Raute receives orders worth EUR 16 million to Russia

July 7, 2021

By: The Working Forest Staff

Raute Corporation has received orders worth approximately EUR 16 million from Segezha Group to Russia. The scope of orders includes new production lines and modernizations of existing lines to increase the veneer production capacity, and production lines to further process plywood. The machinery and equipment will be delivered to the expansion of Vyatskiy Fanernyi Kombinat’s, which is owned by Segezha Group, birch plywood mills in Kirov region. 

The ordered machinery and equipment will be delivered in 2022 and production on the new lines will be started mostly during the last part of 2022. The equipment will be engineered and produced mostly in Raute’s production unit in Lahti, measuring devices and analyzers, however, in the Kajaani unit, and also in the company’s partnership network.

Segezha Group (Moscow Exchange: SGZH) is a leading Russian vertically integrated holding company in the forest industry performing a full cycle of operations from logging to advanced wood processing. The Group has facilities in 11 countries, including Russia, and exports its products to more than 100 markets worldwide.

Raute has previously, in 2006 and 2017, delivered two production processes for the manufacture of birch plywood to Vyatskiy Fanernyi Kombinat, part of the Segezha Group, in Kirov region. Segezha Group also has a large birch plywood mill under installation and commissioning phase in Galich, Kostroma region, the production process to which is also delivered by Raute (stock exchange release on October 1, 2019).

Segezha Group’s experiences in the resource efficiency of the processes previously delivered by Raute and Raute’s delivery capability had an influence when Segezha Group selected the supplier. Also, Raute’s substantially improved serviceability in the Russian market, for instance by establishing a Service Center in Kirov in 2019, had an influence when selecting Raute as the supplier. The scope of the order serves as proof of Raute’s leading position in the know-how on the entire plywood production process and in significant increases in the production capacities of plywood mills.

The present new order has no impact on Raute’s outlook for 2021. Raute’s net sales are expected to grow in 2021 and operating profit to improve from 2020. Raute will comment its outlook for 2021 next time in its half-year financial report to be published on July 23, 2021.


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