Leipurin to strengthen its position in eastern growth markets by opening a test bakery in Minsk

ASPO Plc/Leipurin Plc          PRESS RELEASE   October 29, 2014

Leipurin Plc will open a test bakery in Minsk on October 29, 2014. The company's objective is to continue its strong growth in Belarus, Russia, and other CIS countries.

Leipurin Plc serves the bakery and other food industries by providing product development services, raw materials needed for baking, and equipment ranging from individual machines to full-scale baking lines. Leipurin is the market leader in Finland, the Baltic countries and in St Petersburg.

"We are investing heavily in growth in eastern markets. In the massive Russian markets, we are the market leader in St. Petersburg and runner-up in Moscow. Our customer coverage exceeds 90 percent in large bakeries in Russia. In Belarus, we are a fresh face, but the opening of the test bakery will help us grow in this market," says Paul Taimitarha, CEO of Leipurin Plc.

Leipurin is a home market company in all of its operating countries where the company has a locally allocated product range.

" Our test bakeries carry out local product development together with our customers. They produce new recipes and products for our customers, and allow them to test new ingredients and different product features," Taimitarha says.

The Minsk test bakery will operate in cooperation with the federal bread institute of Belarus

Leipurin Plc operates around its 12 test bakeries within the company's main market areas. In addition, Leipurin works together with national food universities in Russia, Kazakhstan, and Ukraine.

"In Minsk, we will open our test bakery together with the federal bread institute of Belarus. In Belarus, the bakery industry is mainly owned by the state or bakeries are cooperatives. This means that the federal bread institute is an excellent partner for us," says Matti Väänänen, Vice President, Leipurin East.  

In addition to Belarus, the company is particularly seeking strong growth in Russia.

"The Russian bakery industry is modernizing. It is investing in machines, new production and product development - particularly in major cities where we hold a strong market position. In Russia, bread makes up an important part of culinary culture, and Russia consumes more bread than western countries. Additionally, the increased popularity of supermarkets and hypermarkets in Russia supports the consumption of healthier bread of a higher quality," says Väänänen regarding the future growth of Leipurin in Russia.

Leipurin serves the bakery industry and other food industry by providing product development services, raw materials needed for baking, and equipment from individual machines to full-scale baking lines. Leipurin operates in Finland, Russia, the Baltic countries, Poland, Ukraine, Belarus, and Kazakhstan. In Russia, its operations cover all important geographic areas. In its procurement operations, Leipurin operates both internationally and by developing local procurement. In 2013, Leipurin's net sales were EUR 136 million. www.leipurin.com  

Aspo is a conglomerate that owns and develops business operations in northern Europe and emerging markets, focusing on demanding B-to-B customers. Our strong company brands - ESL Shipping, Leipurin, Telko and Kaukomarkkinat - aim to be the market leaders in their sectors. They are responsible for their own operations, customer relationships and the development of these. Together they generate Aspo's goodwill. www.aspo.com

FURTHER INFORMATION:
Paul Taimitarha, Managing Director of Leipurin Plc, phone +358 9 521 70 or +358 400 699 788,  paul.taimitarha(a)leipurin.com
Matti Väänänen, Vice President, Leipurin East, phone +358 400 845 970, matti.vaananen(a)leipurin.com

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