STOCKHOLM, Sweden, June 3, 2003 (PRIMEZONE) -- Nordisk Renting AB has reached an agreement with Cerealia AB for acquisition and construction of a plant for production and distribution of bakery products in Umea worth a total of SEK 155 m. The building in question is being built by Finnish building group Lemminkainen's subsidiary Rekab, and Cerealia has signed a 20-year lease with Nordisk Renting.
Bageri Skogaholm, Schulstad, Kungsornen, Start and AXA are all strong brands within one of the Nordic region's largest food corporations, Cerealia. In the ultra-modern new property, 100 people will bake around 15,000 tonnes of bread every year, which corresponds to Cerealia's bread production for the Swedish market from Hudiksvall north - around half of Sweden by land area. The property is therefore of strategic importance to Cerealia. The property, with a rentable area of 17,000 square metres, is planned for completion in February 2004.
"Cerealia is in a phase of expansion and it suits us well to choose a leasing solution with Nordisk Renting as a long-term and professional property owner, instead of tying up capital in the property," says Hakan Ahlqvist, CEO of Cerealia AB.
Cerealia is owned by the Swedish Farmers' Supply and Crop Marketing Cooperative economic society, which in turn is owned by approximately 50,000 Swedish farmers. The company develops, produces and markets cereal-based foodstuffs. In January 2003 the bakery business of Schulstad A/S was acquired. The acquisition makes Cerealia the Nordic region's biggest player in the bread market, with a total turnover of around SEK 9 bn and 6,000 employees, whereof the bakery business comprises a turnover of approximately SEK 6 bn and has 4,700 employees.
"We are very pleased being able to count Cerealia among our solid customers," said Reinhold Geijer, CEO in Nordisk Renting AB. "The market for Cerealia's products is characterised by stable demand and a high degree of customer loyalty and Cerealia's Nordic market position is getting stronger and stronger."
For further information, please contact
Reinhold Geijer, CEO in Nordisk Renting AB, tel +46 (0)8-670 98 00 or +46 (0)70 314 91 05
Christer Larsson, Business Group Controller in Cerealia, tel +46 8 737 94 02 or +46 (0)70 644 22 42
Nordisk Renting enables financially strong companies and public sector organisations to focus on their core business by offering long-term leasing solutions. By leasing property on a long-term basis from Nordisk Renting, rather than owning it, companies create room to expand and develop their regular operations. Nordisk Renting's turnover amounts to SEK 17 bn and the domestic market is the Nordic region. Nordisk Renting is owned by The Royal Bank of Scotland, which is one of the largest banks in the world and the leading player in Europe within Structured Finance.
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