KESKO AGRO TO EXPAND ITS OPERATIONS TO LITHUANIA

UAB Kesko Agro Lietuva, the subsidiary of Kesko Agro, is opening a new agricultural and machinery trading centre in Vilnius, Lithuania today.  Kesko is building an extensive chain of agricultural and machinery stores and regional sales outlets in the Baltic countries. The target is to become the market leader in the Baltic countries in this business sector.

The agricultural and machinery trading centre opened now is the Kesko Group’s first commercial unit in Lithuania. Operations in Lithuania are based on the same system as Kesko Agro’s business operations in Latvia and Estonia.

The Vilnius trading centre will act as the headquarters for heavy machinery sales, imports, distribution, after-sales marketing and administration in Lithuania.  UAB Kesko Agro Lietuva will also supply agricultural accessories to local retail stores. Kesko Agro Lietuva employs a staff of about 40.

The centre opened in Vilnius consists of a 1,200 sq.m. store area, a 1,000 sq.m. office area and a 1,500 sq.m. warehouse area. Premises have been rented for agricultural machinery sales and service operations in Kaunas. Kesko Agro Lietuva aims at building a trading centre that will concentrate in agricultural machinery sales and service operations in Kaunas during 2002.

The markets for agricultural and machinery trade are expected to develop vigorously in the Baltic countries. For instance, the average age of machinery is very high, and new investments are estimated to grow by nearly 20 percent annually in the next few years. The possible EU membership will significantly increase investments in agriculture and machinery.

Kesko Agro Lietuva will act in close co-operation with the most important international and local companies in its business sector. Major product brands represented by Kesko Agro are the same in Finland and in the Baltics. These include Deutz-Fahr tractors, Claas combines and Fiat Hitachi construction machines.

Kesko Agro Eesti A/S, Kesko Agro’s subsidiary in Estonia, will open a new agricultural and machinery trading centre in Jüri, the Tallinn area, in June this year.

In 2001, Kesko Agro’s net sales in the agricultural and machinery trade in the Baltics amounted to EUR 40 million, and the target for the year 2002 is EUR 55 million. Kesko Agro has about 150 employees in its Baltic operations. The net sales of Kesko Agro Ltd totalled EUR 699 million in 2001.

For further information:

Executive Vice President Kimmo Vilppula, Kesko Agro, tel. +358 50 65616
Project Director Jouni Oksanen, Kesko Agro, tel. +358 500 535519