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Dovre Group Plc (0JCD)

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Thursday 25 July, 2019

Dovre Group Plc

SaraRasa pellet off-take agreement extended until January 2024

SaraRasa pellet off-take agreement extended until January 2024

Dovre Group Plc                                Press Release                                  July 25, 2019 at 8.00 a.m.

SaraRasa pellet off-take agreement extended until January 2024

SaraRasa Bioindo Pte. Ltd. has agreed with Cellmark Ab to supply its entire production of pellets for a four-and-a-half-year period starting August 2019 and ending in January 2024. The agreement has provisions and flexibilities regarding market prices and production volumes and due to these parameters, the value of this contract is estimated to be between USD 31 million and USD 36 million. This new off-take agreement replaces the previous 12-month agreement announced April 30, 2019 between the same parties with a value of USD 7 million.

"This long-term contract gives SaraRasa financial security to increase our production capacity further, while at the same time allowing us to follow market trends in product pricing. Cellmark has been our business partner already for three years and we are confident that they are good match for us in the biomass industry also going forward," says Sararasa Director Mr. Ilari Koskelo.

SaraRasa continues to seek investors to build another pellet factory in Indonesia. The new factory project has been delayed in favor of increasing capacity in the current factory. Dovre Group Plc holds 19.9% of SaraRasa’s shares and presents the ownership as a financial asset at fair value through profit and loss.

For further information, please contact:

SaraRasa Bioindo Pte. Ltd., 
Ilari Koskelo, Director
[email protected]

Dovre Group is a global provider of project management services. Dovre Group has two business areas: Project Personnel and Consulting. The company has offices in Canada, Finland, Norway, Singapore and the
USA and employs more than 650 people worldwide. Dovre Group is listed on the Nasdaq Helsinki (symbol: DOV1V).

SaraRasa Bioindo Pte. Ltd., a pellet producer using residual materials from wood working industries, owns and operates a wood pellet production line in Surabaya, Indonesia. SaraRasa’s major shareholders are Navdata Oy, Dovre Group Plc and Finnfund.

CellMark AB is a global supply chain service company. Founded in 1984 in Gothenburg, Sweden, CellMark has its roots in the international trade and distribution of raw materials related to the global Pulp and Paper Industry. Today, CellMark has seven divisions. Its Energy division promotes the production, trade and proliferation of biomass-based alternative energy fuels and other waste-to-energy commodities for more environmentally conscious materials for heat and power. CellMark’s annual sales are USD 2.9 billion.

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