Acquisition of Savon Sellu
Powerflute’s first acquisition was Savon Sellu, a manufacturer of semi-chemical fluting located in Kuopio, Finland which was loss-making when acquired from M-real in 2005.
Fluting is used in the construction of corrugated boxes to provide strength and structural rigidity. Most fluting is manufactured from recycled fibre and has only limited resistance to moisture. In contrast, the SC-fluting produced by Savon Sellu and sold and distributed under the “Powerflute” brand is made exclusively from birch and possesses both superior strength and natural moisture resistance. This makes it ideal for long distance transportation of fruit and vegetables in refrigerated containers, or for the protection of high-value industrial goods such as dry chemicals, electrical appliances and automotive components.
The Kuopio mill is one of only three producers of premium grade SC-fluting and exports its products on a worldwide basis. Under Powerflute ownership, the mill has increased its capacity considerably and is currently highly profitable.