Kazakhstan Kagazy plc (the "Company"/the "Group") is delighted to announce that Astana Contract's subsidiary Paragon Developments Limited ("Paragon") has entered into a five year contract with Avon Cosmetic (Kazakhstan) Limited LLP to occupy over 5,000m2 of space at Paragon, the Group's A class warehouse facility located in Almaty.
The space taken by Avon represents around 10% of the total space available at Paragon. Following the agreement with Avon, Paragon will be 61% occupied, compared with 23% at the beginning of 2010.
Other major new customers in 2010 include "Rykom - Kaz" LLP (the sole authorized distributor of Mitsubishi Motors vehicles in Kazakhstan) and Wrigley Kazakhstan both of which use a wide range of our outsourcing services.
Yermek Mubarakov, Head of the Group's Logistics Business said:
"I am delighted to be able to announce our agreement with Avon. We have made great strides in 2010 and the deal with Avon is another step in our quest to occupy fully our warehousing facility. Not only are we filling the warehouse but we are seeking to provide an ever higher level of higher added value services to our clients to ensure that we maximize the potential of our facilities. We are in the final stages of negotiation with a number of other prestige clients and I hope to be able to make further announcements in the near future"
David Facey, Partner, SP Angel Corporate Finance LLP, financial advisers to the Company said
"Paragon has far exceeded our expectations for 2010. The success of the Group's logistics and paper operations in 2010 support fully the efforts being made by the Group to restructure the terms of its loans and bonds. We are delighted with the terms of our agreement with Avon.
Reference:
Astana Contract owns a full service container terminal which is located 1.8 kilometers from Almaty-1 railway station and near Almaty International Airport, with a processing capacity of 60,000 containers per annum and 50,000m2 of A Class warehouse space. .
Reference:
Avon is a leading global beauty company, with over $10 billion in annual revenue. As the world's largest direct seller, Avon markets to women in more than 100 countries through 6.2 million independent Avon Sales Representatives. Avon's product line includes beauty products, as well as fashion and home products, and features such well-recognized brand names as Avon Color, Anew, Skin-So-Soft, Advance Techniques, Avon Naturals.
Contacts:
SP Angel Corporate Finance LLP
David Facey +7 727 244 87 87
Kazakhstan Kagazy JSC
Aida Yelgeldiyeva +7 727 244 87 87
Kazakhstan Kagazy JSC
Nellya Kim
Press centre +7 727 244 87 96
