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Aviko to build factory in China

20 March 2007

Aviko, a member of Royal Cosun, has signed a partnership agreement with the authorities of Zhangye City and Minle County to invest in a potato processing factory in the Chinese province of Gansu. 
 
A new potato processing factory will be built on an industrial estate in the direct vicinity of a major potato growing area. It will initially produce dried potato products such as potato flakes and granules. During the first phase, the plant’s processing capacity will be about 80,000 tonnes per annum.
 
Aviko intends to build and strengthen its position in Asia, especially in China, in the years ahead. There are many opportunities for potato products in this rapidly growing market.
 
The Zhangye and Minle County authorities will actively support this investment by increasing the area under potato cultivation, investing in intensive cultivation assistance and developing specific potato varieties. The Chinese partner will also finance construction of a 35,000-tonne potato store.
 
The total investment on a 60-hectare site will cost about EUR 15 million. Construction, fitting, operation and management of the business, in which Aviko will hold a majority interest, will be under Dutch leadership.
 
A start has already been made on the construction of the potato store and construction of the other buildings for production, product storage and the like will start at the end of March. The factory will be taken into operation in early 2008.
 
Steenderen, 20 March 2007
 
 
For further information:
 
Aviko
Wim Gerritsen
Tel. +31 575 458200
Email: w.gerritsen@aviko.nl