Ruukki's and EPV Energy Ltd's joint venture company to buy Ruukki's power plant and invest around EUR 121 million in modernisation
Rautaruukki (Ruukki) and EPV Energy Ltd (EPV) have established a joint venture company Raahen Voima Oy, which will buy Ruukki's existing power plant business and invest around EUR 121 million in modernising the plant. Ruukki owns 75% of the new company and EPV 25%.
Raahen Voima Oy is to buy Ruukki's existing power plant at the Raahe Works in Finland for around EUR 16 million and will invest around EUR 121 million in modernising it. When it comes on stream, the modernised power plant will replace the technically obsolete equipment in the old power station and at the same time improve the efficiency and environmental soundness of the plant. The intention is to start up the modernised power plant in 2016.
The joint venture will pay for the power plant investment largely through debt financing. Taking into account the selling price of the existing power plant, Ruukki's net investment will be some EUR 10 million.
A total of 34 Raahe Works power plant employees will transfer to the new company on 1 April 2014 on their current employment terms and conditions.
The Raahe Works own power plant currently generates around half of the electricity used by the works. Most of the electricity is produced from the works' own process gases. Besides being used for electricity production, the heat and steam generated in the processes at the Raahe Works are used for heating on the works site and as district heat for Raahe Energia. Raahen Voima Oy will continue to sell district heat to Raahen Energia.
Established in 1952, EPV Energy is a Finnish energy company specialising in heat and electricity production. EPV's basic task is to acquire cost-efficient electricity for its owners. EPV concentrates on efficient management of the power shares it owns, whilst also striving to continuously improve the competitiveness of the energy supplied to its owners. The company supplies approximately 4.7% of the total electricity consumed over the year in Finland.