Paulig signed preliminary contract…

On January 23 Paulig signed a preliminary contract for the purchase of a plot comprising roughly five hectares of land in Borovlevo, Tver. The final contract will be signed within a few months. At the same occasion, Paulig signed a letter of intent with the Tver authorities to ensure that the regional administration supports the implementation of the plan. Tver is about 170 kilometres from Moscow in the direction of St Petersburg along good transport links.

If all goes according to plan, the Russian roastery will be completed during 2009. The value of the first phase of the investment is roughly 12 million euros. The roastery will provide about 60 jobs initially.

“The construction of a roastery in Russia will be important for our competitiveness. Roasting in Russia is worthwhile, as there is high import duty on ready-made coffee products. A local roastery will make deliveries more flexible and speed up the turnaround of products. Exports to the CIS countries will also become competitive,” Pekka Pirinen declares.

“We are currently building a new roastery in Finland. This will serve primarily Finland and the Baltic countries but also the market in the rest of the EU . The construction of the Russian roastery will not affect the need for personnel at the Vuosaari roastery.”

Further information:

Managing Director Pekka Pirinen, Gustav Paulig Ltd, Tel. +358 400 215433

The Tver region (?????) is at the confluence of the Volga and Tvertsa Rivers about 170 kilometres north of Moscow. The city has a population of roughly 450,000, some of whom are Tver Karelians

. From 1931 until 1990 Tver was known by the name Kalinin.