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Notwithstanding gloomy market conditions, Frigoscandia continues to grow in Europe.

Notwithstanding Gloomy Market Conditions, Frigoscandia Continues to Grow in Europe

Diminishing intervention stocks and the expected structural changes that will follow the creation of the European Single Market after 1992 are two major issues that concern the continental cold storage industry today. That is how Arvid Gierow, president of the Helsingborg, Sweden-headquartered Frigoscandia Group, sees things.

"We can look back on a year that resulted in further growth in sales and profit in spite of the generally gloomy market for cold storage," he said. "Reduced subsidies to agriculture, coupled with stricter rules for intervention buying, will further limit the availability of bulk products. This will particularly affect cold stores which are not located on the main routes, as well as those unable to serve a more sophisticated product and information flow."

The dropping of cross-border tariffs and the deregulation of the intra-country transport industry will increase the European trade in chilled as well as in frozen products. This in turn means new logistic considerations, both with regard to food manufacturing and distribution.

The "just-in-time" concept is also gaining ground, which in the international arena means that cold stores in the manufacturing end together with strategically-situated distribution centers are likely to be the ultimate winners.

The majority of Frigoscandia's warehouse and transportation services are within EEC countries. As a logical step to reinforce European service, at the end of last year the leading Danish refrigerated warehouse company, Cold Stores, was purchased from the Danish brewery Carlsberg. The acquisition brought into the Frigoscandia Group approximately 200,000 cubic meters in seven cold stores. Six facilities are based in Jutland, regarded as one of the best agricultural areas in Europe. The deal also made for a well consolidated national and international transport operation resulting in the availability of complete national coverage from Frigoscandia, as well as extended international service to the Danish food industry.

Back home in Sweden, the company has also been busy. "We recently concluded some interesting package deals where our customers have benefitted from food technology know-how and the possibility of combining equipment with cold storage and transport services," said Gierow.
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Title Annotation:Warehousing World
Publication:Quick Frozen Foods International
Date:Apr 1, 1989
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