Schauman Wood, a company of UPM-Kymmene Wood Products Industry, strengthens its position in Russia by acquiring the majority of shares of ZAO Chudovo-RWS, a birch plywood mill operating in the Novgorod region. By an agreement signed today, Raute Oyj has sold Schauman Wood its share of this company. The total value of the sale amounts to 3.9 million euro. As from 1 January, 2002 ZAO Chudovo-RWS will operate as a Schauman Wood subsidiary with a 60 per cent share of ownership.
After the ownership arrangement the operations of ZAO Chudovo-RWS will be developed by expanding the present production facilities by a new production line for high quality furniture veneer valued at 13 million euro. This investment will strengthen UPM-Kymmene's position as the leading supplier in this field.
ZAO Chudovo-RWS is a Finnish-Russian joint-venture company founded in 1988 and operating in Russia. The shareholders have been Schauman Wood Oy, Raute Oyj and ZAO Novgorodlesprom. The annual turnover of Chudovo-RWS is nearly 30 million euro.
For further information:Mr Arto Juvonen, Managing Director, Schauman Wood, tel. +358 204 15 6408
UPM-Kymmene CorporationWood Products Industry/Communications27 December, 2001