The Polish Ministry of Finance has approved an agreement concerning the privatisation of the state-owned company ZPOW Kotlin.
A new company, Kotlin Sp. z o.o, will be established in the near future in which Orkla Foods will own a 65% interest during the initial phase. This will be achieved by Orkla Foods investing USD 11.8 million in the company (capital and equipment). Most of the remaining shares, for which Orkla Foods has a purchase option, will be owned by the Polish State. In 1996, the company, which operates at a profit, had operating revenues of approximately NOK 130 million and 650 employees.
Stabburet Polska, which is currently part of Orkla Foods, will change its name to Abba Seafood Polska Sp. z o.o. This Company, which will produce, import and distribute seafood, is wholly owned by Orkla Foods. Kotlin will take over the remainder of Stabburet Polska's activities, and will therefore produce and market frozen pizza, ketchup, jam and canned vegetables. Kotlin will also be responsible for Frionor's products in Poland.
Aggregate annual operating revenues for Kotlin and Abba Seafood Sp. z o.o will total just under NOK 200 million. Kotlin will be included in Orkla Foods' accounts from 1 May 1997.