releases
Eastern European Markets
PRESS RELEASE
April 4, 2005

John Nurminen expanding its wagons business and has acquired a share in ZAoO Intrans (4/4/2005)

John Nurminen Oy is expanding its railway wagons business in the railway transports between Finland and Russia. In accordance with an agreement signed on 1 April 2005, it has acquired a 49% share in the St. Petersburg based railway operator ZAO Irtrans. At the same time it has acquired the company's entire rolling stock.

This transaction expands John Nurminen's wagons business services and ensures a skilled and developing environment for the wagons operations. John Nurminen is now able to offer an even more comprehensive wagon range for railway transports between Finland and Russia. Skilled operation speeds up the wagons' turnaround times and guarantees a flexible and cost-effective service.

ZAO Irtrans is a Russian railway operator based in St. Petersburg. The company employs 25 railway operation professionals. The ownership share in Irtrans also increases John Nurminen's local knowledge in wagon operations in Russia. The expected turnover for the new entity is about 8 million euros. Director Kaj Kulp, who is responsible for John Nurminen's business development and railway operations, describes the deal as follows: "Irtrans is a well-known, reliable company in northwest Russia, backed by decades of railway know-how. In our experience the company has a good reputation among customers. This is why we decided to consolidate our business partnership with Irtrans through the ownership arrangements we have now implemented."

Together with the rolling stock investments made in 2004, this transaction strengthens John Nurminen's position as a significant wagons operator in the railway transports between Finland and Russia. The objective of John Nurminen's Wagons Unit is to expand its business significantly during the next few years. This growth will be achieved by developing the logistics systems and the rolling stock in cooperation with customers. The increased demand for domestic rail transports within Russia will also support this development.

John Nurminen's objective is to double its turnover during the next few years. Some of this growth will be achieved through company acquisitions and some by extending the service concepts or by developing new ones. Investments will be made chiefly in the domestic market and in the Russian and Baltic regions. The expansion of the wagons business will support the company's growth strategy. "John Nurminen has made sizeable investments in the wagons business last year and this year. The expansion of the wagons business is based on the needs of our clientele, and it also supports the efforts to extend the service concepts in our company's timber division", says Managing Director Jan Lönnblad.

John Nurminen is a 119-year-old Finnish, family-owned logistics company. It is an international player with the Baltic region as its main market area. In 2004 its turnover was approx. EUR 97 million and it employed some 550 personnel.

Further information
Managing Director Jan Lönnblad
John Nurminen Oy, tel. +358 0 545 2420
Director Kaj Kulp
John Nurminen Oy, tel. +358 10 545 2661

www.johnnurminen.com


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