Metsäliitto to close the Teuva sawmill and improve the efficiency of the Kaskinen upgrading unit

11/12/2008
Metsäliitto Group Press Release 11 December 2008

Metsäliitto will close the Teuva sawmill in southern Osthrobothnia, Finland. In
order to improve the competitiveness of its sawmilling business in an
increasingly challenging operational environment, Metsäliitto will centralise
its sawing operations into larger and more efficient units. 
 
"The production adjustment measures, which include the closure of the Soinlahti
and Teuva sawmills, are necessary so that we can improve the competitiveness of
our entire Solid Wood Business Line. The measures are based on our relatively
weaker competitiveness in the export market, mainly due to logistics and wood
raw material costs, and on low product prices due to overcapacity in the
European sawn timber market," says Ole Salvén, Group Executive Vice President
of Metsäliitto Wood Products Industry, Finnforest. 
 
As a result of statutory labour negotiations, the Teuva sawmill will be closed
during January 2009. Additionally, Metsäliitto will boost the operations of the
Kaskinen upgrading unit to meet the new production structure, and adjust the
personnel resources included in operations shared by Teuva and Kaskinen to suit
the new situation. A total of 28 jobs will be lost. For those who lose their
job, Metsäliitto will do its best to help them find a new job either within the
Metsäliitto Group or in other companies. In connection with the statutory
labour negotiations, a support package has been agreed on which facilitates
employment and secures the financial position of the personnel in the new
situation. 
 
The further processing of Teuva's production has taken place in Kaskinen. With
its single production line, the Teuva sawmill has manufactured approximately
90,000 square metres of pine and spruce sawn timber a year. Part of Teuva's
production will be reassigned to other Metsäliitto sawmills around this area. 
 
After the closure of the Soinlahti and Teuva sawmills, the Metsäliitto Solid
Wood Business Line will have eight sawmills in Finland, located in Eskola,
Kemi, Kyrö, Kyröskoski, Lappeenranta, Merikarvia, Renko and Vilppula. The
production of all the sawmills is currently being curtailed by different
measures. 
 
Further information:
Ole Salvén, Group Executive Vice President, Metsäliitto Wood Products Industry,
Finnforest, tel. +358 10 469 4870 
Timo Pekkola, Senior Vice President, Solid Wood Business Line, tel. +358 10 469
4743 
Johanna Kankkunen, Communications, Metsäliitto Wood Products Industry,
Finnforest, tel. +358 50 350 4005