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2008-06-06 10:00:00 CEST 2008-06-06 10:00:00 CEST REGULATED INFORMATION HKScan Oyj - Company AnnouncementHK RUOKATALO AND SAARIOINEN SIGN AN AGREEMENT ON CHICKEN RAW MATERIAL SOURCINGHKScan Oyj STOCK EXCHANGE BULLETIN, 6 June 2008 at 11.00am HK RUOKATALO AND SAARIOINEN SIGN AN AGREEMENT ON CHICKEN RAW MATERIAL SOURCING On 27 February 2008, HK Ruokatalo and Ruoka-Saarioinen Oy announced a preliminary agreement under which HK Ruokatalo would source the raw materials for bone-in chicken leg and split breast products as well as whole broilers from Ruoka-Saarioinen while Ruoka-Saarioinen would acquire its boned chicken raw material from HK Ruokatalo. The execution of the final contract was conditional on confirmation on issues pertaining to i.a. competition legislation. Following assessments of competition impacts, the Finnish Competition Authority stated that there was no need for further assessments. This enabled the parties to sign their final agreement on chicken raw material sourcing today. Sourcing under the agreement is anticipated to begin by the end of October in autumn 2008. As well as securing access to Finnish chicken raw material, it is hoped the arrangement will help achieve functional advantages such as increased production capacity utilisation rates. The arrangement will result in HK Ruokatalo's Eura production facilities focusing on boned chicken products and the processing of boned chicken raw material. The contractual arrangements will have no impact on the competitive relationship between the two companies or their product offerings. HK Ruokatalo intends to continue the comprehensive processing and sales of all chicken products. In 2007, HK Ruokatalo's plant in Eura processed 42.5 million kg of chicken while the annual processing volume at Ruoka-Saarioinen's Sahalahti plant was 10.8 million kg. HKScan Corporation Kai Seikku CEO Further information: Managing director Jari Leija, HK Ruokatalo Oy. Please leave any messages for him to call with Marjukka Hujanen, tel: +358 (0)10 570 6218. DISTRIBUTION: OMX Nordic Exchange Main media www.hkscan.com |
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