STOCK EXCHANGE RELEASE 8 Feb 2011
Pöyry awarded BRL 325 million (about EUR 144 million) assignment in a paperboard project in Brazil
PÖYRY PLC Company Announcement 8 February 2011 at 8.00 a.m.
Pöyry's Industry business group has been awarded an assignment by MWV Rigesa Ltda., Brazil for the expansion of its paperboard mill in Três Barras, Santa Catarina State, Brazil. The assignment consists of contracts for EPC Open Book of the Balance of Plant (BOP) together with the associated EPCM services, and Project Management services for the overall project management support to the client. The total value of Pöyry's contracts is about BRL 325 million (about EUR 144 million) of which a majority consists of the EPC Open Book BOP contract. The contracts have been signed on 7 February 2011. A notice to proceed for the EPC Open Book contract is expected to be received during the first quarter of 2011 after which the value will be booked into the order stock. The new machine is expected to be completed in mid-2012. Due to the nature of the contracts, profit recognition will occur towards the latter part of the project.
MWV Rigesa is expanding its operations at the Três Barras mill including the installation of a new, state-of-the-art paperboard machine that will double the capacity of the existing mill. The new machine will produce 300,000 metric tons per year of kraft linerboard for use in the company's packaging converting operations throughout Brazil. A water management system will enable water efficiency improvements, reducing water consumption per ton of paper produced by 65%. The Rigesa expansion project will support MWV's rapidly growing, integrated corrugated packaging business in Brazil.
"Based on our experience accumulated over many decades in this region, our Brazilian operations have participated in the development of the project throughout all phases from conceptual to basic engineering. We are very pleased to jointly implement this project within a differentiated concept, which further strengthens our relationship with MWV Rigesa. This whole project confirms Pöyry's position as market leader in South America," says Martin Kuzaj, Executive Vice President and President of the Industry business group, Pöyry.
"This expansion project is a testament to MWV's growth strategy in Brazil, and underscores our commitment to lead this growing market with cost-effective and innovative corrugated packaging solutions", said Bob Beckler, President, MWV Rigesa. "It is an investment that creates tremendous value for our customers, consumers, and shareholders of MWV. We have a well designed plan, and look forward to the partnership with Poyry as we execute the project."
"The complexity and opportunities to improve sustainability of the MWV Rigesa expansion project are most exiting for Pöyry. Through close co-operation in our EPC Open Book partnership model MWV Rigesa and Pöyry can jointly realise sustainability improvement objectives. This project is well aligned with Pöyry's vision of Engineering Balanced Sustainability(TM) in large complex projects," says Richard Pinnock, Executive Vice President, Group Strategic Growth, Pöyry.
This assignment reinforces Pöyry's global leadership position in the pulp and paper sector for consulting engineering services.
Additional information by:
Richard Pinnock, Executive Vice President, Group Strategic Growth, Switzerland
Tel. +41 76 356 2410
Martin Kuzaj, President, Industry Business Group, Finland
Tel. +358 10 33 21179
Sanna Päiväniemi, Director, Investor Relations
tel. +358 10 33 23002
Pöyry is a global consulting and engineering company dedicated to balanced sustainability and responsible business. With quality and integrity at our core, we deliver best-in-class management consulting, total solutions, and design and supervision. Our in-depth expertise extends to the fields of energy, industry, urban & mobility and water & environment. Pöyry has 7000 experts and the local office network in about 50 countries. Pöyry's net sales in 2009 were EUR 674 million and the company's shares are quoted on NASDAQ OMX Helsinki. (Pöyry PLC: POY1V).
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