KOMETOS CUSTOMER MAGAZINE

A NEWstRAtEGY

Co-operation and competence provide the basis for

KomEtos boosts RussiA’s GRoWiNG food iNdustRY

Kometos to establish a Europe-wide sales

organisation

p. 3

KOMETOS magazine 5

Distribution: 1,000 Editing and pictures: Kometos Oy

Kometos OyP.O.BOX 97 FI-61801 KAUHAJOKItel. +358 20 757 1400fax +358 20 757 1401mailbox@kometos.comwww.kometos.com

Business ID FI08341723

CONTENTS3 A word from the board of directorsKometos aims to double its turnover every three years.

4 Kometos’ international sales team

5 Lapin Liha – listening to the customer led to innovation

6 Seafood culture in Norwegian fjordsRed king crabs are cultured in innovative production modules developed by Kometos.

8 Highly valued finnish expertiseThe Russian meat industry uses Kometos’ expertise throughout the production process.

10 News from around the world

11 Kometos on the move

The Norwegian company Bugöynes Kongekrabbe produces about 700 tons of seafood per year. Read more on page 6.

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A word from the board of directors

KOMETOS INCREASES ITS PRESENCE IN EUROPE

Kometos is doing well. Despite the turbulence in the world, demand for Kometos solutions has increased as planned. The company’s ability to respond to customers’ emerging needs and successfully deliver projects time after time have played an important role. Kometos is going to invest even more in this.

During the spring and early summer, the Board of Directors worked on the company’s new growth strategy. The most important strategic change to the annually updated three-year plan was the decision to create Kometos’ own Europe-wide sales organisation over the next three or four years. The export organisation will be expanded each year. The first offices are located in Belgium, Russia, Ukraine and Hungary.

The plan is to start three country-specific sales organisations each year. With this change, the company seeks a stronger presence

in customers’ daily operations and, consequently, a role as an established provider of solutions. At the same time, regional co-ordination of maintenance becomes easier. The company wants to continue the good co-operation with its partner in the German market. Therefore, collaboration with EMIL MÜLLER KG will continue as before.

Kometos’ future strategy is to be an even stronger supplier of solutions instead of supplying individual machines or being an agent for them. The company’s capacity to deliver production lines to all the stages of the food production chain makes Kometos a reliable and flexible partner in the ever-changing food production value chain. At the same time, Kometos is aiming for the goal of doubling its turnover every three years.

Kometos’ future strategy is to be an even stronger supplier of solutions instead of supplying individual machines or being an agent for them.”

”

Dmitri YermolayevRegional Sales Manager for Ukraine

Ari KormiRegional Sales Manager for Hungary

Mikhail CherniavskyRegional Sales Manager for Russia

”I started at Kometos in June this year. My job in-cludes selling and marketing Kometos products in Ukraine.”

”It’s important for me to be in daily contact with customers. It’s great to find that every day is different. The most rewarding part of my job is being able to provide customers with the products they want. It’s a great motivator.”

”My co-operation with Kometos be-gan when Kometos joined an ex-port network group formed by four Finnish companies. I’m responsible for establishing new customer rela-tionships and maintaining existing ones in this export region.”

“In this export market, mediocrity will not get you anywhere. The parent company’s active role, efficient communication channels and clearly specified joint goals are important elements of success. We offer our customers a product portfolio that is always delivered at the right time.”

“My family consists of my Hungarian wife and two grown children and grandchildren. We also have a dog. In my leisure time, I enjoy going to the spa, reading and gardening.”

”My job is to organise the marketing and sales of Kometos products, draft development ideas and supervise the delivery of maintenance services and spare parts.”

“In addition to working indepen-dently and always being on the move, you must be resourceful, have a broad education, know the industry, the technology and contract law and know how to establish confidential relations with people. Smooth co-operation with our stakeholders guarantees our success.”

“I spend my leisure time with my family. I also read, watch new movies and enjoy physical exercise. Because my job covers a geographically large area, I have had the opportunity to travel a lot in Russia and abroad. I have spent holidays, hunted and fished in some rather exotic places.”

AT WORK

AT WORK

AT WORK

”I have a wife and a daughter, who is studying economics and business administration at the university. If there is any time left after work and family, I enjoy reading books.”

OFF DUTY

OFF DUTY OFF DUTY

sALEs tEAmTHE INTERNATIONAl

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since 2007, Kometos’ Technical Director timo Pirilä has been developing a new kind of thawing equipment. His project has gained momentum after finding out that Kometos’ customer Lapin Liha needed the equipment for its own process. Systematic product development of the thawing equipment has continued since the end of 2011. The first step was to develop stepless control of air velocity for an energy-efficient fan. The idea was to improve the efficiency of air circulation by changing the direction of the air flow. A control system that optimises energy consumption was added to the system. The motors use state-of-the-art EC technology. They meet the future motor standards, and their operating efficiency is 20 per cent better compared with conventional motors.

The equipment uses waste heat recovered at the production plant for thawing. The fan control optimises the energy need of the thawing process. Electrical energy costs have fallen to ten percent of the costs of a conventional solution. The new thawing equipment works with any heating and cooling system. The equipment is a so-called medium-based solution, where steam or hot water (depending on the customer’s system) works as a medium for the recovery of waste heat.

This thawing equipment is so new that it does not yet have a product name. The product development resulted in a highly energy-efficient solution that adapts to customers’ needs.

Mikhail CherniavskyRegional Sales Manager for Russia

ListENiNG totHE customER LEd to iNNovAtioNcontinuous product development is one of the cornerstones that an ambitious and growth-hungry company stands on. impulses for continuous development come from customers and the ever-changing market.

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since the start of the company in 1996, Bugöynes Kongekrabbe has been located in Finnmark, Northern Norway, close to the Var-anger Peninsula. The company is well adapted to the rough natural conditions. Last year it be-came a subsidiary of Norway King Crab A.S.

Bugöynes Kongekrabbe produces seafood in Bugöynes in close co-operation with local fishermen. Throughout the year, the company produces cod, haddock, European catfish, redfish, tusk, Atlantic halibut and flounder. Sea-sonal specialties include lumpfish roe and wild Atlantic salmon. However, as the Norwegian name indicates, the main product of Bugöynes Kongekrabbe is the red king crab, which is mostly found in the Varanger fjord. The crab is well known for its large size and delicious flavour. One crab can weigh as much as eight to ten kilogrammes. Catching red king crab is a seasonal activity, but thanks to frozen and fresh storage it can be offered to clients all year round. The company has the capacity to store several thousands of kilogrammes of live crabs.

Bugöynes Kongekrabbe produces about 700 tons of seafood per year. Monthly produc-tion volumes vary from 100 to 300 tons. The company employs 2 to 20 people, depending on the season. During the red king crab season, two to five tons of the product are transported from the factory each week. During other sea-sons, products are regularly transported from the factory to the domestic and global markets. Products are exported to 16 countries in Asia, North America and Europe. Finland is one of the growing markets in Europe.

Challenging production process

The production of red king crab places special requirements on the production facilities.

– The crabs must be stored alive in salt water. Crab cooking develops a lot of mois-ture, which sets very high requirements for the production facility’s building material. In addition, seafood production facilities often

consist of several different units, which takes a lot of energy. Establishing such a produc-tion plant was very challenging and seemed to be beyond the limits of our budget. Then I met Raimo, and he made me think in a new way, explains the founder of the company, Öyvind seipäjärvi, current shareholder in Bugöynes Kongekrabben and a member of the company’s Board of Directors.

Bugöynes Kongekrabbe has been Kome-tos’ customer for the past 12 years. Öyvind says that when they were looking for a soluti-on for their production facilities, he found Ko-metos on the Internet. He contacted raimo

niemi, and finally the two met at a tiny three-table café at the Finnish–Norwegian border.

A positive surprise The production facilities were planned in close co-operation with Kometos. The de-velopment work was carried out together.

Kometos and the Norwegian company Bugöynes Kongekrabbe are long-time partners. Thanks to high-quality facilities, the production of fish and red king crabs is economical and energy-efficient.

sEAfood cuLtuRE iN NoRWEGiAN fjoRds

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Öyvind says that he is very satisfied with the collaboration with Kometos, and he is grateful for having been given the opportunity to work with the company.

– They are flexible, reliable and fast. Even though everything was well planned and we knew what the final result would be, I had some doubts about whether Kometos real-ly could meet the strict requirements of the production and the rough climate. It was amazing to see a caravan of seven Finnish trucks arrive at Bugöynes, carrying modules. The mechanics from Kometos assembled the modules in a month. The moment they wal-ked out the back door, our raw material was brought in through the front.

– I wasn’t the only one amazed – so were our clients, the authorities and food industry professionals. Even today, after twelve years, the walls are white and there is no rust in sight. Only the floors have been replaced once. The quality of the module material is very high, Öyvind says.

Business relationship deepened into friendship Kometos offered a solution that was adapted for a small company in accordance with the customer’s wishes. Great efficiency has been packed into a small space, which means en-ergy savings. In addition, the cost of the solu-tion offered by Kometos is only 25 percent of the cost of a conventional model. The produc-tion facilities are made up of modules which can be easily expanded when production increases.

– We have expanded our facilities many times to gain more space for fish and red king crab production: one module for fish culture, which must be fully isolated from the rest of our production, one module for freezing and one for the canteen. This would not have been possible without Kometos’ expertise, compe-tent customer service and regular commu-nication with us. Their after-sales service is

excellent. The team spirit is seen in their way of working. It is something unique that cannot be copied.

– I’m very happy to have found Kometos. Raimo visits us on a regular basis, and we go through all the business matters each year. Actually, our business relationship has developed into true friendship. Raimo men-tioned it in his speech at our company’s 10th anniversary party. We handle business mat-ters professionally, but outside that, there’s a special friendship between us. It is the result of a long, confidential business relationship, Öyvind says.

The mechanics from Kometos assembled the modules in a month. The moment they walked out the back door, our raw material was brought in through the front.”

”

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1ThE PUlKOvSKY GROUP: EFFICIENT PORKPRODUCTION

as a result of co-operation between Kometos and AgroHolding Pulkovsky, the pig farming company located in Northwest Russia has a leading position in the country.

The Pulkovsky Group specialises in the pork industry. The company’s roots go back to the production company Altair, founded by the company’s president ivan Kara. Soon after the founding of the Group, Ivan Kara made the bold decision to turn the company into a ‘financing platform’ for plans to start domestic meat production. The decision was supported by the governmental development programme for Russian agriculture. This was the beginning of the ambitious project to build Northwest Russia’s largest modern, vertically integrated group of pig farming companies that covers the entire service chain. By 2015, the production of the companies in the holding firm in the Leningrad, Novgorod and Pihkova oblasts is estimated to increase to 500,000 pigs per year. Thus, demand for pork in the area can be met with locally produced high-quality pork.

Kometos helps to increase productionIn order to build a modern, efficient pork production unit, Pulkovsky turned to Kometos, a Finnish food technology expert. The first step of the co-operation was the project launched by the Pulkovsky Group member Agroholding Ustvolmsky in the Krestetsky district, Novgorod oblast. The project involved building a pig breeding unit and fattening farm with an annual capacity of 62,000 pigs. In September this year, Kometos will deliver a unit with 22 modules and a slaughtering capacity of 35 pigs per hour to the Viny village in the Krestetsky district.

Co-operation with the customer’s technology team made it possible to take into account all the production requirements of Agroholding

Ustvolmsky and to ensure expansion capacity. State-of-the-art technology was used in the planning, and special software was developed for the production logistics.

High-standard, cost-efficient delivery project Kometos has been operating in the market for 20 years. During that time, the company has developed a high-

standard quality culture. In the Pulkovsky project, the unit was delivered five months after agreeing on its configuration. After the delivery, the assembly work took one month and the training and start-up took two weeks. Thus, the investment will start to pay for itself only seven months after the order.

Prior to the delivery, the facility was tested at the Kometos plant in Kauhajoki, Finland, with the customer’s representative present at the testing. The customer’s experts were trained in Finland in the special technology as well as the use and maintenance of the facility.

All the modules are always fully equipped with electricity, air conditioning, water distribution and sewer systems, cooling and heating units and any necessary production and packaging equipment, as well as automation and data acquisition.

The co-operation between Agroholding Pulkovsky and Kometos is an excellent example of a breakthrough in the vast Russian market with the help of high professional expertise.

Kometos has a strong presence in Russia’s growing meat industry market.

hiGhlY vAlUEDFiNNiSh ExPERTiSE

3in the northeast part of the Komi Republic, one of the northernmost areas of Russia, near the city of Inta, a reindeer slaughterhouse was opened early this year.

The Inta Pripoljarnaja company present in the area opened a modular plant built by Kometos, with a capacity of 160 reindeer during a shift.

The project at Inta satisfies the Komi consumers’ need for quality reindeer meat. In addition, it opens 40 new jobs for professionals in the Komi Republic’s job market.

After this, Inta Pripoljarnaja started to replace some of the technology at its production facilities in order to convert the facilities into a reindeer meat processing unit that manufactures semi-finished and by-products.

Inta Pripoljarnaja was very satisfied with the high technological standard and quality of the equipment delivered by Kometos. Recently, the company also purchased a thawing unit for the meat processing unit.

Customers who value Kometos’ quality concept – the continuous improvement of product qualities and services – keep coming back and choose Kometos products.

the agricultural conglomerate OOO Kashin lug is located in the Domanovo village in the Kashira district of the Tver oblast. It is engaged in animal feed production, beef cattle breeding and fishery.

Recently it purchased a SINA N5.4 module abattoir from Kometos that meets the EU requirements. The abattoir consists of four modules, with a slaughterhouse equipped with a facility for veterinary inspection, cooling units for half-carcasses and by-products, a cutting and packaging unit and any necessary technical and welfare facilities. The plant’s capacity is 16 to 20 animals per day.

This is the first time Kometos is delivering equipment to the heart of Russia, the Tver oblast. A new Kometos flag was pinned on the Russian map.

OOO KAShiN lUG: MANAGEMENT OF

THE BEEF PRODUCTION PROCESS

iNTA PRiPOljARNAjA: qUAlITyREINDEER MEAT TO CONSUMERS IN KOMI

2hiGhlY vAlUEDFiNNiSh ExPERTiSE

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News from around the world

AGROPRODMASH: 17th international food industry exhibition

From 8 to 12 October, Moscow will host the 17th international exhibition of food industry machinery, equipment and ingredients.

The AGROPRODMASH fair focuses on topical themes and state-of-the-art technology. During a falling economic trend, companies representing the industry are showing their capacity for competition in order to maintain and even strengthen their market positions.

AGROPRODMASH offers solutions that improve operating efficiency through modern technology at a reasonable price. These are exactly the solutions that are needed in current economic conditions.

AGROPRODMASH is the only Russian fair that has, since 1996, displayed all the areas of agricultural raw material processing, food production and sales.

In 2011, a total of 683 companies from 35 countries had a stand at the fair. Sixty percent of the exhibitors have participated at least four times.

Kometos has had a stand at each of the 16 fairs arranged so far. Last year the fair attracted more than 17,000 visitors. According to a survey, nearly half of them were particularly interested in meat, poultry and fish processing – an ideal target group for Kometos. During the event, hundreds of interested visitors will stop at the stand. The Agroprodmash Fair is a very important channel for Kometos for customer acquisition, because agents from Russia and other CIS countries also take their potential customers to the fair. In addition, the fair offers an excellent opportunity for demonstrating new product innovations.

read more at: www.agroprodmash-expo.ru/en

CONGRATUlATiONS,KUzbASS!Kometos’ customer, the Kuzbass food combine in Russia, celebrates its 15th anniversary this year.

Every customer is important for Kometos, and the company’s business is based on an individual approach. However, Kometos has customers who are even something more – they are friends.

The Kuzbass food combine is one of these friends. The successful co-operation started in 2004, when Kometos assembled a two-chamber meat thawing unit for them. Since then, the company has kept coming back to Kometos.

Today, the food combine is one of the leading companies in the food industry in Russia. Its customers include about four thousand companies in the trade sector in Siberia.

We wish the company the best of luck and success in its business and its mission to deliver a diverse range of high-quality meat products to consumers in the area.

Kometos participates in the iNdAGRA 2012 fair in bucharest, Romania, from 31 october to 4 November

Follow the fair ads: www.kometos.com

Kometos WebshoP has been enthusiastically received by our customers, and business in the Webshop has been lively. There are more than 350 registered users already, and their number is steadily growing.

Webshop marketing is based on intensive advertising through e-mail. This will continue, and there will be attractive new offers every month. The other products in the Webshop are also worth checking out.

take a look: www.kometoswebshop.com

KOMETOS WEBSHOP

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KOMETOS MOvESAT PORSChE SPEED

Kometos on the move

sPonsoring motor sPorts links speed, efficiency and preci-sion with Kometos. Being a sponsor to the Porsche GT3 Cup Trophy, arranged in Finland for the first time, has linked Kometos to one of the world’s most appreciated brands. The co-operation with Porsche gives customers and employees a strong signal of the quality and standard which Kometos associates itself with.

For Kometos, sponsorship has always also meant an opportunity to offer unique experiences to customers. CEO Raimo Niemi remem-bers well how they fulfilled a customer’s lifelong dream to ride in a rally racing car. A rally programme was tailored for the customer, which included taking a rally driver’s licence and co-driver training. Finally, the customer and Raimo Niemi together participated in the Jämsä Rally in Central Finland. The car, with the customer as the co-driver, came second. The winner was Juha Kankkunen!

Through sponsorship, Kometos has reinforced its visibility in the desired target groups, but it has also contributed to national and re-gional collective responsibility. For a long time, the company sponso-red Finnish speed skating on its way back to international success. This work was conducted in co-operation with Nokia, and it resulted in a new era of success for speed skating, after struggling at the bottom for more than a decade. Popular in Central Europe, the sport also gave Kometos the visibility it had sought in the export market.

Kometos will continue to improve its visibility and expand its net-works by sponsoring passionate, growth-oriented sports. The owner family is particularly fond of motor sports. Therefore, Kometos can be found among the names behind Finland’s longest racing car track to be built in the Kauhajoki area in 2013.

oona heikkilä has been playing Finnish baseball in the Kauhajoen

Karhu team for two years. Kometos sponsors the team, and we will

certainly hear more about its young players in the future.

sponsors

Kometos Oy P.o. box 97, fi-61801 KAuHAjoKi tel +358 20 757 1400

Results by know-how

Regular maintenance operations and periodic inspections are the best way to ensure the long-term operability of equipment. With a service agreement offered by Kometos, this will be easy and flexible. The expert service guaranteed by the maintenance agreement ensures the continuity of production operations and the long service life of the production equipment. Maintenance agreements also extend the guarantee periods for structures and process equipment.

www.kometos.com

COMPREhENSivEMANAGEMENT

TheKomeTosserviceconcepT

MAiNTENANCE OPERATiONS

SPARE PARTS NEEDS

ADDiTiONAl TRAiNiNG

SKill-RElATED NEEDS

PERiODiC iNSPECTiONS

ONliNE STORE

SURvEYS

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