RAUTAKESKO LTD AND KESKO AGRO LTD START OPERATIONS

On 1 October 2001, Kesko Corporation’s hardware and builders’ supplies and agricultural business operations are transferred to Rautakesko Ltd and Kesko Agro Ltd respectively, Kesko Corporation’s wholly-owned subsidiaries, in accordance with the plan decided in August 2000. Kesko Corporation’s machinery business operations are transferred to Kesko Machinery Ltd, which becomes Kesko Agro Ltd’s subsidiary.

The deeds of assignment concerning the transfer of the business operations were signed today. Kesko Corporation’s subsidiaries responsible for the food trade and the home and speciality goods trade, Kesko Food Ltd and Keswell Ltd respectively, started operations on 1 April 2001.

Matti Halmesmäki is the President of Rautakesko Ltd, responsible for the hardware and builders’ supplies trade, and of Kesko Agro Ltd, responsible for the agricultural trade. In 2000, net sales of Kesko’s hardware and builders’ supplies trade were EUR 786 million and operating profit was EUR 10.5 million. Net sales of the agricultural and machinery trade were EUR 625 million and operating profit was EUR 5.2 million.

The incorporation of business operations by division increases the flexibility of Kesko and the subsidiaries established to meet the requirements of markets and internationalisation.

For further information, please contact Matti Halmesmäki, President of Rautakesko Ltd and Kesko Agro Ltd, telephone +358 10 53032.

Kesko Corporation
Corporate Communications

Erkki Heikkinen
Senior Vice President

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