Stora Enso Oyj and the commune of Kittilä have negotiated an agreement for Kittilä municipality to acquire Stora Enso's shareholding in Kittilä Wood Oy. The municipal board has approved the agreement and will submit it to the municipal council for approval. If the municipal council approves acquisition of the shareholding, the agreement will be signed this year.
Stora Enso owns 75 per cent of the shares in the sawmilling company Kittilä Wood Oy, and Kittilän Aluelämpö Oy, in which Kittilä municipality is the main shareholder, owns the other 25 per cent. The sawmill has an annual production capacity of about 30,000 cubic metres, but it ceased production in December 1999. Planing and pressure impregnation continued until last May, when the remainder of the twenty employees were laid off.
Because of its small capacity and location, Kittilä Wood is incompatible with Stora Enso's core sawmilling operations. Kittilä municipality would like an entrepreneur to upgrade the sawmill and increase its efficiency by investing in new machinery and equipment.
For further information:
Jaakko Mikkola, Kittilä Wood Oy, Chairman, Tel. +358 2046 34665
Seppo Maula, Kittilä Municipal Manager, Tel. +358 16 648 437
