Press release

Fortum sells its Central Finland peat production to Vapo

29 May 2009, 13:00 EEST

Fortum Power and Heat Oy
Press release
29 may 2009

Fortum sells its Central Finland peat production to Vapo According to a contract signed today 29 May 2009 between Fortum and Vapo Oy, Fortum sells its Central Finland peat production to Vapo. At the same time, Fortum and Vapo made a long-term contract on delivering peat to Fortum's Joensuu power plant. Fortum's peat bogs to be sold are mostly located in leased areas in the municipalities of Soini, Karstula, Saarijärvi and Petäjävesi and their combined area is approximately 600 hectares. Fortum does not employ permanent staff in peat production. The divestment is part of the business development programme of Fortum's Heat segment aiming at ensuring long term profitability of the segment. - We are withdrawing from peat production in an area where we do not need peat ourselves. With the new delivery contract, we guarantee the fuel supply to our Joensuu power plant and strengthen the competitiveness of its production, says Miikka Veikkola from Fortum. Through the purchase, Vapo enhances its delivery potential in Central Finland and increases the utilisation rate of its peat production areas in North Karelia. - Areas that we now acquire are in an excellent shape and increase immediately Vapo's potential for production and delivery in Central Finland, says Risto Jormalainen, Resource Director from Vapo. Fortum Heat Communications Further information: Miikka Veikkola, Energy Sales Director, Fortum Heat, tel.: +358 50 453 6296 Risto Jormalainen, Resource Director, Vapo Oy, tel.: +358 20 790 5632 Tommi Ruha, Sales Director, Vapo Oy, tel.: +358 20 790 4426