Published Thursday, 29.9.2011

The Board of Directors of Puhos Board Oy, Kitee, Finland, have decided to file for bankruptcy.

The price level of wood based by-products used as rawmaterial have remained on a fairly high level and it is expected, that the use of wood as souce for energy production during the upcoming winter will further increase both price of wood based rawmaterials used by the wood based panels industry as well as logistic costs. The current price level of raw-material hinders the possibility to produce at profit.

The demand for wood based panels has remained slow, and no major improvement of the situation is expected in the near future. Construction activity in Finland and neighbouring countries is weak. A tough competitive situation prevails in the industry and production capacity has been discontinued both in nearby markets and Europe.

Puhos Board Oy has been in restructuring proceedings since May 2009. Regardless of many actions aimed at improving profitability the business has failed to turn-around.

The turnover of the company is approximately 30 MEUR and it employs around 86 persons.

Additional information:

Paul-Erik Toivo, Managing Director, Puhos Board Oy, mob: +358 40 821 3737

The Board of Directors