KESKO EXPANDS ITS OPERATIONS IN ESTONIA

Kesko Corporation is building a logistical centre close to Tallinn to serve its existing and future customers in an area covering the whole Estonia. The terminal will be built at the junction of the Tartu highway and the Tallinn ring road.

According to plan, the total area of the logistical centre will be 10,000 to 12,000 square metres. At the same time, the extension of the company’s cash and carry network will be started, at the first stage a unit will be built in Western Tallinn. The value of these investments is about FIM 50 million. The building projects will be completed within the year of 2000. Kesko’s aim is to build a network of cash & carry outlets covering the whole country in order to serve the local Estonian retail stores and catering customers.

Kesko has been operating in the Estonian market since 1994. Emphasis of operations has been in the grocery market. The major customer groups include retail stores as well as hotels and restaurants. Kesko’s target is a market share of about 25% of the overall Estonian grocery market, the value of which is about FIM 4 billion. Kesko is also interested in acquiring suitable grocery business companies.

In addition to the grocery business, Kesko carries on agricultural trade and the wholesale trade in shoes in Estonia. Anttila’s mail order business is operating in the whole country, and there are four Carrols restaurants and the company Leipurien Tukku As operating in Tallinn. A total of about 180 persons are working for these units in Estonia, and their total net sales amount to about FIM 250 million.

For further information, please contact Vice President Harri Sivula (telephone +358 1053 22213), Director Matti Hukka (+358 1053 23071) or Kesko Eesti As’s Managing Director Timo Hämälä (+372 665 2935).

Kesko Corporation
Corporate Communications

Erkki Heikkinen
Director