Chumak II

Location:

Ukraine

Project number:

36306

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

15 Nov 2005

Status:

Completed

PSD disclosed:

14 Oct 2005

Project Description

The proposed Project comprises the expansion of the Company’s production facilities and purchase of new equipment, the introduction of innovative packaging solutions and financing of the working capital needs in relation to increasing operations.

Transition Impact

The transition impact potential for this investment remains substantial:

  • The project will enhance backward linkages through the local agricultural supply chain as most of the companies raw materials are sourced from the agricultural sector in southern Ukraine. The Company will assist the local farming community with machinery training and technical assistance as well as with negotiations with input suppliers.
     
  • Through introducing new high-quality value added products, efficient packaging, labelling and innovative solutions, the Company will further expand the existing markets for tomato and oil based products and bring substantial development to the emerging markets of condiment and cooking sauces. The improved technology and higher efficiencies will increase the competition in the sector

The Client

Chumak is a leading food processor located in southern Ukraine, is involved in the production of tomato paste based products, edible oil, mayonnaise, pickled and canned vegetables and is an owner of the brand names “Chumak” and “Daryna”.

EBRD Finance

USD 16.0 million term loan and USD 10.0 million revolving credit line.

Project Cost

Up to USD 77.0 million.

Environmental Impact

The project is screened B/1 requiring an environmental audit and analysis of the facilities and the proposed expansion plans. These studies will be undertaken by independent consultants and any necessary remedial actions will be structured into an environmental action plan to be agreed with the Company. The Company will be required to comply with both national and EU standards for environment, health and safety and provide the Bank with an annual environmental report on any environmental action taken in the year. Following completion of the studies this PSD will be updated to reflect the findings.

Technical Cooperation

None.

Company Contact

Carl Sturen , President

Kozatska str. 3,
Kahovka Cherson Reg.,
74800 Ukraine

Tel. +38 0552 326 000

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

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Text of the PIP

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