Jan 04, 2011. /Lesprom Network/. The contracts between Raute Corporation and Muling Kemian Wood Products Co., Ltd., which were announced on November 2010, have taken effect. The machinery and equipment worth about Euro 15 million will be delivered to an LVL plant to be built in Muling, China during summer 2011. The plant will be commissioned in the beginning of 2012. In addition to Raute’s technological know-how and reference deliveries, the Shanghai unit’s delivery capability as well as local service and after-care ability in China were factors in closing the deal, as the company said in a press release received by Lesprom Network. The plant to be built will be the first in China to produce structural LVL that meets international quality specifications. The Chinese LVL markets are forecasted to grow strongly due to the increasing awareness of earthquake resistance needs related to both infrastructure and housing construction. Also, the environmental aspects of LVL increase its value compared to steel construction of industrial premises. The machinery and equipment will be manufactured at Raute’s main production unit in Nastola, Finland, and at the Shanghai unit. The new order is the largest machinery and equipment delivery from Raute’s production unit in Shanghai to date, and the first project with complete assemblies sold directly by Raute’s local subsidiary Raute (Shanghai) Machinery Co., Ltd. The new contract will not have an impact on Raute’s net sales and financial performance forecasts for 2010. Net sales for this year will increase and the operating profit will be positive. Muling Kemian Wood Products Co., Ltd. is a subsidiary of the Chinese public company Dalian Kemian Wood Products Co., Ltd., which is a new operator in the LVL industry. The machinery and equipment ordered by the company will be delivered to a new LVL production plant in Muling. The machinery and equipment to be delivered by Raute will have an annual rated capacity of approximately 60,000 cubic metres LVL. Raute is a technology company serving the wood products industry worldwide. Its most important customers are the plywood and LVL industries.