Raute receives order of EUR 49.6 million to Uruguay
RAUTE CORPORATION STOCK EXCHANGE RELEASE MARCH 17, 2023 AT 11:05 A.M.
RAUTE RECEIVES ORDER OF EUR 49.6 MILLION TO URUGUAY
Raute Corporation has signed a contract worth EUR 49.6 million with Lumin in Uruguay for the technology delivery of a new plywood mill. This project was earlier referred to in the stock exchange release dated March 9, 2023 (Raute plans directed share issue, rights issue and junior loan to support targeted growth and strengthening of capital structure and proposes combination of share classes). Following the receipt of an advance payment for the project it has become effective as of today.
Lumin will build a green-field plywood mill in Melo, Cerro Largo, Uruguay. The new mill will increase their plywood production capacity from 304 000 m3 to nearly 500 000 m3, making Lumin the second largest plywood producer in South America.
The order for Raute’s technology includes all main production processes to this new eucalyptus plywood mill: a log handling line, a veneer peeling line, two veneer drying lines with grading, three veneer composing lines, two plywood lay-up lines, two plywood pressing lines, panel repairing and sawing lines with extensive service package and long-term on-site management. All lines are of the most modern automated R7-Series technology equipped with analyzers for grading and MillSIGHTS software for data capturing.
“We are very pleased to receive this order, which shows our ability to serve our customers as a complete, one-stop-supplier. Lumin is our long-term customer with multiple technology deliveries from Raute over the years”, says Mika Saariaho, CEO of Raute.
The ordered machinery and equipment will be delivered between February 2024 and June 2025. They will be manufactured at Raute’s production units in Lahti and Kajaani in Finland, and in the company’s partnership network.
This new mill, which will be in full operation in 2026, is part of Lumin's strategy to capitalize on the growing global demand for sustainable timber products for the construction and furniture sectors. On the other hand, they are giving added value in Uruguay, instead of exporting timber, to the tree farms that they have been sustainably managing for more than 15 years in Cerro Largo and Treinta y Tres.
Lumin, employing 780 people, is a leader in forestry and forest products in Uruguay. With more than 25 years of experience it manages 120 000 hectares of timberland and has two plywood mills in Uruguay. Lumin is dedicated to the sustainable production of plywood panels destined for international markets. It is owned by a consortium of long-term investors. www.lumin.com
RAUTE CORPORATION
Mika Saariaho
President and CEO
FURTHER INFORMATION:
Mr. Mika Saariaho, President and CEO, tel. +358 40 1549393
DISTRIBUTION: Nasdaq Helsinki Ltd, main media, www.raute.com
RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood, LVL (Laminated Veneer Lumber) and sawn timber. Its technology offering covers the entire production process for veneer, plywood and LVL and special measurement equipment for sawn timber. As a supplier of mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in Lahti, Finland. The company’s other production plants are located in Kajaani, Finland, the Vancouver area of Canada, Changzhou, China, and in Pullman, WA, USA. Raute’s net sales in 2022 were EUR 158.3 million. The Group’s headcount at the end of 2022 was 778. More information about the company can be found at www.raute.com.