UMG Investments, which combines the mineral extraction and processing assets of SCM financial and industrial group, has acquired a minor stake in Feednova, which is implementing a project to build a plant for the production of high protein feed additives and animal fat in Busk (Lviv region), according to a Feednova press release.
“We, as a local investor, understand that without new projects, without creating jobs and supporting business processes in portfolio companies, there will be no rapid economic recovery after overcoming the pandemic. We keep moving along all the previously agreed investment projects, and we are glad that our investment in Feednova helps create the first independent livestock by-product processing operator in Ukraine,” UMG Investments CEO Andriy Horokhov said.
Feednova said the financial details of this agreement were not disclosed.
Feednova is expected to process raw materials from external suppliers to produce feed additives and animal fat for farm and domestic animals. It is planned that the complex will have four production lines and five boilers (Mavitec, the Netherlands) with a capacity of more than 220 tonnes of raw materials and 90 tonnes of finished products per day. It is expected that up to 100 jobs will be created.
UMG Investments is an investment company with a focus on developing business in the raw materials and processing sectors. It was founded in 2006 by SCM Group. UMG Investments manages portfolio companies in the following sectors: mining, management of by-products and industrial waste, industrial goods and services. The market value of the assets managed by the company exceeds $500 million.
Kormotech LLC (Lviv region), a large Ukrainian manufacturer of cat and dog feed, has made the first shipments of cat feed under a private label to the UK and Finland.
According to the press service of the company, 19 tonnes of dry cat feed were delivered to the UK and 5,000 tonnes to Finland. The company plans to supply wet feed to Britain, which makes up 75% of the feed market in this country, and export products under its own trademark to these countries after obtaining the necessary certification.
“Northern Europe has a very developed market, and the largest share in this market belongs to super premium feeds. The UK is among the ten most powerful pet food markets in the world. Our goal is to enter the top 50 industry leaders in the world by 2023. Now our product exports account for about 15%, and we need to triple this figure to achieve our goal,” Ihor Paraniak, the production director of Kormotech, said.
The company planned in 2019 to make the first private label shipments to the UK and Finland, as well as to enter U.S. retail chains (now products are sold through Amazon in this country).
Kormotech exports products to over 20 countries, including France, Estonia, the Netherlands, Slovenia, and Poland.
