Exel to establish a factory in China

EXEL OYJ   STOCK EXCHANGE RELEASE   24.2.2005 at 13.05 1 (2)


The project planning for establishing a factory in China has been
finalized, and Exel has today decided to establish a factory in
Shenzhen in China. The surface area of the new factory will be
some 5,000 square metres. Exel will have the facilities built up
and will rent them with a long-term lease agreement. Main
production equipment will be shipped from Europe. The factory is
estimated to be in full operation in the first part of 2006. The
undertaking is not estimated to have a major impact on personnel
at short-term in the Group’s production plants in Europe.

The need for a production facility in China has become clear as
several customers of the Industry division are moving their
production from Europe to the Far East. Exel is committed to being
a global supplier for its main customers, and as a result, is
ready to serve its customers also outside Europe.

During the first operating years the factory’s main products will
consist of different kinds of industrial profiles both for the
Chinese market and markets outside China. In addition to
industrial products also the manufacture of some of Sport
division’s products will be located in the factory in question in
the long run. The Chinese factory will also be involved in the
sourcing of new raw material and components suppliers in the Far

After the completion of the investment Exel will have two
operating companies in China; in addition to the above-mentioned
factory Exel announced at the end of 2004 that a marketing and
sales company will be established for the Chinese market with the
government-run China Institute of Sports Science research
institute. The application process of the sales company is
expected to be completed in spring 2005.

The Far East will be increasingly significant, both as a new
market area and as a production location of Exel’s present
customers. By becoming established in China Exel strives to
strengthen its market share in the new market area in question and
its competitiveness globally.

Mäntyharju, 24 February 2005

Ari Jokelainen
President & CEO

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Further information:
Mr. Ari Jokelainen, President, Exel Oyj, tel. +358 50 590 6750
Mr. Vesa Korpimies, Executive Vice President, Exel Oyj, tel.
+358 50 590 6754

Exel Oyj is a Finnish company specialised in composite technology.
The Group’s operations consist of sporting goods and industrial
applications. Exel’s best-known products include cross-country and
Alpine poles, Nordic Walking poles, surfboard masts, floorball
clubs and industrial profiles in general. The Group’s six
factories are located in Finland, Germany, Belgium and Spain. Over
80% of production is exported. In 2004 the Group’s net sales
totalled EUR 83.9 million. Exel personnel numbers 450. Exel’s
share is listed on Helsinki Exchanges Main List.