Raute's technology has a strong position among hardwood veneer and plywood industries in Europe, Russia and South East Asia, and it is competitive also for the hardwood industry in North America. The agency agreement between Raute and Veneer Services will strengthen Raute's presence in the North American market where Raute's focus has been more on serving the softwood plywood and LVL industries.
Raute's own operations concentrate on serving softwood veneer and plywood producers as well as LVL industry. In other market areas, in particular Europe, Russia and South East Asia, Raute has a strong position among the hardwood industry as well, but in North America Raute has not focused on that customer base sufficiently for historical reasons. Raute believes that its technology will be competitive for North American customers as well.
The hardwood veneer and plywood industry is of significant size in North America. The combined revenue of the industry is over $2.3 billion and capital investment is recovering after an extended period of stagnation. The current improvement in the housing market should contribute to steady growth and healthy development in the market for hardwood products. Raute and Veneer Services see large potential in renewing the technology and equipment base of the industry.
Veneer Services LLC is an Indianapolis, Indiana based, privately held company. Since 2000, Veneer Services has provided machine solutions to the hardwood veneer and panel industries. Veneer Services is well known in the hardwood industry and has a reputation for innovative solutions to the specific challenges of this sector.
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 and LVL (Laminated Veneer Lumber).