April 3, 2007
City24 to Russia and Mascus to Denmark and Czech Republic
Pöyry's Forest Industry business group has expanded its business in Russia by acquiring 70 per cent of the shares of ZAO Giprobum Engineering, based in St. Petersburg. The company's net sales are about EUR 5 million and it has a staff of 260. The transaction includes an option to acquire the remaining 30 per cent of the shares during the first half of 2009. The closure of the transaction is subject to approval by the Russian competition authorities.
Giprobum Engineering has a leading position in its own business sector in Russia. Prior to its privatisation in 1990, Giprobum was for decades the leading government design institute developing the Russian forest industry. The company has designed and carried out most of the projects implemented in the Russian forest industry. In addition, the company has also developed and designed projects in the energy and infrastructure sectors. The services of Giprobum Engineering include investment studies, services related to permitting and agreements with authorities, various sectors of plant engineering, and construction management services. Giprobum Engineering has a wide clientele both in pulp and paper and mechanical wood industries in Russia, Ukraine, Belarus and several Eastern European countries.
The special know-how and many years' experience of Pöyry and Giprobum will provide an excellent basis for Pöyry's business in the Russian forest industry. Apart from the forest industry, the acquisition will also strengthen Pöyry's foothold in the growing Russian energy and chemical industry. In future Pöyry can offer solid local expertise and comprehensive services to companies planning or implementing investments in Russia.
"Several leading forest industry companies are investigating the possibilities of investing in Russia," comments Jukka Nyrölä, President of the Forest Industry Business Group. "Complementing each other's know-how, Pöyry and Giprobum can offer clients better and more comprehensive services in developing and implementing their business and investments in Russia. Giprobum's good reputation, wide client base and numerous references, together with Pöyry's know-how, advanced tools and international experience, form a good base for business growth."
Pöyry is a global consulting and engineering firm focusing on the energy, forest industry and infrastructure & environment sectors. Pöyry's net sales in 2006 amounted to about EUR 620 million and it employs 6400 experts.
Investor Relations Manager
Additional information by:
Jukka Nyrölä, President, Forest Industry Business Group, Pöyry Plc
tel. +358 10 33 22010
Tapio Aalto, President, Forest Industry European Offices, Finland
tel. +358 10 33 234301
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