Market environment

Raute’s customers are the producers of veneer, plywood and LVL (Laminated Veneer Lumber). Their products are typically used in construction, housing-related consumption, international trade and transportation. 

Steady base to build on

Raute is operating in a new business environment, leveraging the good market demand especially in EMEA, and North and Latin America. In 2022, Raute – as many other global companies – witnessed the end of an era when operating in Russia needed to be re-evaluated. At the same time, wood construction and veneer-based products continued to grow in popularity globally. Investment activity among Raute’s customers continued steady. The company’s order book remained on a reasonable level, and demand for technology and maintenance services was good.

Market situation in the global economy remained uncertain due to the Russian invasion, difficulties in component availability, and higher inflation. Still, Raute succeeded in increasing the sales of mid-sized single production line modernizations and technology services during the year. This followed the customer trend of improving the performance of existing production solutions.

In traditional markets, there was active search for new solutions to improve profitability and resourceefficiency. EMEA demand was good, and customers continued their efforts to increase capacity to fill the gap left by declined imports. North America remained active in regard to the overall Raute offering, and demand for new process automation, modernization, and services was especially good. 

In emerging markets, the continued fast urbanization increased the demand for sustainable solutions made of wood. Markets in Latin America developed positively thanks to good raw material availability. Activity in Asian markets and China continued to recover from the extended downturn caused by COVID-19.

Russia’s attack on Ukraine and the resulting sanctions have had a significant impact on Raute’s business operations, as Raute had ongoing projects for several different Russian customers. In March 2022, Raute announced it had stopped entering into new contracts with Russian parties and started a controlled wind-down of Russian operations which continues into 2023 with remaining final deliveries. In the end of 2022, the remaining order book for Russia was 4 MEUR.

Plywood, LVL and veneer industries

Plywood and LVL industry’s market close to EUR 50 billion a year.

Investments in veneer, plywood and LVL production technology under normal market conditions close to EUR 1 billion a year.