Finnforest Corporation sells power plants to Vapo Oy

 

Finnforest Corporation and Vapo Oy have agreed the sale of Finnforest’s power plants to a company in which Vapo will have a clear majority shareholding – Finnforest will be a minority shareholder with less than a fifth of the shares.

The new company will take over all of the seven power plants that are fully owned by Finnforest. They generate heat for production processes and district heating, as well as electricity, in Vilppula, Lappeenranta, Merikarvia, Kyrö, Renko, Kaskinen and Soinlahti. The agreement does not involve Kumpuniemen Voima in Suolahti, Punkavoima in Punkaharju or Kuningaslämpö in Hartola because Finnforest is not the sole owner in these cases. The agreement does not have any impact on employment.

Finnforest’s aim has been to make power generation arrangements with a partner who possesses the capability and resources for developing power as a business. The agreement ensures Finnforest itself long-term access to adequate cost-efficient power supplies.

The transaction will have a clear positive impact on Finnforest’s cash flow and results for 2004.

Further information:
Timo Pekkola, Director, Wood Products Industry, phone +358 400 650 184
Markku Kauppinen, Technical Director, phone +358 500 264 726
Markko Ihamuotila, Director, Marketing and Communications, phone +358 50 598 7014

Finnforest is the biggest wood products industry corporation in Europe. It has an annual turnover of 1.9 billion euros and employs 8 000 people. Finnforest is one of the core businesses of the Metsäliitto Group and operates in over 20 countries. Finnforest supplies wood building materials and wood-based products,systems and services to customers in the construction, industrial, and distribution and retail sectors. Finnforest’s subsidiary, Moelven, is responsible for operations in Norway, Sweden and Denmark. Further information: www.finnforest.com and www.moelven.com.