FORSSA SLAUGHTERHOUSE PROJECT PROGRESSES AS PLANNED

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HK Ruokatalo Group Oyj    RELEASE 23 August 2005, at 2:30pm

FORSSA SLAUGHTERHOUSE PROJECT PROGRESSES AS PLANNED

The first phase of the extensive efficiency and modernisation project
at HK Ruokatalo’s Forssa production plant is approaching the
deployment stage. The new EUR 20 million pork slaughtering line, quick
carcass refrigeration plant and other facilities will replace the old
line dating from 1987. The project will safeguard the long-term
slaughtering of pork.

Cost-effectiveness is a key success factor in the slaughtering
business. The investment will take Forssa to the cutting-edge of
efficiency in Europe. The line features the latest state-of-the-art
technology and a higher degree of automation, which in turn reduces
laborious, repetitive work stages. Additionally, the investment will
also lead to a fall in specific water and energy consumption.

Greater efficiency means the new line will require fewer people than
the old one to operate it. Whilst many employees will switch over to
the new line either directly or after training, unfortunately some
jobs will be lost in the process. To this end we will have to initiate
employer-employee negotiations with workers and white-collar employees
in the pork slaughterhouse divisions at Forssa. We expect around 68
jobs to be lost.

The Forssa production plant has some 600 permanent employees, 140 of
whom work in slaughtering.

The Forssa production plant slaughters and cuts pork. HK Ruokatalo
also has a pig slaughterhouse in Mellilä, a beef slaughterhouse in
Outokumpu and poultry slaughterhouses in Eura and Säkylä. HK Ruokatalo
is the largest processor of Finnish meat and processed 142 million kg
in 2004.


HK Ruokatalo Group Oyj



Simo Palokangas
CEO



DISTRIBUTION:
Helsinki Exchanges
Internet: www.hk-ruokatalo.fi

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