AS Premia Foods and insurance company Fennia signed an agreement to indemnify the damages of the fire On June 28th, 2010, Heimon Kala Oy, the subsidiary of AS Premia Foods and insurance company Fennia signed the agreement about the reimbursement of the damages caused by the fire in the production unit of Heimon Kala Oy in Uusikaupunki on May 20th 2010 in the total amount of 2,9 million EUR. The above amount will cover all direct damages to the property and inventory in the total amount of ca 1,2 million EUR and business interruption and labor cost in the total amount of ca 1,7 million EUR. As the result of the transaction, Heimon Kala Oy will have extraordinary income of approximately 2,2 million EUR in the 2nd quarter 2010. Heimon Kala Oy operated in rented premises in Uusikaupunki, the equipment was in the ownership of the company. The production unit in Uusikaupunki produced mainly smoked fish products for Finnish market. The main fish production unit of AS Premia Foods is located in Saaremaa, Estonia. The total effect of the fire on the consolidated financials and operations of AS Premia Foods in not material. Due to the changes made in the product portfolio and production processes, the current sales volume is about 75% of the pre-fire period and the full capacity is planned to be reached by the beginning of 4th quarter 2010. Additional information: Andri Avila CFO AS Premia Foods Tel: +372 6 033 800 E-post: andri.avila@premia.ee http://www.premiafoods.eu
AS Premia Foods and insurance company Fennia signed an agreement to indemnify the damages of the fire
| Source: PRFoods