Snaige AB - Notification on material event

AB „Snaigė“ will establish a joint venture with Kazakh national business corporation “Saryarka”

Information published in “Verslo zinios” February 26 related “Snaige” future
partners is not correct 

On 26 February 2010 management board of AB „Snaigė“ has decided to establish a
joint venture with Kazakh national business corporation “Saryarka”. The new
company will build household refrigerating equipment manufacturing plant in
Astana, later it will be responsible for manufacturing and refrigerators sales
in Kazakh, Russian, Kyrgyzstan and other neighboring markets. 

The asset contribution of AB „Snaigė” into the new joint venture will comprise
of manufacturing equipment transferred from closed Kaliningrad plant and
manufacturing know-how. AB „Snaigė” will be responsible for launch of
manufacturing operations in the new plant, assurance of effectiveness of
manufacturing technologies, and organization and planning of sales and
marketing processes. The Company's partner corporation “Saryarka” will be
responsible of acquisition of land plot for the building of a plant, management
of building processes, supply of labor force and financial resources. 

According to the chairman of the management board of AB „Snaigė“ Nerijus
Dagilis, the establishment of a new business venture and building of a new
plant is highly advantageous for the Company. „After the close down of
Kaliningrad plant our sales have decreased significantly“- said N. Dagilis. „If
the new business venture secures financing, the redeployment of manufacturing
to Kazakhstan not only will allow AB „Snaigė“ to establish presence in Kazakh
market, but also after the duty-free trading policy sets in will help us to
regain lost position in Russia as well as to enter other neighboring markets. 

The new joint venture will allow business consortium „Saryarka“ to contribute
to the implementation of rapid industrialization strategy set by Kazakh
government. According to the chairman of the management board of the consortium
Berik Kamalijev, building of refrigerators manufacturing plant will be the
first project of such level in Kazakhstan. „The establishment of the plant will
significantly contribute to the formation of positive image of the Republic of
Kazakhstan“- said B. Kamalijev. „Moreover, the plant will create new
workplaces, the network of supporting businesses will cluster around the
plant.“ 

AB „Snaigė“ manufacturing plant in Alytus will further manufacture
refrigerators for Baltic, Ukraine, Western and Central Europe markets. 

About „SPK-Saryarka“
Public limited corporation „National company Social-business corporation
„Saryarka“ was established in 2007 following order of the president of the
Republic of Kazakhstan N. Nazarbaev. The mission of the corporation - to
promote economic development in Kazakhstan capital Astana, districts of
Akmolinsk and Karaganda. The goal of the corporation - creation of competitive
manufacturing businesses able to export their products, establishment of
effective systems for state assets management, launch of innovative projects,
creation of business conditions favorable for development of small businesses. 
The work of the corporation is developed by applying public-private-partnership
model. “SPK-Saryarka” invests half of earned profit into development of
manufacturing industries not related extraction of raw materials, other part is
devoted for implementation of social projects. “SPK-Saryarka” owns 22 companies
working in alternative fuel manufacturing area, manufacturing companies
oriented to meeting resident needs, transport, logistics, building, waste
recycling, agricultural, and medicine manufacturing companies. 


More information:
Nerijus Dagilis 
Chairman of AB „Snaigė“ management board
8-52-644-740
Gediminas Čeika