Metsäliitto Osuuskunta - Company Announcement

Metsä Group’s Wood Products Industry launches a EUR 100 million investment programme

Metsä Group Stock Exchange Release 8 June 2016 at 11.30 EET


Metsä Wood, the Wood Products Industry of Metsä Group, launches an investment
programme in its Kerto® LVL and plywood operations as part of its industrial
efficiency strategy. Thanks to the programme, planned to be implemented in
steps by the end of 2018, the company is able to better meet the globally
growing demand for its products and improve its competitiveness. The programme
includes a total of EUR 100 million investments in Finland and Estonia. 

A new birch veneer peeling and drying line is planned to be built in Äänekoski
to the Metsä Group’s Pulp and Paperboard Industries’ mill site. This veneer
production is planned to be processed in a new plywood mill to be constructed
in Estonia. Suolahti mill’s current birch veneer line is planned to be
transferred to Estonia. The total annual birch plywood production volume would
increase by approximately 30,000 cubic meters. 

Production of a new softwood based speciality product with an annual volume of
approximately 60,000 cubic meters is planned to be established at the Suolahti
mill. The final investment decision will be made at a later stage. 

The annual production capacity of the Kerto® LVL mill in Lohja is planned to be
increased by 20,000 cubic meters by replacing two oldest production lines with
one new line. The increased capacity combined with the higher product quality
enables strengthening of Metsä Wood’s position especially in markets outside
Europe. 

”These are major steps for Metsä Wood to grow and further improve cost
competitiveness. Demand for birch plywood is increasing especially in the light
transport industry. In Kerto® LVL business more capacity is needed to continue
growth in North America, in particular. Thanks to the investment programme a
notable result improvement will be achieved, fully from 2019 onwards,” says Esa
Kaikkonen, Executive Vice President, Metsä Wood. 

Approximately half of the EUR 100 million investments will be allocated to
Finland. Annual saw log consumption is expected to increase by almost 300,000
cubic meters. 

The investment programme is not expected to impact the total amount of Metsä
Wood’s mill personnel in Finland. Potential mill-specific personnel
implications will follow the statutory labour negotiation process. Considering
the changes in wood harvesting and logistics, the increase in employment in
Finland is expected to be approximately 100 person-years in total. About 200
new jobs are expected to be created in Estonia. 


METSÄ GROUP


For further information, please contact:
Esa Kaikkonen, Executive Vice President, Metsä Wood, tel. +358 10 469 4749
Juha Laine, Senior Vice President, Communications, Metsä Group, tel. +358 10
465 4541 


www.metsagroup.com

Metsä Group is a forerunner in bioeconomy utilising renewable wood from
sustainably managed northern forests. Metsä Group focuses on wood supply and
forest services, wood products, pulp, fresh forest fibre paperboards and tissue
and cooking papers. Metsä Group’s sales totalled EUR 5.0 billion in 2015, and
it employs approximately 9,600 people. The Group operates in some 30 countries.
Metsäliitto Cooperative is the parent company of Metsä Group and owned by
approximately 116,000 Finnish forest owners. 


www.metsawood.com

Metsä Wood provides competitive and environmentally friendly wood products for
construction, industrial customers and distributor partners. Metsä Wood
manufactures products from northern wood, a sustainable raw material of premium
quality. Metsä Wood's sales in 2015 were EUR 0.9 billion, and the company
employs about 2,000 people. Metsä Wood is part of Metsä Group.