Metsäliitto Wood Products Industry to sell its Romanian blockboard factory to Holzindustrie Schweighofer
24/11/2009
Metsäliitto Wood Product Industry continues to focus on its core businesses. Metsäliitto has made an agreement regarding the sale of its shareholding in Finnforest Baco Production s.r.l. to the subsidiaries of Austrian company Holzindustrie Schweighofer.
The Company, operating in Comanest, Romania, has a total annual capacity of 80,000 cubic metres of blockboard. The Company's annual net sales amount to approximately EUR 20 million, and it employs over 400 people.
"Blockboard production in Romania is not our core business and by agreement we can direct resources to other operations according to our strategy. We will create some profit from this transaction", says Ole Salvén, Group Executive Vice President, Metsäliitto Wood Products Industry.
Finnforest Baco had produced material for Metsäliitto Wood Product Industry's solutions for shuttering business. Metsäliitto will continue to trade in this market sector with a full product portfolio.
Finnish wood provides solutions for international demand
After the transaction, the core of Metsäliitto Wood Products Industry is almost completely in Finland where Finnforest products are manufactured from Finnish wood in 14 different production facilities in all. In addition, Wood Products Industry has one sawmill in Estonia, and products are further processed in 15 different facilities across Europe.
"According our strategy, we want to focus to offering more highly processed products and solutions to selected end-user categories. Finnish wood products and construction solutions are highly appreciated. Ecological sustainability of wood products is one of our most important strengths in the future, and during the upturn in the economy we have all possibilities to become even more significant actor on this market" Salvén summarises.
In the Romanian agreement, Metsäliitto Wood Products Industry was advised by Raiffeisen Investment AG. The sale of Finnforest Baco Production s.r.l. is subject to the approval of the Romanian competition authority.
Further information:
Ole Salvén, Executive Vice President, tel. +358 10 465 4870
Satu Holm-Jumppanen, Communication Manager, tel. +358 50 302 3416