Metsä Wood divests Estonian business to Combimill
11 June 2014Metsäliitto, parent company of Metsä Group, has divested its Estonian subsidiary Metsä Wood Eesti to Combimill Ou.
The two parties have also agreed on commercial co-operation in raw material procurement as well as co-product and sawn timber sales.
Metsä Wood says the transaction wll not have a signficant impact on its financial results.
"The arrangement is in line with Metsä Wood's strategy of industrial efficiency and investment in resources in the continuous development of the competitiveness and productivity of Metsä Wood's core business," said executive vice-president Esa Kaikkonen.
Metsä Wood Eesti's sawmill in Reopalu, central Estonia, has an annual whitewood capacity of 75,000m3. It has a turnover of around €16m.
Combimill has a redwood production facility in Koidama.
The transaction, which is subject to approval by the Estonian Competition Authority, is expected to be completed by the end of the third quarter.
