Raute Corporation has received orders worth approximately EUR16 million from Segezha Group in Russia. The scope of orders includes new production lines and modernisations of existing lines to increase the veneer production capacity, and also production lines to further process plywood. The machinery and equipment will be delivered to the expansion of subsidiary Vyatskiy Fanernyi Kombinat’s birch plywood mills in the Kirov region. The ordered machinery and equipment will be delivered in 2022 and production on the new lines will start 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 analysers, 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 manufacturing of birch plywood to Vyatskiy Fanernyi Kombinat. Segezha Group also has a large birch plywood mill under installation and commissioning phase in Galich, Kostroma – of which the production process was also delivered by Raute (stock exchange release on October 1, 2019).
Raute has substantially improved service ability in the Russian market, for instance by establishing the Service Center in Kirov in 2019.
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 23 July 2021.
