HONKARAKENNE INVESTS IN DEVELOPMENT OF THE KARSTULA FACTORY

HONKARAKENNE OYJ Inside information    20 May 2019 AT 9:00 a.m.

HONKARAKENNE INVESTS IN DEVELOPMENT OF THE KARSTULA FACTORY

Honkarakenne will invest EUR 5.2 million in the development of the Karstula factory production line upgrades. The investment is part of the company’s new strategy and a continuation to previously decided and initiated production development projects. In total, the company will invest EUR 7.3 million between the years 2018 - 2020 in upgrades to its Karstula factory.

The investments will improve the efficiency of the factory’s production processes and increase the company’s capacity, particularly in urban and project construction. The new production line is estimated to be in efficient production use in summer 2020. By upgrading the production line, the company aims to achieve substantial savings in the production process. The savings are comprised partially of the improved efficiency of the production process and the utilisation of raw materials, and partially of reduced labour requirements. The effects of the project on personnel will be determined in detail once the new production line is deployed.

Marko Saarelainen, President and CEO of Honkarakenne comments on the production line upgrade and latest investment as follows: “We have systematically developed our production processes throughout our company’s existence, and the current investments are a continuation of this history. With the renewed production line, we will be able to manufacture better solid wood buildings in our own factory in Karstula. Our houses will continue to be constructed in Finland, and thanks to continuous development of production, we will continue to be able to offer our customers safe residential solutions using the latest technology.”

HONKARAKENNE OYJ

Marko Saarelainen

President and CEO

For further information, please contact:

Marko Saarelainen, President and CEO, tel. +358 (0)40 542 0254, or 

Jari Fröberg, Vice President, Production, tel. +358 (0)40 632 7495,

DISTRIBUTION

NASDAQ OMX Helsinki Ltd

Key media

Financial Supervisory Authority

Under its Honka® brand, Honkarakenne manufactures high-quality, healthy and ecological detached houses, holiday homes and public buildings using Finnish solid wood. The company has delivered 85,000 buildings to more than 50 countries. The house packages are manufactured in Finland; the company’s own factory is located in Karstula. In 2018, the Honkarakenne Group had net sales of MEUR 48.9, of which exports accounted for 37%.