Raute - Company Announcement

Raute received an order of over EUR 17 million to Poland

Lahti, Finland, 2016-08-22 18:15 CEST (GLOBE NEWSWIRE) -- RAUTE CORPORATION
STOCK EXCHANGE RELEASE 22 AUGUST 2016 at 7:15 p.m. 


RAUTE RECEIVED AN ORDER OF OVER EUR 17 MILLION TO POLAND


Raute Corporation has received an order worth around EUR 17.5 million for
Laminated Veneer Lumber (LVL) equipment from Steico Społka z o.o., the Polish
subsidiary of the leading German timber construction systems and wood fiber
insulation manufacturer Steico SE. The ordered equipment will be Steico´s
second LVL line delivered to Steico's LVL mill in Czarna Woda, Poland,
comprising: veneer drying line, dry veneer grading, composing and scarfing
lines as well as LVL lay-up line, pre-press and hot press. The equipment
represents the latest technology in its field. 

This order is related to the second phase of the LVL manufacturing project,
which Steico and Raute initiated in June 2014. The equipment ordered under the
first phase of that project was delivered, installed and the mill started up in
late summer 2015, with LVL production being ramped up during the winter of
2015/2016. This new order reflects Steico's trust in the positive development
of the LVL markets, as well as the partnering and successful co-operation
between Steico and Raute during the development of the Czarna Woda LVL site.
The total annual capacity of Steico's LVL mill will be 160,000 m3 when the new
line is in full production, doubling the LVL capacity installed during the
first phase in Czarna Woda. 

Steico (www.steico.com) is one of the leading wooden construction material
producers in Europe. The company´s current product offering comprises wood
fiber insulation materials, sarking and sheathing boards, ETICS (external
thermal insulation compound systems), I-joists, hardboards and LVL. Raw
material for Steico's LVL will be mostly Polish grown pine, which has proven to
provide good technical characteristics for structural LVL. 

The machinery will be manufactured at Raute's Nastola, Shanghai and Kajaani
plants, and delivered during the first half of 2017. The full scale production
of the future LVL mill is planned to be reached by mid-2018. 

The present new order has no impact on Raute's outlook for 2016. Raute's net
sales and operating profit will be on the same level as in 2015. 


RAUTE CORPORATION
Tapani Kiiski
President and CEO



FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, mobile +358 400 814 148
Potential call requests to Mr. Tapani Kiiski through: Eija Salminen, Group
Executive Assistant, tel. +358 50 3801517 


DISTRIBUTION:
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 and LVL (Laminated Veneer Lumber). The technology
offering covers machinery and equipment for the customer’s 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 technology services ranging from spare parts deliveries to
regular maintenance and equipment modernizations. Raute’s head office is
located in the Nastola area of Lahti, Finland. Its other production plants are
in Kajaani, Finland, the Vancouver area of Canada and in the Shanghai area of
China. Raute’s net sales in 2015 were EUR 127.3 million. The Group’s headcount
at the end of 2015 was 646. 

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