FIRST ACTION FOR THE JOINT VENTURE OF RAISIO AND LÄNNEN TEHTAAT IN RUSSIA
Raisio plc Press Release 22 March 2006 at 1.15 p.m. Finnish time
FIRST ACTION FOR THE JOINT VENTURE OF RAISIO AND LÄNNEN TEHTAAT IN RUSSIA
ZAO Scandic Feed, the fifty-fifty owned joint venture of Raisio and Lännen
Tehtaat, 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 Raisio and Lännen Tehtaat in e.g. raw material sourcing and feed r&d
in order to create customer oriented feeding concepts. Scandic Feed will also
diversify Tosno's product portfolio further. In Northwest Russia, the joint
venture aims at 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 with the operating area of
the Northwest-Russian feed market being volume wise almost at the same size as
the Finnish feed market. As of today, main part of the production is distributed
to the region neighboring 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. In
addition, she continues as the Managing Director of Avena Nordic Grain Ltd.
RAISIO PLC
Taru Narvanmaa
Executive Vice President, Communications and Investor Relations
tel. + 358 2 443 2240 or +358 50 590 9398
Further information:
Kaija Viljanen, Managing Director, Scandic Feed
tel. +358 10 402 2510 or +358 40 501 2814
Distribution:
Helsinki Exchanges
The key media
www.raisio.com