KESKO CORPORATION STOCK EXCHANGE RELEASE ... - Euroland

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On 29 January 2001, Kesko was granted an exceptional permit to
fix, on certain conditions, the highest prices for some of its
products offered by the K-superstores. The permit granted was
more restricted and applied to a shorter period than Kesko had
hoped. The exceptional permit is valid from 1 January 2001 to 31
December 2003. On 16 February 2001, the Office of Free
Competition granted the same kind of permits for the products
sold by the Citymarkets and K-supermarkets, and on 30 March 2001
for the products sold by the K-neighbourhood and K-extra stores.
Concerning the other chains, Kesko expects to receive the
decisions of the Office of Free Competition during this year.
According to Kesko, the permits granted by the Office provide
Kesko and the K-stores a good basis for operating in line with
the new chain system.
Kesko´s logistics centre at the junction of the Tallinn ring
road and the Tallinn-Tartu highway in Jüri was complemented on
20 February 2001. The logistics centre with a total floor area
of 16,200 square metres represents an investment of about EUR
8.4 million. The centre employs about 100 persons. The logistics
centre provides services to the entire area of Estonia. It
provides local retail stores and catering customers with a full
range of modern logistical services that meet EU standards. At
the same time, the centre serves as a warehouse for imported
groceries and supports the building of Kesko’s own retail store
network in the country. The unit also offers an efficient
distribution and export channel for the Estonian food industry.
On 5 March 2001, an environmental certificate was granted to
Kesko Food´s logistical operations and Kesped Ltd for
successfully installing an environmental system that complies
with the international ISO 14001 standard. The certificate
concerns the warehousing of groceries, terminal operations and
transport. This certificate for an environmental management
system is the first environmental award presented to a Finnish
food business.
On 30 March 2001, Kesko Corporation signed an agreement to sell
the majority shareholding (80%) of its IT subsidiary, Tietokesko
Oy, to TietoEnator Corporation. The aim is to implement the deal
so as to allow Tietokesko´s operations to continue under the new
ownership structure from 1 June 2001. The target of both owners
is to develop Tietokesko so that it can produce even better IT
services for Kesko´s business operations.
On 30 March 2001, the Carrols chain’s Estonian subsidiary,
Carrols AS, sold its restaurant operations in Tallinn to
Hesburger AS. Carrols AS had three restaurants in Tallinn.
Carrols will focus on growth in the Finnish market. In Finland,
the number of the Carrols restaurants will grow to 100 within a
few years, from the present number of 71 restaurants.