Atria Russia to centralise production of meat products in St Petersburg

Atria Plc                Company Announcement 26 November 2010 at 8:00 am       

Atria Russia to centralise production of meat products in St Petersburg         

Atria Russia will shift its meat product production from the Moscow and         
Sinyavino plants to the new, centralised Gorelovo plant in St Petersburg. The   
logistics operations, meat cutting operation and pizza production will remain at
the Moscow meat product plant. If the food market in the Moscow area recovers   
and leads to increased demand the meat product production can be re-commissioned
to increase production capacity.                                                

Located in the St Petersburg area, the Sinyavino plant concentrates mainly on   
the production of cured sausages. Centralisation increases the productivity of  
the entire production structure and makes good use of Gorelovo's new process    
technology. Logistics operations will maintain their current model, both in     
Moscow and in St Petersburg.                                                    

Centralisation will result in a net reduction in personnel of about 300         
employees. Atria Russia currently employs 2073 people. Annual cost savings are  
estimated to amount to EUR 6 million. The cost savings will be fully realised   
starting from Q2/2012. The arrangements will cause a non-recurring adaptation   
cost of about EUR 1.5 million, most of which will be recognised during 2011. An 
additional investment of EUR 1.2 million will also be needed for the Gorelovo   
production equipment.                                                           

Atria has three meat product plants in Russia: the Moscow meat product plant,   
which includes a logistics centre, the Sinyavino meat product plant near St     
Petersburg and the Gorelovo meat product plant, which includes a logistics      
centre in the St Petersburg area. The new Gorelovo production plant and         
logistics centre form the newest and most modern plant in Russia, where         
production began last May. The investment in Gorelovo totalled EUR 70 million.  

For further information, please contact Matti Tikkakoski, President and CEO,    
Atria Plc tel. +358 50 2582 and Juha Ruohola, Executive Vice President, Atria   
Russia, tel. +358 400 647160.                                                   


ATRIA PLC                                                                       
Matti Tikkakoski                                                                
President and CEO                                                               


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