29th Jun 2007 07:00
Powerflute Oyj29 June 2007 29 June 2007 POWERFLUTE OYJ PRE-CLOSE PERIOD TRADING UPDATE Powerflute Oyj (the "Company" or "Powerflute"), which operates a paper mill inFinland, Savon Sellu, manufacturing high quality nordic semi-chemical fluting,is pleased to give the following update prior to entering into the close periodahead of the Company's maiden interim results for the six months to 30 June2007, which are expected to be announced in the first week of September 2007. Demand for nordic semi-chemical fluting is strong, driven by good fundamentalsin the corrugated sector and continuing growth in international trade,especially in fresh fruit and vegetables. At the same time, as presaged in the Company's Admission Document dated 4 May2007, there is upward pressure on birchwood input pricing caused by shortagesdue to a short winter and local market uncertainty surrounding the introductionof the expected Russian export tax. The Company continues to have the benefit ofits birchwood supply contract with Metsaliitto. As a consequence of strong demand and upward pressure on costs, Powerflute hasthis week informed customers of its intention to implement price increases onall new orders from 1 July 2007 of up to €50/tonne. Overall, the trading environment remains good going into the second half,consistent with expectations at the time of the IPO. The company was admitted to AIM on 11 May 2007 and takes pleasure in welcomingits new shareholders. Ends Enquiries: Dermot SmurfitChairmanTel No:C/o Billy CleggFinancial Dynamics0044 20 7831 3113 Don CoatesChief Executive OfficerTel No:C/o Billy CleggFinancial Dynamics0044 20 7831 3113 Nick EllisCollins StewartTel No: 0044 207 523 8300 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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