KiMs and OLW join forces
The name of the new company is Scandinavian Snack Company (SSC). The company will consist of KiMs Danmark, KiMs Norge and OLW Snacks in Sweden.
SSC will be a leading snacks company in the Nordic region. With Chips Abps Finnish and Baltic snacks operations it will have the resources needed for further expansion outside this region.
We have entered into this agreement because we believe that it is the right move to make within the context of the industry, and because we believe that both parties stand to gain from it. The most important advantage of the agreement is that it gives us Nordic market coverage. It will in addition generate purchasing and product development synergies and reduce the need for new production investments, explains Managing Director Finn Jebsen, head of Orklas branded consumer goods area.
The board of directors of SSC will comprise five members, three of whom will be appointed by Chips Abp and two by Orkla. Up until 2002, SSC will be headed by Sture Carlson, Managing Director of Chips Abp, who will act as executive chairman of the board.
The new company will be Finnish, and its formal headquarters will be located in Åland. The agreement is subject to approval by the Norwegian Ministry of Trade.
Orkla will continue to own its 19.8 per cent of the shares of Chips Abp.