|
EBRD supports Chumak expansion
A $26 million financing for a leading food producer
The European Bank for Reconstruction and Development is providing a $16
million long term loan and a $10 million working capital loan to Chumak, a
leading food company producing ketchup, tomato paste, mayonnaise, sauces and
bottled sunflower oil in Ukraine. The long term loan will finance the
expansion of warehousing and production capacities and purchase of
state-of-the-art packaging equipment. The loan will also support further
Chumak brand development and expansion of the product assortment, as well as
finance the working capital necessary to support growth in sales.
Chumak procures most of its raw materials from local farmers in the Kherson
region and the increase in production capacity will mean that the number of
suppliers as well as the volumes of seasonal vegetables bought by Chumak will
be increased securing a stable demand for local farms.
Hans Christian Jacobsen, Director of Agribusiness Team at EBRD, stressed the
importance of the continued co-operation with Chumak in this second
transaction between the parties. Through the introduction of new high-quality
tomato based and other products and innovative solutions as well as the
expansion of the range of branded products Chumak is expected to intensify
competition in the sector, he said.
Carl Sturen, Managing Director of Chumak, said the company appreciates the
opportunity to continue its successful partnership with EBRD. Chumak is
experiencing tremendous growth on the Ukrainian market, and this, in addition
to extensive renovation plans and the overall potential on export markets,
requires significant investments in the near future.
Chumak is one of the most well known Ukrainian brands and will celebrate its
10 year anniversary in 2006. The company has three manufacturing plants in
Kherson region, employing over 1500 people year round reaching close to 100
000 tons of output to a value of $80 million in 2005.
The EBRD is the largest investor in the agribusiness sector across its 27
countries of operations, with more than 250 investments worth around €4
billion. As at the end of November 2005 the EBRD’s cumulative investment in
Ukraine stood at €2 billion through 74 projects.
|
