PRF: The improvement of the production efficiency of the fish processing units of AS Premia Foods

Stock Exchange News
28 September 2010
The fire in the fish processing unit of AS Premia Foods in Uusikaupunki in May
this year, in the course of which the latter's production equipment of smoked
fish products was seriously damaged, gave the company a chance to thoroughly
analyse the productive and logistical efficiency of all fish processing units
owned by the company. 
As a result of the analysis the company has decided to end the processing of
fish on leased premises in Uusikaupunki by no later than 31 December 2010 and
to concentrate fish processing into the company's production units in
Hämeenlinna and Saaremaa. This solution is the most cost-effective, enabling
annual savings of 3.1 million kroons in lease expenses. The volume of
investments required for the reorganisation is approximately 15 million kroons. 
In the 37th week, the production of smoked fish products was started in
Hämeenlinna in partial capacity and according to the schedule of investments,
full production capacity will be reached by the end of this year. 
The fire in May did not affect the consolidated financial results of AS Premia
Foods significantly as by now, due to the quick reorganisation of production
and the sales portfolio, the company has restored approximately 75% of the
sales volumes prior to the fire. The share of fish and fish products in the
consolidated turnover of AS Premia Foods in the first half of 2010 was 39.9%,
i.e. 226.4 million kroons. On 28 June 2010, Heimon Kala OY, subsidiary of AS
Premia Foods, and insurance company Fennia concluded an agreement to indemnify
the damage caused by the fire, according to which insurance company Fennia
indemnified the incurred damages in the extent of 2.9 million euros. The
specific description of the damages indemnified is available in the stock
exchange notice of AS Premia Foods, dated 30 June 2010. 

Additional information:
Kuldar Leis
AS Premia Foods
Chairman of the Management Board
Tel: 6 033 800
kuldar.leis@premia.ee