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Powerflute in brief

Powerflute Oyj (the "Company"), a holding company which, through its wholly-owned subsidiary Savon Sellu Oy (which together comprise the "Group"), operates a semi-chemical paper mill near Kuopio, Finland. It manufactures a specialised, high-quality grade of fluting called Nordic semi-chem fluting (sold by the Group as "Powerflute™").

The fluting is made primarily from birch wood sourced from Finland and Russia and is used mainly to manufacture boxes for fresh and frozen produce. Other applications include packaging of electrical goods and agricultural products and heavy duty packaging for automotive products.

The Group's key customers comprise corrugated board and packaging manufacturers including leading manufacturers in the sector. The majority of the Group's sales are in Western and Southern Europe with Spain, Italy, Turkey and Greece accounting for approximately 50 per cent of the total sales in 2006. Asia also represents a fairly significant market for the Group and in 2006, the Group commenced sales to the US market.