Ruukki Group purchases majority interest in Junnikkala and Pyyn Saha sawmills in
Ostrobothnia.
Ruukki Group focuses on wood-based industrial business operations. Currently the
group operations are located mainly in Finland, but in future the targeted
emphasis is principally in Russia.
At present Ruukki Group expands its operations in sawmilling business through
acquisitions. In addition, opportunities to make structural changes in house
building and care services are being investigated with a target of potentially
exiting these businesses.
Ruukki Group has agreed to acquire a majority interest in Junnikkala group.
Junnikkala Oy practises sawmilling business in Kalajoki, Ostrobothnia, and its
subsidiary Juneropt Oy specialises in further processing of sawn wood targeted
especially for prefabricated housing business. The annual production capacity of
the Junnikkala sawmill is at present 130,000 cubic meters of sawn wood. At the
same time, Junnikkala Oy has agreed to acquire all shares of Pyyn Saha ja
Höyläämö Oy, which operates in Oulainen. The current annual production capacity
of Pyyn Saha ja Höyläämö Oy is close to 40,000 cubic meters.
The business and investment plans for the newly formatted Junnikkala group are
based on increasing the total combined capacity to 300,000 cubic meters during
the next two to three years. In addition, further processing will be developed
in the planing and painting operations. The Oulainen sawmill will be focusing on
sawing smaller logs, whereas Kalajoki sawmill will be concentrating on further
processing in addition to sawing operations. The consolidated revenue of the
newly formed Junnikkala group is estimated to have totalled nearly EUR 50
million in 2007 and the operating profit to have been positive.
As a result of these arrangements, the annual production capacity of Ruukki
Group's sawmilling business will increase immediately from approximately 200,000
cubic meters to nearly 400,000 cubic meters, and by 2010 the total capacity is
to reach 500,000 cubic meters level.
The current Junnikkala shareholders will continue as minority shareholders of
Junnikkala Oy. The arrangement will be carried out through a combination of
share transactions, directed share issue and share swap, after which Ruukki
Group will have a 51 % ownership in Junnikkala group. The total investment of
Ruukki Group is at the present stage a total of EUR 9 million of which
approximately 40 % is to be used for the company's future investments according
to business plans.
”The arrangement will support Ruukki Group's strategy to enhance wood-based
industrial operations. Moreover, this transaction will contribute to the target
of strengthening wood processing industry in Northern Finland.”, states Matti
Vikkula, CEO of Ruukki Group Plc.
“To get Ruukki Group's sawmilling business segment involved into Junnikkala
group will enable the implementation of the strong growth strategy of Junnikkala
and Pyyn sawmills. In the Ruukki's operating model entrepreneurship will stay as
a fundamental principle”, says Juha Junnikkala, Managing Director of Junnikkala
Oy.
The board of directors of Ruukki Group has decided to explore during the first
half of this year opportunities to make structural arrangements in the house
building business segment (Pohjolan Design-Talo Oy) and in the care services
segment (Mikeva Oy) with a target to dispose of those businesses. These
investigations will be made in co-operation with external advisors.
For additional information, please contact:
Matti Vikkula
CEO
Ruukki Group Plc
Tel. +358 45 6700 606
www.ruukkigroup.fi
Antti Kivimaa
Executive Vice President
Ruukki Group Plc
Tel. +358 400 501 780
www.ruukkigroup.fi
Juha Junnikkala
Managing Director
Junnikkala Oy
Tel. +358 44 558 1629
www.junnikkala.com