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AS Viisnurk acquired a softboard factory in Püssi

Furniture and softboard manufacturer AS Viisnurk acquired a softboard factory in Püssi for 4 million euros at the auction.

AS Viisnurk, a manufacturer of furniture and softboard acquired a softboard factory in Püssi for 4 million euros at the auction today. The factory in Püssi was built in 2009 and stopped working in May 2010. The factory was built by MKT Holding OÜ and the total cost of the construction and equipment was more than 14.7 million euros (230 million Estonian kroons). The bankruptcy of MKT Holding OÜ was declared on 25 October 2010. The factory was at auction first on 27 December 2010 at a price of 200 million kroons (12.8 million euros).

Chairman of the Management Board of AS Viisnurk Andres Kivistik says that purchase of Püssi softboard factory is a strategic investment for the company. „We have a similar factory in Pärnu working at full capacity 24/7, but we are not able to satisfy the entire potential demand. As there is demand for our products, we plan to achieve the full capacity of Püssi factory by late autumn this year. We estimate that it will be possible to produce up to 70,000 m3 of softboard a year in Püssi softboard factory and the turnover of the factory could thus be around 7-8 million euros. For AS Viisnurk it means a significant increase in turnover and helps to broaden our sales geography,“ Kivistik said. „With the support of new production capacity we are able to increase sales to our customers in Asia and Western Europe for whom we could not produce enough in Pärnu factory as Scandinavian customers were prioritized. Having two production units will also allow us to divide the product portfolio so that we can achieve higher efficiency in our Pärnu factory, taking its annual output from current 55,000 m3 to 65,000-70,000 m3.”

After the acquisition of the Püssi factory production of natural softboards will be the biggest segment of the Group. Management plans to prepare the new strategy by autumn, to act more strongly on the ecologically friendly building materials market and offer natural and energy efficient solutions.

The turnover of AS Viisnurk in 2010 was 13.9 million euros and net profit 771 thousand euros. The export constituted 83% of the turnover.

Viisnurk AS is engaged in the field of furniture and furnishing goods retail trade and the production of furniture and building materials. The Furniture and Building Materials Divisions are the business units of AS Viisnurk. Furniture store chain SKANO operating in Ukraine and the Baltics and a plant producing original home furniture made of timber belong into the Furniture Division. Private limited company Skano is 100% owned by AS Viisnurk and has subsidiaries in Latvia, Lithuania and Ukraine. SKANO furniture store chain has 13 stores: two in Tallinn, one in Pärnu, Riga, Vilnius and Kaunas, three in Kiev, one in Donetsk and Kharkiv and two in Dnipropetrovs’k.

Softboard factories in Pärnu and Püssi and interior finishing board production line in Pärnu belong into the Building Materials Division. The division manufactures and markets products based on softboards: trademark Isoplaat building boards for insulation and soundproofing, and Isotex interior finishing boards for walls and ceilings. The principal markets of the group are Scandinavia, Russia, Ukraine and the Baltics.

The shares of AS Viisnurk have been listed in the Tallinn Stock Exchange since 5 June 1997.

Andres Kivistik
Chairman of the Management Board
+372 5553 7773

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