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RAUTE CORPORATION INSIDE INFORMATION October 1, 2019 at 10:00 a.m.

RAUTE RECEIVED ORDERS WORTH APPROXIMATELY EUR 58 MILLION TO RUSSIA

Raute Corporation has received orders worth approximately EUR 58 million from Segezha Group to Russia. 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.

The order now received is the order forecasted in the release published on August 7, 2019 concerning an engineering contract and thus continuation to the said engineering contract.

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.

RAUTE CORPORATION
Tapani Kiiski
President and CEO

FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation, mobile phone +358 400 814 148, after 3 p.m. Finnish time due to time difference

DISTRIBUTION:
NASDAQ OMX 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 the Nastola area of Lahti, Finland. The company’s other production plants are located in Kajaani, Finland, the Vancouver area of Canada, the Shanghai area of China and in Pullman, Washington, USA. Raute’s net sales in 2018 were EUR 181.0 million. The Group’s headcount at the end of 2018 was 772. More information about the company can be found at www.raute.com.