaikkonen, Executive Vice President of Metsä Wood, commenting on the transaction.
Metsä Wood Eesti AS is the Estonian subsidiary of Metsä Wood and its sawmilling activities are located at the production unit in Reopalu, Järva County, central Estonia. The annual capacity of the Reopalu sawmill is 75 000 m3 of spruce timber. Turnover of Metsä Wood Eesti AS amounted to approximately EUR 16 million last year and the company employs 38 people. Combimill OÜ is a prominent Estonian producer of pine sawn timber with a production facility located in Kõidama, Estonia. The finalisation of the transaction is subject to approval by the Estonian Competition Authority. The transaction is expected to be completed latest by the end of Q3/2014.