Koskisen Group14.01.2013

Koskisen leases Kissakoski sawmill operations

Kissakoski logyard

Kissakoski logyard

Koskisen Oy leased the sawmilling business of the Kissakoski mill located in Hirvensalmi, eastern Finland, beginning from the start of 2013. The plant processes annually around 30,000 cubic metres of spruce and pine and has already lived up to expectations.

The everyday work of the 14-employee mill owned by Veisto was barely affected by the lease. According to Jani Nypelö, Production Manager of the Kissakoski sawmill, production has been busy during the spring, with work taking place in one and a half shifts, on average 10 hours a day, for the past few weeks.

“The only obvious change between Koskisen and Veisto’s earlier operations is the regular processing of two different tree species. For Veisto we mainly worked with pine and now spruce is also a regular material. Products are manufactured to a great extent based on orders from customers, which minimises the need for intermediate storage,” he says.

The products are largely made from small logs, and extensive possibilities exist for tailoring the thicknesses and widths according to the customer’s needs, asserts Nypelö.

“On average, we send three daily truck loads of finished sawn timber to customers. In addition to domestic deliveries, we also ship to Japan, North Africa, Poland, Estonia, Israel, Germany and the Benelux countries. The biggest customer segment is the joinery industry.”

Lease until further notice

Veisto Oy is a company owned by the Rautio family from nearby Mäntyharju. The company’s history harks back to 1964 when the Rautio brothers first developed a square timber hewing machine for their own use. Currently, the main products are the timber processing lines sold under the brand HewSaw. 70% of the production is exported outside Finland.

The builder of saw mill machinery with a rich heritage wanted to focus on its key business and lease the sawmilling operations to a familiar partner. The same concept was implemented in Eskola, where its sawmilling business was leased to MetsäWood.

The Koskisen Oy’s objective in leasing the Kissakoski sawmill is a significant increase in turnover. Other targets, in addition to profitable sawmilling, were synergy effects within the Group in areas such as extending the product range by including timber sawn from small logs, more balanced log sourcing, more efficient operations at the Järvelä sawmill and optimal utilisation of by-products.

According to Tommi Sneck, head of Koskisen’s Timber Industry, the lease contract between Veisto and Koskisen will remain in force until further notice.

“This past spring has proved that the lease of the Kissakoski sawmill was a profitable investment. The operations will be developed even further during the summer downtime by improving loading arrangements in the log yard and by building a wet storage for green timber. This will enable us to also produce that type of timber at Kissakoski,” says Tommi Sneck.