Thursday, January 4, 2024
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Neova Oy’s subsidiary Vapo Terra Oy and Versowood Oy have agreed on a business deal whereby Vapo Terra decides to sell the Tureng pellet factory to Versowood Oy. The transaction was scheduled to be completed on January 1, 2024. As the result of this transaction, The eight employees of the Tureng pellet factory are to join the new new owner as old employees. The parties have agreed that the purchase price will not be made public.
The parties have also tentatively negotiated a deal in which Vapo Terra would sell the Vilppula pellet mill’s production machinery to Versowood in 2025, should the mill’s raw material and drying energy run out.
According to Vapo Terra’s business strategy, it will focus even more in the future on increasing the value of the land it owns, e.g. by licensing solar and wind power parks. “With the deal now done, capital will be freed up for this activity ,” says Pasi Koivisto, director of Vapo Terra’s fuel business and real estate development.
Highlighting the benefits of this deal, Versowood Oy CEO Ville Kopra said, “With today’s business deal, we are strengthening our pellet business. The Tureng mill has long been an important customer of Riihimäki sawmill in terms of sawdust deliveries, and with the deal, our pellet production will increase to almost 100,000 tons. We see growth potential in bioenergy and especially pellets for the company.”
Versowood Group is one of the well known privately owned processing group. It is an international pioneer in the industry that procures approximately 4 million cubic meters of Finnish spruce and pine to process them into approximately 1,5 million cubic meters of sawn timber. With better acquisition and expansion the company is spreading its current reach to attain better growth and development.
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