29 Apr 2010 07:30
29th April 2010
POWERFLUTE OYJ
AGM STATEMENT
Powerflute Oyj (the "Group" or "Powerflute"), the packaging group with established positions in Nordic semi-chemical fluting and coated woodfree papers, released the following statement on current trading ahead of today's Annual General Meeting of shareholders to be held in Kuopio, Finland. Powerflute is listed on the AIM market of the London Stock Exchange (Ticker: POWR) and on the First North list, the alternative market of the OMX Nordic Exchange Stockholm AB (Ticker POW1V)
Powerflute Chairman, Dermot Smurfit commented:
"During the first quarter, trading conditions have continued to be very tough and the Group's results were impacted by further substantial increases in pulp costs following the temporary closure of mills in the Chilean earthquake zone and by the closure of Finnish ports in March due to industrial action by port workers.
Despite these factors, both of our businesses experienced healthy demand and achieved price increases during the quarter. The price recovery in Nordic semi-chemical fluting and coated wood free markets is expected to continue and should lead to improved performance in the second half of the year. Accordingly, we expect that performance for the full year will be in line with current market expectations."
- Ends-
Contacts
For additional information please contact:
| Powerflute OYJ Dermot Smurfit (Chairman) Marco Casiraghi (Chief Executive) David Walton (Chief Financial Officer)
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c/o Billy Clegg, Financial Dynamics +44 (0)20 7269 7157 |
| Collins Stewart Europe Ltd: Piers Coombs Mark Dickenson
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+44 (0)20 7523 8350 |
| E.Öhman J:or Fondkommission AB: Ms Arja Väyrynen
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+358 9 8866 6029 |
| Financial Dynamics: Billy Clegg
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+44 (0)20 7831 3113 |
| K Capital Source Mark Kenny Jonathan Neilan |
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+353 (1) 663 3686 |
About Powerflute
Powerflute Oyj ("the Company" or "Powerflute") is a packaging group with established positions in Nordic semi-chemical fluting and coated woodfree papers.
Through its subsidiary Savon Sellu Oy, the Group operates a paper mill in Kuopio, Finland which produces a specialised form of semi-chemical fluting made from birchwood sourced principally in Finland and Russia. Corrugated boxes manufactured using Nordic semi-chemical fluting demonstrate exceptional strength and moisture resistance and are extensively used for transportation of fruit and vegetables, high-value industrial goods such as electrical appliances and automotive components. The Kuopio mill has the capacity to produce up to 300,000 tonnes per annum and is one of three suppliers of Nordic semi-chemical fluting in Europe.
Through its recently acquired subsidiary Papierfabrik Scheufelen, the Group operates a paper mill in Lenningen, Germany which produces a range of coated woodfree papers from mixed hardwood and softwood pulps. Coated woodfree papers are used in the production of printed promotional material such as brochures, leaflets and other point of sale materials for producers and distributors of premium branded goods. The Lenningen mill has the capacity to produce up to 300,000 tonnes per annum and supplies the majority of its products into the European market where total demand has historically been in excess of 7.7 million tonnes per annum.