Emmi and MIBA to Invest in the Basel Region

Emmi has now signed a purchase agreement with Regio Milch beider Basel AG covering the latter company's land, building and production equipment.

Sep 21 2010 --- Emmi has signed an agreement to purchase the land, building and production equipment of the former company Regio Milch beider Basel AG in Frenkendorf. MIBA Milchverband der Nordwestschweiz, an association of milk producers in North-Western Switzerland, is also involved in this purchase. Together, Emmi and MIBA will invest around CHF 2 million in the production facilities and will create as many as 20 jobs. Beginning in the spring of 2011, Emmi will produce a line of dairy products in Frenkendorf using milk from regional milk producers. The line will be sold by local retailers - in particular Coop.

The Regio Milch beider Basel AG plant in Frenkendorf was closed down in mid-June 2010 after the failure of composition proceedings. Emmi has now signed a purchase agreement with Regio Milch beider Basel AG covering the latter company's land, building and production equipment. This purchase enables Emmi to strengthen its domestic business in Switzerland, particularly in North-Western Switzerland.

Regional products as of the spring of 2011
Beginning in the spring of 2011, dairy products such as milk, cream and yoghurt will be produced at the new Frenkendorf plant, for the most part using milk from the region. This will allow Emmi to meet the increasing demand in the future for products produced in the region. As Urs Riedener, Emmi CEO, emphasizes, "Emmi is delighted to be able to process milk from North-Western Switzerland locally. Coop and other retailers are also very interested in regional products and are supporting our project. Customers can look forward to enjoying regional products."

MIBA also involved
MIBA Milchverband der Nordwestschweiz, an association of milk producers in North-Western Switzerland, will also have a stake in the new dairy plant in Frenkendorf. Having milk-processing operations in the region has always been a high priority for the cooperative. In the words of MIBA President Daniel Jenni, "The milk plant means that added value remains in the region. In addition, regional products only make sense when distances from consumers are short."

Dairy plant creates jobs
Before production can begin, Emmi and MIBA will invest around CHF 2 million in equipment in order to be able to produce high-quality products in the future. Jobs will also be created in Frenkendorf. Initially there will be around five to ten additional jobs, increasing to around 20 over the long term.

The purchase can be completed as soon as the sale of company assets has been approved by the General Shareholders' Meeting of Regio Milch beider Basel AG. Emmi will not take over any of the company's liabilities. The parties have agreed not to disclose details about the purchase price.