KOHILA, ESTONIA - 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 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.

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