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- Release Date: 23/08/13 17:03
- Summary: GENERAL: FSF: COMMITTED TO SRI LANKA DESPITE TEMP SUSPENSION OF OPERATION
- Price Sensitive: No
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FSF
23/08/2013 15:03
GENERAL
REL: 1503 HRS Fonterra Shareholders' Fund (NS)
GENERAL: FSF: COMMITTED TO SRI LANKA DESPITE TEMP SUSPENSION OF OPERATION
FONTERRA REMAINS COMMITTED TO SRI LANKA DESPITE TEMPORARY SUSPENSION OF
CONSUMER OPERATIONS
Fonterra Co-operative Group Limited has today taken the precautionary step of
temporarily suspending its consumer operations in Sri Lanka because of the
unstable situation at the moment.
Chief Executive Theo Spierings said Fonterra has two immediate priorities:
protecting its people, and protecting its farmer shareholders' assets.
"The temporary suspension is the right thing to do. It is a precautionary
measure to ensure our 755 people working there are safe. We have closed our
plants and office in Sri Lanka, and have asked our people to stay at home.
"At the same time, we must do all that we can to protect our farmer
shareholders' investment in Fonterra's Sri Lanka manufacturing and commercial
operations."
Mr Spierings said Fonterra has provided every possible assurance to the Sri
Lankan authorities about the safety and quality of Fonterra's products, and
remains committed to the Sri Lankan people.
"Recent events, however, have made it difficult to maintain day-to-day
operations, and we need to get them resolved.
"Fonterra Sri Lanka is currently subject to a court Enjoining Order which has
shut down our ability to sell product, advertise it or make public statements
in any way with customers or consumers in Sri Lanka.
"Legal action is underway that is aimed at resolving the Enjoining Order.
"We are also working with Sri Lankan and New Zealand government authorities
on a long-term sustainable solution for our Sri Lankan customers, communities
and dairy sector," said Mr Spierings.
Sri Lanka is one of the key markets for the New Zealand dairy industry. The
New Zealand dairy industry has been providing high quality dairy nutrition to
people across Sri Lanka for more than 35 years.
Fonterra also plays an important role in helping develop the local dairy
industry. Earlier this year the Co-operative launched a Farmer Training and
Education Programme to help develop dairy farming skills in Sri Lanka.
End CA:00240137 For:FSF Type:GENERAL Time:2013-08-23 15:03:47
