Raute received huge orders worth EUR 58 in Russia
Published on :Thursday, October 3, 2019
Raute receives huge orders from Segezha group in Russia. Raute’s meteoric rise is significant with an order receive of approximately EUR 58 million from Segezha Group. The scope of orders includes all machinery and equipment for the production process of an entire plywood mill. The machinery and equipment will be delivered to a green field plywood mill to be set up in Galich, Kostroma region by Segezha Group. The annual capacity of the new mill will be approximately 125 000 cubic meters. The ordered machinery and equipment will be delivered during the year 2020 and production in the plywood mill will start in summer 2021. The equipment will be engineered and produced in Raute’s units in Nastola, Shanghai and Kajaani, and also in the company’s partnership network. This order is the biggest single order ever in Raute’s history.
Segezha Group, a Russian forest industry holding company, has operations, in addition to Russia, in eleven countries in Europe. Raute has previously, in 2006 and 2017, delivered two production processes for the manufacture of birch plywood to Vyatskiy Fanernyi Kombinat in Kirov region. Vyatskiy Fanernyi Kombinat is part of Segezha Group.
Raute’s experience in resource-efficient technology, delivery capability and the company’s local presence and service network in the Russian market had an influence when selecting the supplier. The scope of the order serves as a proof of Raute’s leading know how on the plywood production process. The orders now received have no impact on Raute’s outlook for 2019. Raute’s net sales for 2019 are expected to decrease and operating profit is expected to weaken from the comparison period.
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