The Epicenter K Group, which has been actively developing agricultural business in the past two years, plans to build a silo with a capacity of 100,000 tonnes in 2018 on the territory of an oil depot acquired from Galnaftogaz Concern, the press service of the group has reported.
According to a posting on the website of the Antimonopoly Committee of Ukraine, on May 14, 2018 the committee permitted Epicenter K to buy the oil depot belonged to Galnaftogaz Concern (both based in Kyiv).
The press service of Epicenter K said that the group since 2015 has started investing in agriculture and in two years it boosted its land bank to 110,000 ha.
“In the conditions of the development of the agrarian business, the question arose for us to quickly and substantially increase the capacities of existing ones and build new modern silos. That is why we entered into agreements with PJSC Concern Galnaftogaz on the acquisition of the property complex of the oil depot located at 80, Pryvokzalna Street, Vendychany, Mohyliov-Podilsky district, Vinnytsia region,” the press service said.
The owner of the depot complex did not use for more than 10 years, and the concern did not plan to resume its work.
At the same time, the issue of trade in oil products by the founders of the Epicenter K is not currently being studied and is not being considered.
Epicenter K LLC was established in 2003. Its first construction materials hypermarket was opened in Kyiv in December of the same year.
The Epicenter K Group, which was developing agricultural business under the Epicenter Agro brand in the past two years, plans to build two silos in Vapniarka and Vendychany (Vinnytsia region) with a grain storage capacity of 120,000 and 100,000 tonnes. “Five of our silos have a storage capacity of 360,000 tonnes, which is not enough for us. We will build a silo in Vinnytsia region with a capacity of 120,000 tonnes and in the town of Vendychany – 100,000 tonnes of grain, expand the Vinnytsia and Zakupne silos,” General Director of Epicenter K Petro Mykhailishyn said at a press conference devoted to the development strategy of Epicenter K in the Ukrainian agrarian market on Tuesday.
In addition, the group plans to invest in the purchase of three routes (one route consists of 50-60 grain wagons) in 2019 to provide access to the port elevators.
In the future, the group is planning the construction of a near port elevator.
The new agroholding with 110,000 hectares of land cultivates four main types of crops: winter wheat, sunflower, corn and winter rapeseed. In the crop rotation, corn occupies up to 50%, winter wheat – up to 25% depending on the region, sunflower – up to 25%, rapeseeds have a small share and it is grown mainly in the western region of the country. Epicenter Agro also has 6,000 pigs.
“We use loans to replenish working capital, purchase goods, and we send the funds that trade generates to agribusiness. We plan that agribusiness will come to self-sufficiency and profit-making in no more than two years,” the director general said. According to Mykhailishyn, in the village of Kalynivka (Kyiv region), a factory for production of ceramic tiles with an annual capacity of 12 million square meters is under construction.