STOCK EXCHANGE RELEASE 12 Aug 1999
JAAKKO PÖYRY GROUP EXPANDS IN SOUTH AMERICA
Jaakko Pöyry Group Oyj and the other owners of Jaakko Pöyry Engenharia Ltda, an engineering company in Brazil, have reached a preliminary agreement whereby the present business activities will be divided between the owners. Jaakko Pöyry Group will concentrate on forest industry and Jaakko Pöyry Engenharia will direct its business activities into other fields. After the division, Jaakko Pöyry Group has no share holding in Jaakko Pöyry Engenharia Ltda. This division of activities has no impact on Jaakko Pöyry Group's 1999 result.
A new company owned by Jaakko Pöyry Group, Jaakko Pöyry Celulose e Papel Technologia Ltda, will be established in Sao Paulo, Brazil. It will have some 50 employees and be responsible for the forest industry business in Brazil.
As part of the agreement, Jaakko Pöyry Group acquires 100 % share holding in Jaakko Pöyry Chilena Ltda, which is active in the forest industry business and has some 30 employees in Santiago and Concepción in Chile.
Both Jaakko Pöyry Celulose e Papel Technologia Ltda and Jaakko Pöyry Chilena Ltda will belong to the Forest Industry business group and will be integrated in its global office network. This enables full co-operation with other companies within the business group and ensures availability of the latest know-how and technology to the clients. Also the co-operation and cross-utilisation of resources with Jaakko Pöyry Engenharia Ltda will continue.
The Jaakko Pöyry Group has a long history in South American forest industry. It has been responsible for several major assignments and projects for leading pulp and paper companies such as Aracruz, Klabin, Cenibra, Champion, Bahia Sul, Votorantim, CMPC, ARAUCO, etc.
In connection with the division of Jaakko Pöyry Engenharia's business activities, Jaakko Pöyry Group has increased its share holding in JP Argentina S.A. to 60 %. JP Argentina S.A. has some 50 employees and is active mainly in infrastructure related projects.
The final agreements are subject to approval by relevant authorities. These approvals are expected to be in place by the end of September, 1999.
JAAKKO PÖYRY GROUP OYJ
For further information please contact:
Mr. Erkki Pehu-Lehtonen, President and CEO Jaakko Pöyry Group Oyj
Tel. +358 9 8947 2999, +358 400 468 084
Stockholm Stock Exchange