RAUTE CORPORATION INSIDE INFORMATION 30 August 2021 at 3:40 p.m.
RAUTE RECEIVED ORDERS WORTH APPROXIMATELY EUR 18 MILLION TO RUSSIA
Raute Corporation has received orders worth approximately EUR 18 million from company called Red October LLC to Russia. The order includes machines for all main production processes to a new birch plywood and veneer mill: a log handling line, three peeling lines, a veneer drying and grading line, plywood layup and pressing line and a trimming line. The equipment will be delivered to Red October's birch plywood and veneer mill located in Perm, Russian Federation. A service agreement for several years as well as extensive digital services are also included in the scope.
The production capacity of the green field mill will be 45 000 m3 of birch plywood and 60 000 m3 of birch veneer to be sold to other plywood and furniture makers. Production in the new mill is planned to start in 2023.
The ordered machinery and equipment will be delivered between August and November 2022. The equipment will be engineered and produced in Raute's production units in Lahti, Shanghai and Kajaani, and also in the company's partnership network.
Red October group of companies is the largest sawn timber producing factory in the Perm region, Russia. It was founded already in 1910. In the recent years the company has developed its business systematically e.g. by building a new sawmill 2013. Now Red October will expand its business in birch plywood and veneer production. The company has concessions to a forest area with license to harvest more than 1 million cubic meter of timber per year. Red October's operations cover the full timber supply chain from forest management, harvesting, transportation, sawmilling and delivery of sawn timber to its clients in more than 30 countries across 3 continents. With the new project in partnership with Raute, the company expects to double its current production capacities at all stages of production, and reach maximum utilisation of forest resources including both coniferous (spruce and pine) and deciduous (birch, aspen) species. Red October is accredited with ISO, FSC and PEFC certificates and company's main mission is development through state of the art technology.
Raute's strong expertise in the entire plywood production process was the main factor for red October to select Raute as the full scope supplier for their project. Raute's service offering both through local presence in the Russia and through digital channels also had a contribution for the supplier selection.
The present new order has no impact on Raute's outlook for 2021. Raute's net sales are expected to grow in 2021 and operating profit to improve from 2020.
President and CEO
Mr. Tapani Kiiski, President and CEO, mobile +358 400 814 148
Nasdaq Helsinki Ltd, main media, www.raute.com
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, LVL (Laminated Veneer Lumber) and sawn timber. Its technology offering covers the entire production process for veneer, plywood and LVL and special measurement equipment for sawn timber. 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 technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute's head office is located in Lahti, Finland. The company's other production plants are located in Kajaani, Finland, the Vancouver area of Canada, the Shanghai area of China and in Pullman, Washington, USA. Raute's net sales in 2020 were EUR 115.0 million. The Group's headcount at the end of 2020 was 751. More information about the company can be found at www.raute.com.