English

FIRST ACTION FOR THE JOINT VENTURE OF LÄNNEN TEHTAAT AND RAISIO IN RUSSIA

Report this content 
Lännen Tehtaat plc      Press Release    March 22, 2006 at 1;15 p.m.


FIRST ACTION FOR THE JOINT VENTURE OF LÄNNEN TEHTAAT AND RAISIO IN RUSSIA


ZAO Scandic Feed, the fifty-fifty owned joint venture of Lännen Tehtaat and
Raisio, has acquired the control of ZAO Tosno Feed Factory specialized in feed
production and marketing. The factory is located in Tosno town near St.
Petersburg. The parties of the deal have agreed not to publish the acquisition
price.

Scandic Feed will develop the business of Tosno Feed Factory by exploiting the
know-how of Lännen Tehtaat and Raisio e.g. in raw material supply and feed R&D in
order to create customer oriented feeding concepts. Scandic Feed will also
develop Tosno's product portfolio. In Northwest Russia, the joint venture aims to
have a significant market position in the next five years.

ZAO Tosno Feed Factory was established in 1975 and privatized in 1992. The
company produces farm feeds. The production capacity can be tripled without any
major additional investments.

Main part of the production, almost two thirds, is poultry feed, rest being pig,
livestock and other feeds. The turnover of the company was EUR about 10 million
in 2005 and the result slightly positive.

The acquired company has a good logistical location in the Northwest Russian feed
market. The operating area of the company is volume wise almost the same size as
the Finnish feed market. At present, the main part of the production is
distributed to the neighbouring areas of St.Petersburg.

Final closing of the deal is subject to the clearance of the competition
authorities in Russia.

Mrs Kaija Viljanen has been appointed Managing Director of ZAO Scandic Feed. Mrs
Viljanen continues also as the Managing Director of Avena Nordic Grain Oy.


LÄNNEN TEHTAAT PLC

Matti Karppinen
CEO


Further information:
Kaija Viljanen
Managing Director, Scandic Feed
tel. +358 10 402 2510 or +358 40 501 2814


Distribution:

Helsinki Stock Exchange

Principal media

www.lannen.fi

Subscribe