Celsius in Nordic merger regarding ammunition

Celsius - Patria - Raufoss: Nordic merger between ammunition suppliers Following the Letter of Intent signed in June Celsius AB (Sweden), Patria Industries Oyj (Finland) and Raufoss ASA (Norway) now have signed the final agreements to form a jointly owned Nordic Ammunition Company named Nammo AS. Nammo AS is a Norwegian company with its main office in Raufoss, Norway. The st operations will commence October 1 , 1998, pending formal approval by the national authorities, Nammo AS is owned 45 per cent by Raufoss and 27,5 per cent by each of Celsius and Patria. The annual turnover will be NOK 1500 mill. and the company will have 1 400 employees. The business idea of Nammo is to design, develop, manufacture, test, improve shelf-life, demil and market ammunition products. The legal corporate structure includes a holding company Nammo AS will fully owned subsidiaries Nammo Lapua Oy in Finland, Nammo Raufoss AS in Norway and Nammo Liab AB in Sweden. From the start, Mr Per-Erik Forsmark, Executive Vice President of Celsius AB is elected Chairman of the Board and Mr Jorma Eloranta, President and CEO of Patria Industries Oyj, is elected deputy Chairman of the Board. Mr Olaf Valeur, Vice President of Raufoss Technology AS is appointed President of Nammo AS. The company will be organized in product areas - divisions - across the national borders. This will allow for rationalization and improved cost efficiency within each division. Nammo will be able to serve the customers even better both domestically and internationally. The Company will have a broader base in technology and products. Nammo will have a potential for increased competitive strength in the international market. The establishing of Nammo is consistent with the political intentions for increased Nordic cooperation. The new arrangement is subject to approval by the authorities in both countries. For further information, please contact: Celsius Corp. Executive Vice President Per-Erik Forsmark, tel +46 8 463 00 00 or Kjell Göthe, Director/Corporate Communications, tel +46 8 463 00 19, mobile + 46 70 583 95 44. Patria Industries Oyj President & CEO Jorma Eloranta, tel +358-9-725 13 11; or Ms. Tiina Hansson, Director/Corporate Communications, tel +358 9 725 13 210, mobile +358 50 5494 192. Raufoss ASA President & CEO Nils Erik Skarsgård, tel +47-61-15-23 40, mobile +47-920-44257 or Vice President Olaf Valeur, tel +47-61-15-19 50, mobile +47-913-37833 or Birger Hofsten, Director/Corporate Communications, tel +47 61 15 25 38, mobile +47 943 64 524. Celsius is an advanced-technology international industrial group, with domestic markets in the Nordic countries, the U.S.A. and Australia. Firmly founded on a comprehensive joint technological base, operations focus primarily on three priority areas: Defence, Commercial Aviation Services and Business Development, which currently comprises Materials technology, Explosives and Infomatics. With annual sales of approximately SEK 12 billion, the Celsius Group numbers some 11,000 employees. Patria Industries is a technology Group whose companies have long traditions in the manufacture of high-class industrial products. Among the most important products and services are aircraft maintenance, aerospace structures and electronic systems, military and special vehicles, field guns and mortars, cartridges, powders, explosives and other ammunition. With annual sales of approximately FIM 1 billion the Patria Group numbers some 2,322 employees. Raufoss is a Norwegian industrial Group with a 102-year history as a supplier of defence products. Defence technology has even been the basis for developing a commercial product range for mainly water and gas supply networks, heavy vehicles, the automotive and aerospace industries. With a total annual turnover of NOK 2.5 billios, the Raufoss Group numbers some 2,900 employees. The market for Raufoss defence products represented by NATO countries and some other countries approved by the Norwegian authorities primarily involves on the genuine multipurpose medium calibre ammunition concept and RA´s rocket motor technology.