Atria Russia to centralise production of meat products in St Petersburg
Atria Russia will shift its meat product production from the Moscow and Sinyavino plants to the new, centralised Gorelovo plant in St Petersburg. The logistics operations, meat cutting operation and pizza production will remain at the Moscow meat product plant. If the food market in the Moscow area recovers and leads to increased demand the meat product production can be re-commissioned to increase production capacity.
Located in the St Petersburg area, the Sinyavino plant concentrates mainly on the production of cured sausages. Centralisation increases the productivity of the entire production structure and makes good use of Gorelovo's new process technology. Logistics operations will maintain their current model, both in Moscow and in St Petersburg.
Centralisation will result in a net reduction in personnel of about 300 employees. Atria Russia currently employs 2073 people. Annual cost savings are estimated to amount to EUR 6 million. The cost savings will be fully realised starting from Q2/2012. The arrangements will cause a non-recurring adaptation cost of about EUR 1.5 million, most of which will be recognised during 2011. An additional investment of EUR 1.2 million will also be needed for the Gorelovo production equipment.
Atria has three meat product plants in Russia: the Moscow meat product plant, which includes a logistics centre, the Sinyavino meat product plant near St Petersburg and the Gorelovo meat product plant, which includes a logistics centre in the St Petersburg area. The new Gorelovo production plant and logistics centre form the newest and most modern plant in Russia, where production began last May. The investment in Gorelovo totalled EUR 70 million.