November, 9. 2005
Atria-owned Valga Lihatööstus acquires pig farm
Atria Group plc's Estonian subsidiary AS Valga Lihatööstus has signed an agreement concerning the purchase of the pig farm OS Linnamäe Peekon. The farm is privately owned and the parties wish not to disclose the purchase price.
The Linnamäe pig farm is located approximately 100 km west of Tallinn. The farm has 600 sows and its cultivated area covers 515 hectares.
The acquisition helps Atria further develop the primary production of pork in Estonia. The goal is to improve Valga's self-sufficiency in meat use with own meat farms. As meat farms in Estonia are small, own meat production is considered an asset since it ensures the availability of meat. Valga already owns cattle and pig farms in Tartu. The company currently produces some 30 per cent of the pork and 10 per cent of the beef processed at its facilities. Valga also requires meat from external sources, also from Finland if Atria needs to export meat. Valga's aim is to increase production to some 5,000 - 5,500 sows in just over two years, which will increase the number of slaughter pigs to approximately 120,000.
AS Valga Lihatööstus has industrial facilities in Valga, at the border between Estonia and Latvia. The company is the second largest beef and pork processing company in Estonia. Valga was privatised in 1994, and since then, the company has performed well and generated profit. Valga's turnover for 2005 will total approximately 20 million euro.
For further information:
Seppo Paatelainen, CEO, tel. +358 400 661 742.
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