The State Property Fund (SPF) of Ukraine has put up for auction on May 7 with an initial price of UAH 187.64 million a single property complex of the state-owned enterprise Dunaivtsi grain processing factory (Dunaivtsi village, Khmelnytsky region), which will become the first privatized state asset in the grain processing industry, the fund said on its website on Wednesday.
According to the fund, earlier, such plants were one of the key links in the agricultural monopoly controlled by the state, but with the transition to a free market, this asset became non-core for the state.
The SPF noted that most of the plants cannot be called successful, but these assets have excellent investment potential, since they were created as production sites in profitable locations and with a developed logistics infrastructure. The enterprises have powerful elevators and access to railways, as well as developed capacities for storage or transshipment of products.
The fund said that the privatization of grain processing factories is beneficial for all participants in the process: the state fills the budget and receives a revival of economic activity, investors – assets important for business development, and local communities – jobs and development of territories.
Dunaivtsi grain processing factory is engaged in the production of products of the flour and cereal industry and feed for animals kept on farms, wholesale trade in grain, unprocessed tobacco, seeds and animal feed.
The fund noted that the asset consists of buildings and structures with a total area of 79,800 square meters, including an administrative building, a canteen, bakeries, elevators, a mill, a laboratory, warehouses, workshops, garages and other outbuildings. The total area of the enterprise’s land plots is 67.3 hectares, on which there is the necessary technological equipment and communications: water supply, electricity, sewerage and access roads.
The plant in 2020 reduced its net profit by 14.2% compared to 2019, to UAH 2.26 million, its assets increased 2.4 times, to UAH 193.66 million, and total accounts receivable decreased by 16.9%, to UAH 20.24 million.
