Information about the building of a deep-freeze warehouse

our company has developed in a very positive direction. The reconstruction of our plant in 2003 has proved to be a move in the right direction. The same goes for all of the investments that have flowed into the processing and packaging plants since that time.

In order to be able to continue to grow in the leading position in the European market, we are presently putting into action a very ambitious investment project and with this are implementing two more modules from the master plan that had already been developed by our architect in 2002.

After a planning period of about two months, we have given out a contract for a plant expansion of 600m² (Master Plan – Module 2B) covering 2 floors and the building of a deep-freeze warehouse with high rise racks (Master Plan Module 1A) with a capital expenditure of 2.7 million Euros in December 2009. The investment target is to shorten a few links in the supply chain. As a result, we will not only be faster but will also be able to reduce costs of logistics noticeably. We will also be able to step up the efficiency in the production. Due to the capacity of our new warehouse, we will be able to produce larger batches resulting, among other things, in lowering set-up times and production waste therefore realizing further cost savings.

One storage rack vehicle robot carries 4,000 pallets back and forth, a second one carries out production orders to up to ten trucks. This way we can lower the loading time of the vehicles down to about 15 minutes. The technique is configured in such a way that we can work about 36 hours without the robot. Therefore we can reduce the contingency risk considerably.

The building requires a height of about 30 metres and as a result will rise above the present workshop by a factor of 3.5. Additionally, we are expanding, as described, the ground floor and first floor of the plant’s surface area by 600 m².

The start of construction was in April, the completion is planned for August; after October 2010 the operation can then start-up.

Furthermore, we are looking forward to do business with you. On this note, I would like to send you my

Best regards,

Stephan Keck