27/10/2008 Metsäliitto has decided to close the Soinlahti sawmill in Iisalmi. In the statutory labour negotiations started at the beginning of September, it was discussed whether there were any alternatives to continue the operation of the sawmill. Negotiations were concluded on 22 October. As the European sawmill industry's operating environment has become more and more challenging, Metsäliitto has decided to close the sawmill that has been making a loss for a long time. “New sawn timber capacity built in Europe, the high level of costs in Finland and drastically increased logistics costs make us redefine which products and from which sawmills we can sell competitively to our customers in our main markets,” says Ole Salvén, Group Executive Vice President of Metsäliitto Wood Products. “We have already adjusted our sawn timber production to the reduction in demand for more than a year. During the autumn, the sawmill industry's market environment has become even more challenging as the weakened economy has slowed down building and construction,” says Salvén. The Soinlahti sawmill will be closed at the turn of the year 2008-2009. The number of personnel at the sawmill is 66. Metsäliitto will do its best to help find a new job for those who will lose their job either within the Metsäliitto Group or in other companies. In connection with the statutory labour negotiations, a support package has been agreed on which supports employment and secures financial position of personnel. The production capacity of spruce sawn timber at the Soinlahti sawmill in Iisalmi amounts to 150,000 cubic metres. Most of the production is delivered to the domestic market and to Metsäliitto Wood Products Industry's own upgrading. The sawmill has been running since 1952. Further information: Ole Salvén, Group Executive Vice President, Metsäliitto Wood Products Industry, Finnforest, tel. +358 10 469 4870 Timo Pekkola, Senior Vice President, Solid Wood Business Line, tel. +358 10 469 4743 Johanna Kankkunen, Director, Marketing and Communications, Metsäliitto Wood Products Industry, Finnforest, tel. +358 50 350 4005