Raute - Company Announcement

Raute received a new order worth EUR 31 million to Estonia - Profit outlook improved

Nastola, Finland, 2015-03-25 09:00 CET (GLOBE NEWSWIRE) -- RAUTE CORPORATION
STOCK EXCHANGE RELEASE 25 MARCH 2015 at 10:00 a.m. 


RAUTE RECEIVED A NEW ORDER WORTH EUR 31 MILLION TO ESTONIA - PROFIT OUTLOOK
IMPROVED 

Raute Corporation has received orders worth approximately EUR 31 million for
the machinery and equipment from Kohila Vineer Ou, a company of Latvijas
Finieris Group. The ordered machinery and equipment will be delivered to
Estonia, for the expansion of the veneer mill in Kohila, near Tallinn. The
scope of delivery includes drying, composing, patching, scarf jointing, lay-up
and pressing, sawing, grading, overlaying and by-product handling lines. The
deliveries will commence in the autumn 2015 and plywood production in Kohila
will start during the spring and summer 2016. 

Raute's strong expertise concerning the entire production process of plywood
manufacturing can be seen in the scope of the delivery. The previous deliveries
successfully completed by Raute to Kohila Vineer Ou and other mills of its
parent company Latvijas Finieris AS had an influence when selecting the
supplier. 

Latvijas Finieris is one of the largest birch plywood producing companies in
the world with production in all Baltic countries and in Finland. Latvijas
Finieris has made investments during several past years to systematically
increase its production capacity and develop the quality and productivity.
Through this investment, Latvijas Finieris will expand the veneer mill in
Kohila for plywood manufacturing. The annual capacity of the mill will be
45,000 cubic meters high-quality birch plywood. 

The present new deal worth EUR 31 million will improve Raute's profit outlook
for 2015. Raute's net sales for the full year 2015 are expected to grow clearly
and operating profit is anticipated to improve clearly from the year 2014. The
company has previously estimated net sales to grow and operating profit to
improve. 


RAUTE CORPORATION
Tapani Kiiski
President and CEO


FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3500,
mobile +358 400 814 148 
Ms. Arja Hakala, CFO, Raute Corporation, tel. +358 3 829 3293, mobile +358 400
710 387 

DISTRIBUTION:
NASDAQ OMX 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 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 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 2014
were EUR 94.0 million. The Group's headcount at the end of 2014 was 587. 

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