Finnish Fibreboard
History

Notable dates

1984

Enso-Gutzeit Oy and A.Ahlström Oy combined their fibreboard interests to form Suomen Kuitulevy Oy (Finnish Fibreboard Ltd ). The Heinola and Karhula mills were transferred from Enso, the Pihlava mill was transferred from Ahlström. Ownership of the Company was 60 % Enso, 40 % Ahlström.
 

1990

Enso sold their panel products interests, consisting of the Heinola and Säynätsalo plywood mills, and their 60 % share in Finnish Fibreboard, to Oy Wilh.Schauman Ab (later to become part of UPM-Kymmene). Being part of Finland's leading manufacturer of plywood and chipboard created some synergies, for example, in the supply of raw materials and power, and marketing. Responsibility for domestic sales, and a large part of the export marketing, was transferred to the Schauman marketing organisation.
 

1991-1997

At the beginning of the decade, recession in the Finnish building industry saw domestic sales decline by more than half. At the same time, exports were very difficult due to the strong Finnish currency (markka) and a market situation of oversupply. This situation made reorganisation necessary to reduce the cost base and improve the balance sheet. Power production, both at Heinola and Pihlava mills, was transferred to local energy companies, and softboard production was transferred from Karhula to the Pihlava mill.
 

1998

In the 1990's, UPM-Kymmene decided to concentrate on core activities and to sell businesses that were not part of this strategy. The chipboard business was sold in 1994. The solution for the fibreboard business was an MBO, with Management buying a 75 % share of the Company. Schauman retained 15%, and Ahlström 10 %.
 

1999 - 2009

Previously, UPM-Kymmene had taken care of all financial and IT matters. After the MBO, responsibility for these functions transferred to Finnish Fibreboard. Co-operation with UPM-Kymmene continued as UPM Forest still supplied raw material to the Heinola mill. The Pihlava mill set up a supply agreement with Biowatti Oy (owned by the Metsaliitto Group).

The Marketing operation was transferred to Finnish Fibreboard in stages. In the UK, responsibility for marketing was transferred from Schauman (UK) Ltd, and Finnish Fibreboard (UK) Ltd was established in 2001.

The ownership structure was simplified in 2002 when Ahlström decided to sell its 10 % shareholding. Management increased its share to 83 %, and Schauman Wood (part of the UPM-Kymmene Group) to 17 %.

In 2003 the most significant event was the decision to improve the Heinola power plant. The work will be carried out by Lahti Energia, who have long term energy supply contracts with Finnish Fibreboard and UPM-Kymmene. This will take place during the summer 2004.

Responsibility for domestic sales was transferred from Schauman Wood (part of the UPM-Kymmene Group) in 2004, with the setting up of a combined sales organisation for Suomen Kuitulevy Oy and Puhos Board Oy products - LEIJONA-WILHELMI LEVYMYYNTI.

2010

In year 2010 Finnish Fibreboard Ltd and Versowood Oy strengthened raw material supply trough ownership arrangements.; 19,5 % of the share stock of Finnish Fibreboard Ltd was acquired by Versowood Group Oy, mainly through direct issue of shares. Due to the same arrangements, 66 % of the shares stuck with the lead of Finnish Fibreboard Ltd and 14,5 % with UPM Kymmene.

2013

As a result of employee co-operation negotiations Finnish Fibreboard Ltd has closed it’s Pihlava Softboard mill.  At the same time Finnish Fibreboard Ltd has separated their hardboard and softboard sales organisations. Sales of Finnwind and softboards will continue through Suomen Tuulileijona Oy, a wholly owned Finnish Fibreboard Ltd daughter company. Finnish Fibreboard Ltd will continue with hardboard sales.