Raisio to build a feed plant in Ylivieska

03/07/06 Finnish based Raisio will increase its feed production capacity in the key milk production area by building a feed plant in Ylivieska. This plant will serve livestock producers mainly north of Kokkola-Iisalmi line.

Raisio will build a 140,000 ton feed plant which is planned to be in use by the end of 2008. The value of the investment is approximately EUR 15 million. The modern and cost-efficient plant will employ some 10 people and in addition some 20 people indirectly.

Raisio Feed and the city of Oulu have agreed that Raisio cuts off manufacturing in its feed plant in Toppila. The site will thus become available for house building in June 2009 at the latest. Raisio will book a EUR 2.0 million non-recurring revenue in its Q2/2006 result due to the contractual arrangements related to this project.

Leif Liedes, the president of the Feed and Malt division, comments: ”Ylivieska town was selected among many good alternatives as the location for the new feed plant which is doubling the capacity of Oulu plant. Good location and logistics solutions, existing grain storages as well as the active and enterprise-friendly attitude of Ylivieska town were key criteria. According to our calculations, this investment decision will guarantee the best cost efficiency per feed kilo for the milk producers of the area.”