Atria Oyj - Company Announcement

Atria is planning to increase bovine slaughtering efficiency and to invest in the Kauhajoki slaughterhouse

Atria Plc              Company Announcement  27 October 2008 at 8:05 am (EET)   


Atria is planning to increase bovine slaughtering efficiency and to invest in   
the Kauhajoki slaughterhouse                                                    

According to a preliminary plan Atria Finland is launching a programme to       
increase the efficiency of its bovine slaughtering and deboning operations.     
According to this plan bovine slaughtering and deboning operations could be     
concentrated in Kauhajoki. If the plan will be executed the slaughtering and    
deboning of bovine in Kuopio facilities would be transferred to Kauhajoki.      
According to the preliminary plan, modern slaughter and deboning capacity is    
being constructed in Kauhajoki, to be completed by the end of 2012. Atria's     
bovine slaughterhouses are currently technologically outdated, and significant  
investments in machinery and the premises are required to improve efficiency.   

The rise in feed prices this autumn has brought on severe profitability problems
to the Finnish beef chain. Imported beef in the market is pushing down the price
of domestic beef. The aim is to improve the profitability of the chain by       
cutting costs and streamlining operations.                                      

The aim of the preliminary plan is to improve bovine slaughtering and to cut    
overcapacity. Employer-employee negotiations will be launched to process the    
plan. The execution of the plan would include a net reduction of approx. 120    
man-years by the end of 2012. The annual cost savings to be achieved through the
plan are estimated at EUR 5.0 million.                                          


For further information, please contact Matti Tikkakoski, Managing Director of  
Atria Finland Ltd, tel. +358 50 2582.                                           


ATRIA PLC                                                                       
Matti Tikkakoski                                                                
President and CEO                                                               


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