Abba Seafood divesting in Germany and Denmark

Date:Man, 2/9 1996 Orkla

Abba Seafood, part of Orkla's food operations, is selling its entire German operation. At the same time the company is selling its factories in Løgstør and Fredrikshavn, Denmark. The sale is one of several measures to improve profitability.

The new owners, Larsen af Danmark, will take over responsibility for the 220 employees in the companies concerned. The reason for the sale is recent years' weak profitability for Abba Seafood in Germany and parts of the Danish operation. The takeover took place on 1 September 1996. Abba Seafoods' strategy now involves increased focus on core operations in the Nordic countries, more emphasis on product development and rationalising production. This will improve long-term profitability. Most of the company's production will now take place in Kungshamn, Sweden. In Denmark, Abba Seafood will retain its own sales company and certain products from the Løgstør and Fredrikshavn factories will continue to be included in the product range. Sales of the company's products on the German market will take place through Larsen af Danmark, who will be Abba Seafood's agent.

The sale is in accordance with previously published restructuring plans and provisions.

In 1995, Abba Seafood's operating revenues were SEK 1,745 million. In conjunction with previous measures, the sale of the German operation and the factories in Denmark will reduce annual operating revenues to approximately SEK 1,425.

Director Information Lisbeth Lindberg, tel.: +47 22 50 10 80, 2 September 1996

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