Eastern European Markets

October, the 8th 2009

Paulig builds a coffee roastery in Tver

The Finnish coffee company Paulig has started to build a coffee roastery in Borovlevo, Tver. The foundation stone of the factory was laid down in October 8. The roastery is planned to be operational in the first half of 2011 and it will serve the Russian and in the future also other CIS-markets. The value of the whole investment is about 20 million euros.

The construction of the coffee roastery in Borovlevo industrial area was started at the end of September. The main constructor is ZAO Haka Moscow and the building has been designed by the Finnish KVA Architects Ltd. The factory’s production capacity is 6000 tonnes annually and it will employ 60 persons at first. The capacity will be sufficient for the next few years and possibilities for an extension will be figured into the construction. Paulig bought the plot of land for the factory in 2008.

– Demand of high quality natural coffee is increasing in Russia despite the economy crisis. We see Russia as a market of great opportunities. Construction during a recession is financially logical and it will give us a good basis to go ahead at full speed when the economic upswing gets under way again. The Russian roastery will substantially improve our competitiveness in Russia, as there is high import duty on finished goods. It will improve our service level and increase flexibility. Exports to the CIS countries will also become competitive, declares Pekka Pirinen, Gustav Paulig Ltd’s Managing Director.

– Paulig will also in future keep focus on producing premium products of Paulig brand. The local production in Tver allows production of quality coffee to mainstream and economy price segments. Besides our own products we can offer private label production services in future, says Denis Smirnov, General Director of Paulig Rus Ltd.

– We have planned several years to open a roastery in Russia and have been looking for a good place to operate. Food industry sets special requirements to the location and environment. In Tver we have found excellent prerequisites for our operations and have received from Tver administration a very positive reception. Until now everything has gone smoothly, thanks Bertel Paulig, Paulig Group Chairman of the Board.

About Paulig in Russia
Paulig has operated in the Russian markets since 1992 and established sales and marketing company OOO Paulig Coffee in 2008. The company is selling high quality natural coffee product. Sales volume of Paulig coffee is approximately 3000 tonnes per year. The company’s market share is in natural coffee segment 17% in modern retail chains (ACNielsen).
Paulig’s roastery project in Russia in nutshellIn Paulig’s coffee roastery project, both production and needed office facilities are being built in, and operations will start in 2011. The roastery’s production capacity will be of 6 million kilos or over 12 million packets of coffee a year. If demand increases, capacity can be boosted by expanding the production process and extending the building. The production plant will serve the Russian and CIS markets. The main designer is Finnish KVA Architects Ltd. The construction is the responsibility of the Russian ZAO HAKA Moscow. The investment is valued approximately EUR 20 million.

Paulig’s main roastery and head office are located in Helsinki, Finland and they have lately moved to new premises.

Technical details of Paulig Tver roastery
Area of the site 7.5 hectares
The dimensions and premises of the building:
- Surface area approx. 5 040 square metres
- Coffee production facilities 3 350 square meters
- Technical facilities 580 square meters
- Office and social facilities1 110 square meters
- Production volume roughly 51 600 cubic metres

Further information:
Managing Director Denis Smirnov, OOO Paulig Coffee
Managing Director Pekka Pirinen, Gustav Paulig Ltd
Mobile phone +358 400 215433
Communications Manager Leena Miettinen, Gustav Paulig Ltd
Mobile phone +358 40 562 7302,

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