Aspo's subsidiary ESL Shipping Ltd and JIT-Trans Ltd of the Rautaruukki Group have signed a long-term agreement covering the marine transport of the Rautaruukki Group's raw materials in the Baltic Sea area from the beginning of 2004. The parties released a letter of intent in July.
"This agreement will increase the net sales of the Shipping Division by approximately EUR 20 million in 2004, and it will have a positive impact on the Group's cash flow and profits", says Aspo's CEO Gustav Nyberg. "We have also made a deal with the Swedish company, SSAB, on shipments worth EUR 4 million in 2004 in connection with this agreement."
According to the agreement the JIT-Trans fleet consisting of five 13,500 ton barges and two push-tugs will be transferred to ESL Shipping in December 2003 for approximately EUR 23 million. The purchase will be cash and loan financed. The crew of the push barge fleet and the land personnel will be offered the option transferring to ESL Shipping.
The raw materials transported yearly consist of an estimated total amount of 5 million tons of iron ore and pellets, limestone and coal.
ESL Shipping transports dry bulk cargo mainly in the Baltic Sea area. In 2002 the company shipped about 7,4 million tons of cargoes and its net sales totaled EUR 43.1 million. At present, the company's fleet comprises six dry bulk freighters and three barges. The company employed a total of 212 people as of September.
ASPO Plc
Gustav Nyberg
CEO
For more information contact:
Gustav Nyberg, CEO of Aspo Plc, +358 9 7595 256, +358 40 503 6420
gustav.nyberg@aspo.fi
Eerik Yrjölä, CEO of ESL Shipping Ltd, +358 9 7595 781,
+358 50 357 9099
eerik.yrjola@eslshipping.fi
Distribution:
Helsinki Stock Exchange
The media
www.aspo.fi