RAUTAKESKO AND PUUKESKUS SIGNED A CO-OPERATION AGREEMENT IN TIMBER TRADE

Rautakesko Ltd and Puukeskus Oy will join purchasing operations in their timber trade and have signed a co-operation agreement concerning timber trade. In the future, the 27 warehouse outlets of Puukeskus will also serve as Rautakesko’s warehouses. To K-rauta and Rautia chains and to Rautakesko’s Industrial and Constructor Sales the agreement means more competitive prices, a wider selection of merchandise and faster deliveries.

From the beginning of the year 2003, the companies will co-operate to produce Rautakesko’s wholesale operations in the timber trade. Puukeskus will produce the purchasing and warehousing services needed by Rautakesko for timber and wood-based boards. The companies will also develop a joint electronic order and invoicing system. Four employees of Rautakesko will be transferred to Puukeskus to strengthen the efficiency of co-operation.

Puukeskus will offer Rautakesko the expertise and warehousing flexibility of the service producer specialised in wood products. Rautakesko will continue to develop its chain concepts in the timber trade, too, and will be responsible for timber selection development, chain marketing, logistics guidance, and industrial and constructor sales. The main sectors of Puukeskus in this co-operation with Rautakesko will be wholesale warehousing and purchasing agreements with the sawmill and board industries. Co-operation with Rautakesko will also improve the operational efficiency of Puukeskus by increasing the stock turnover rate and purchasing volumes.

Rautakesko Ltd, a subsidiary of Kesko Corporation, is responsible for the hardware and builders’ supplies trade in Finland, Sweden and the Baltic countries. In 2001, the combined net sales of Rautakesko’s K-rauta and Rautia chains and the Industrial and Constructor Sales totalled about EUR 1.2 billion.

Puukeskus Oy is the biggest building material merchant for wood-based materials in Finland and part of the UPM-Kymmene Wood Products Industry. In 2001, Puukeskus had net sales of about EUR 260 million. Its customers consist of the industry using wood and the construction industry.

At present, co-operation covers Finland only and the agreement is subject to the approval by the competition authorities.

Further information:
President Matti Halmesmäki, Rautakesko Ltd, tel. +358 1053 20200
Vice President Jari Lind, Rautakesko Ltd, tel. +358 1053 20402,  +358 500 631 519
Category Manager Kimmo Halinen, Rautakesko Ltd, tel. +358 1053 20260, +358 50 5531 300
Managing Director Lars Karlsson, Puukeskus Oy, tel. +358 204 165 017, +358 400 450 657