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EBRD invests in Ukrainian sunflower oil extraction plant
A US$ 8.5 million (ECU 6.43 million) equity investment from the European Bank for Reconstruction and Development (EBRD), signed last week, will allow one of Ukraine’s best managed sunflower oil extraction companies, Dniepropetrovsk Oil Extraction Plant, to expand its production and increase its exports, especially to Russia.
Jacques de Larosière, President of the EBRD, said: “Agribusiness generally and the edible oils industry in particular, are a top priority for the Ukraine. This sector has strong market potential, both domestically and abroad. By financing projects in this sector, the EBRD will help strengthen Ukraine’s competitiveness and act as a catalyst to further investment in a key export industry. "
Alexandr Zhurid, Director of DOEP and Chairman of the Board of Directors, said: “The EBRD's investment will enable us to develop our products and markets much more effectively than would otherwise have been possible. In addition, the investment will ensure that the plant can meet the highest local and international environmental standards".
Proceeds of the investment will finance the construction of an edible oil refinery and bottling plant, improve the environment and provide working capital. This will allow DOEP, which is widely recognised as a well managed and efficient oil mill, to process 50 per cent of its current production of crude oil into refined oil and sell it in modern consumer packaging. The new plant will complement the existing edible oil extraction facility which has a capacity of 240,000 tonnes of sunflower seed per year, representing 12.5% per cent of Ukraine's crushing capacity, and a crude oil capacity of 110,000 tonnes per year.
DOEP, located in the Dniepr river port area of Dniepropetrovsk, 500km south of Kiev, was the first fully privatised edible oil processing plants in Ukraine. In July 1994, Ilta Holding S.A., a Swiss holding company active in edible oil seed of Ukraine since 1990, invested US$ 5 million in DOEP. This investment by Ilta confirmed their commitment to the edible oil seed sector in Ukraine and Ilta was subsequently instrumental in attracting the investment of the EBRD.
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