Koskisen and Veisto Groups to co-operate

Sep 24, 2012. /Lesprom Network/. Koskisen Oy and Veisto Oy have agreed that Veisto Oy will cease their sawn timber business and lease the entire sawing capacity of their Kissakoski mill, located in Hirvensalmi, to Koskisen Oy. The lease contract will start on January 1, 2013 and will continue until further notice, as the company said in the press release received by Lesprom Network. Under the arrangement Koskisen Oy will be resposible for rawmaterial deliveries to the mill and sales of the final products, whilst the resposibilities of Veisto will cover the whole production chain at the Kissakoski mill. Veisto will continue as owner of the Kissakoski mill and as employer of the current employees. The production volume at Kissakoski mill is expected to remain at least at it’s current level. The arrangement also has no personnel effects in Koskisen Oy. Through this arrangement Koskisen sawn timber sales will increase by around 30,000 cubic metres and log procurement by around 75,000 cubic metres. Despite the poor market situation in the sawn timber business, Koskisen Oy seeks with this arrangement to increase the group turnover and profitability. The Sawn timber business itself at Kissakoski has positive profitability expectations, but the goal is also to find synergies, product portfolio expansion, balance the wood procurement, increase efficiency at Järvelä sawmill and optimise the side product flows.