Today EAC's Supervisory Board has in principle approved the overall plans for
an expansion of EAC Food's meat processing production lines in Venezuela, and
later today at EAC's Annual General Meeting information hereof will be given as
follows:
This expansion will help resolve the capacity constraints during 2007 and
further strengthen EAC Food's production lines for the future. The expansion of
the production lines will follow in more stages during the next 4 years:
- In the first stage new machinery and production lines will be installed in
2008, which will facilitate increased production of finished products from
over 62,000 tons in 2007 to 94,000 tons yearly. The equipment will be installed
gradually, and the increased capacity will consequently reach its full effect
as from the beginning of 2010. The investments in purchase of this equipment
were defrayed in 2007.
- Parallel to this in the stages during 2008-2012 a thorough modernisation and
expansion of the production line will follow in order to leverage the capacity
to future growth. Compared to 2007 these initiatives will enable EAC Foods to
more than double production of finished goods, to enhance efficiency and to
automate a number of processes as well as improve the facilities of the
employees and the environmental standards. In total the investments in this
modernisation are expected to amount to approx. USD 120 mio. during the four
years including buildings and machinery. EAC Foods is funding these investments
from operations and from borrowing locally.
At EAC's Annual General Meeting today at 16.00 the Chairman of the Supervisory
Board, Henning Kruse Petersen, will announce that the development of the EAC
performance is against target during the first part of the financial year. EAC
will update its outlook on 8 May 2008 when announcing Q1 Quarterly Report 2008.
The speech of Chairman, Henning Kruse Petersen, will be published at 16.00
(CET).
Yours sincerely,
The East Asiatic Company Ltd. A/S
(A/S Det Østasiatiske Kompagni)
For additional information, please contact:
President & CEO Niels Henrik Jensen
+45 3525 4300
+45 2023 2188 (mobile)
nhj@eac.dk
Group CFO Michael Østerlund Madsen
+45 3525 4300
+45 2041 0957 (mobile)
mom@eac.dk
www.eac.dk
This English version is provided for convenience only and in case of
discrepancy the Danish version shall prevail.
