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EBRD acquires a 17.5% stake in Shostka
The European Bank for Reconstruction and Development is undertaking to acquire 17.5 per cent in one of the largest cheese producers in Ukraine, OJSC Shostka City Milk Factory (“Shostka”), which is owned by the French Groupe Bel, one of the world’s leading branded cheese manufacturers.
The EBRD equity investment will be used to finance Shostka’s investment programme, which includes among others the modernisation of the factory and the increase in production capacity.
In parallel to this project, The EBRD is also planning to engage technical assistance to conduct a consulting project, aiming at reducing milk production seasonality and increasing milk quality by encouraging farmers to share milking facilities.
According to Gilles Mettetal, EBRD Director for Agribusiness, Shostka’s development will require an increased amount of collected milk, and therefore should bring regular cash and dairy farm support services to rural areas. He also noted that the project will help Shostka introduce new products in the market, providing customers with a wider range of cheeses responding to the highest hygienic and quality standards, and increasing global competition.
The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of the end of November 2007, it has committed over €3 billion through more than 155 projects.
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