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Raute Corporation’s contract with a Chinese customer to deliver Raute’s machinery to Russia, which was signed and published on 20 May 2009, has not become effective in the estimated schedule in June, due to a reason not depending on Raute. Thus, the machinery of a veneer mill worth about EUR 8  million according to this contract is not included in the company’s order book as of 30 June 2009. Both the customer and Raute continue to work towards making the contract effective.

The market situation in the wood products industry has remained difficult and no new significant investments have been started. Raute will continue to adapt its  operations to the weak demand and the low order book. Due to the low order book, weak demand and the postponements of investment decisions relating to mill-scale projects, Raute’s net sales will decline significantly in 2009. Operating profit will be negative, despite the adaptation                                        measures taken.

Raute will publish its interim report for January – June 2009 on 4 August 2009.

Raute Corporation has signed a contract worth about EUR 8 million with the Chinese-Russian investment company Henda-Siberia Co LTD to deliver the machinery of a new veneer mill to be built in the Tomsk region in Russia. The contract comprises a log handling line, a peeling line, and a veneer drying and grading line. The contract is estimated to become effective in June 2009. The machinery deliveries will take place in late 2009 and early 2010.

Henda-Siberia Co LTD is a Russian company owned by Yantai Northwest Forestry Co., Ltd. and the Chinese Investment Promotion Agency of Yantai Economic and Technological Development Area. The new veneer mill will be part of a large wood processing project, Tomsk Industry Garden, realized in cooperation by the Chinese central government and Henda-Siberia Co LTD.

This signed contract, once becoming effective, does not have any impact on the previously announced estimate on Raute’s 2009 net sales to decline clearly from the previous year and operating profit to be negative.

via RAUTE SIGNS A CONTRACT WITH CHINESE INVESTORS TO DELIVER VENEER MILL MACHINERY TO RUSSIA.

In the first quarter of 2009, group revenues at Sonae Industria plunged by 30 % to €346m (Jan.-March 2008: 498m) compared to those for the same period in the previous year. Even against the fourth quarter of 2008, which had already been weak anyway with turnover of €373m, the company suffered a decline of 7 %. In contrast, the results figures improved again slightly in spite of the continuing falling prices compared to those of the last three months of 2008.

via EUWID: Sonae Industria revenues down by 30 %.

In January-March 2009 production indices as regards woodworking and manufacturing wooden products made up 70.8% as compared to January-March 2008, as regards pulp and paper sector (including publishing and printing) – 82%, and as for harvesting – 88.2%.

Changes on the outer markets (incl. market saturation, a sales slowdown and decline in prices on wood products) led to suspension of production and shipment at some enterprises, which resulted in considerable reduction of production output. January-March 2009 watched decrease in fiberboards (hard) production by 43%, plywood – 39.5%, sawn timber – 24.4% as compared to January-March 2008.

However, QI 2009 fixed continuing growth in wooden container production, i.e. production index reached 104.3%.

Pulp and paper production decreased by 14.9% due to the decreased production output of market pulp (by 26.2%), cardboard (-19.7%) and paper (-11.6%).

China is to invest 1.6 bln USD in construction of a plywood plant and 10 facilities for chemical and mechanical wood processing in the Tomsk region. January 2009 LLC Henda-Siberia started realization of an eight year investment project. LLC Henda-Siberia (China-Russia) started designing works of the first stage of plywood plant with capacity making up 200 thousand cubic meters per year.

10 plants for chemical and mechanical wood processing, including (plant for MDF, OSB production, shop for planed molding production, pulp and paper mill) are to be constructed in the Tomsk region by 2016. The plants are to process about 4.5 mln cubic meters – in order to provide the necessary volume of timber there will be launched 18-20 harvesting companies. All expenses are to be paid by the Chinese party. Russian party is to provide a forest area of 95 ha and logging machinery purchased in Canada.

According to experts, China is ready to invest in Russian woodworking industry due to lack of timber in China and favorable position of both countries.

via RUNA.INFO – China is to invest 1.6 bln USD in Russian woodworking industry.

* Economic crisis to pressure Sonae Industria 2009 sales

* Company says not under financial strain, credit lines open

* Eyeing consolidation opportunities in South America

LISBON, 22 Jan (Reuters) – Portugal’s Sonae Industria, the world’s second largest wood panel maker, may close factories and sell assets in response to weakening demand during the global crisis, CEO Carlos Bianchi de Aguiar said.

Sonae Industria has 34 factories in nine countries and its business depends on the construction, furniture and decoration sectors, all of which are among the hardest hit by the economic downturn.

The company earlier this month announced downsizing and production line cuts at factories in Portugal and Ireland. “The situation we are in right now has no precedents, it is all open,” de Aguiar said when questioned about possible factory closures, layoffs and asset sales.

On Tuesday, Sonae Industria’s German peer Pleifderer said it wants to have a key role in any consolidation of the sector and has a 600 million euro credit line to do so and may conduct a capital hike if required.

In a written interview with Reuters, de Aguiar said the company’s strategy “has to be sufficiently flexible and open to all possibilities”.

Sonae Industria’s swing to a 27 million euro loss in the first nine months of 2008 from a 63 million euro profit a year earlier was caused not only by a 12 percent drop in sales, but also by higher prices of raw materials.

De Aguiar said, however, that the company is not under financial pressure as it has credit lines ready to be used, but he did not provide any figures for these.

He added that Sonae Industria is still eyeing M&A opportunities in South America after talks for a merger of its Brazilian operations with Chile’s Masisa fell through last year. (Reporting by Elisabete Tavares; Writing by Shrikesh Laxmidas; Editing by Axel Bugge and Jon Loades-Carter)

via INTERVIEW-Sonae Industria may close factories, sell assets By Reuters.

Raute Oyj:n nimitysvaliokunta on ilmoittanut ehdottavansa 2.4.2009 kokoontuvalle varsinaiselle yhtiökokoukselle, että hallituksen jäsenten lukumääräksi vahvistetaan kuusi ja että hallituksen nykyisistä jäsenistä Ilpo Helander, Mika Mustakallio, Panu Mustakallio ja Sinikka Mustakallio valitaan uudelleen. Lisäksi
nimitysvaliokunta ehdottaa, että uusiksi hallituksen jäseniksi valitaan Erkki Pehu-Lehtonen ja Risto Hautamäki. Hallituksen puheenjohtajaksi ehdotetaan valittavaksi Erkki Pehu-Lehtonen ja varapuheenjohtajaksi edelleen Sinikka Mustakallio. Ehdotetut henkilöt ovat antaneet suostumuksensa valintaan. Jarmo Rytilahti, joka on toiminut Rauten hallituksen jäsenenä vuodesta 2003 ja puheenjohtajana vuodesta 2004, on ilmoittanut jäävänsä pois Rauten hallituksesta.

Hallituksen uudeksi jäseneksi ehdotettu diplomi-insinööri Erkki Pehu-Lehtonen, s. 1950, toimii tällä hetkellä Pöyry Oyj:n hallituksen osoittamissa neuvonantotehtävissä. Hän on ollut Pöyry-yhtiöiden palveluksessa vuodesta 1994 lähtien ja toimi Pöyry Oyj:n toimitusjohtajana vuodesta 1999 toukokuuhun 2008 saakka. Erkki Pehu-Lehtonen toimi Pöyry Oyj:n tytäryhtiön Jaakko Pöyry Oy:n toimitusjohtajana 1996 – 1999 ja varatoimitusjohtajana 1994 – 1996. Hän on myös Tekla Oyj:n hallituksen jäsen (2006-).

Hallituksen uudeksi jäseneksi ehdotettu diplomi-insinööri Risto Hautamäki, s. 1945, on toiminut Metso Paperin toimitusjohtajana 2005 – 2007 ja ollut Metso Oyj:n hallituksen ja palkitsemisvaliokunnan jäsen vuosina 2004 – 2005. Aiemmin hän on toiminut Tamfelt Oyj:n toimitusjohtajana 1995 – 2005 ja Valmet
Paperikoneet Oy:n toimitusjohtajana 1990 – 1994.

Edellä mainitut ehdotukset sisällytetään myöhemmin julkistettavaan yhtiökokouskutsuun.