The Swiss company Nestle has bought a 9.5% stake in PrJSC Volynholding (the Torchyn brand), the largest producer of ketchup, mayonnaise, sauces and seasonings.
According to a company report in the information disclosure system of the National Securities and Stock Market Commission, after the purchase, the share of Nestle in Volynholding became 100%.
According to the report dated September 13, 2018, the company decided to sell 1,900 previously purchased shares to Volynholding’s shareholder. This stake, owned by the company, was 9.5%.
The net income of Volynholding in 2017 amounted to UAH 1.3 billion (7.5% more), net profit some UAH 89.1 million (0.8% more). Information for 2018 is not yet available.
PrJSC Volynholding produces ketchup, mayonnaise, sauces, pickles, mustard, dressings and spices under the Torchyn brand.
Nestle in Ukraine and Moldova has more than 5,500 employees. The company in Ukraine has three production sites (in Kharkiv, Lviv, and Torchyn, Volyn region), as well as one of the five Nestle service centers in the world – Nestle Business Service (NBS Lviv).
Nestle, one of the world’s largest food producers, intends to invest about UAH 390 million in Ukraine in 2018, Nestle Director for Ukraine and Moldova Ansgar Bornemann has said. “In 2017 Nestle invested more than UAH 128 million in Ukraine. And investments were used in certain parts at each of the three factories. And in 2018 we plan to triple investments to UAH 390 million,” he told Interfax-Ukraine.
He said total sales in 2017 reached UAH 7 billion. “The most significant contribution to this figure was made by the culinary business (Torchyn and Mivina), confectionery products (Svitoch, Lion, KitKat) and beverages (Nescafe) .The business of baby food, animal feed, NestleProfessional, ready-to-eat breakfasts also demonstrated a significant growth,” he said, adding that in 2018 the company expects sales growth.
The company’s exports in 2017 increased by 10%. The company supplies goods to 17 countries, including Great Britain, Germany, Spain, Holland, Poland, France, Hungary, the Baltic States, Georgia, Armenia, and Azerbaijan. In addition, in small quantities the products are exported to the United States and Canada.
Nestle began operations in Ukraine in 1994. The Nestle business in Ukraine is represented by the following directions: coffee, drinks, confectionery goods, cooking (cold sauces, seasoning, soup), fast food products, baby and special meals, ready meals, and pet food.
Nestle, one of the world’s largest producers of food products, has invested more than UAH 10 million in energy efficiency projects in Ukraine, said CEO at Nestle Ukraine Ansgar Bornemann. “The company has invested more than UAH 10 million in 22 energy efficiency projects in Ukraine. This allowed 8% energy savings,” he said at a press conference in Kyiv on Wednesday. The top manager also reported on investing UAH 1 million in 12 projects to install special environmentally friendly equipment. “This allowed us to reduce water consumption by 189 tank wagons at the company’s three factories,” he said. Nestle began operations in Ukraine in 1994 with the opening of a representative office. It markets such international brands as Nescafe, Nesquik, Nuts, Friskies, KitKat, etc.
Nestle, one of the world’s largest producers of food, will invest UAH 700 million in the reconstruction and modernization of Mivina factory in Kharkiv. Nestle CEO for Ukraine and Moldova Ansgar Bornemann and Head of Kharkiv Regional State Administration Yulia Svetlychna said this during a press briefing in Kharkiv.
“The company began preparations for the modernization of Mivina factory in 2015. The final project plan was approved in early 2018. The main goal is to develop the factory, improve working conditions and increase the competitiveness of products,” the Nestle official said.
According to him, the project will be implemented in two stages by transforming the existing logistics center into a production facility with the subsequent development of all necessary infrastructure and transferring production lines to new premises.
“Reconstruction will help not only modernize the enterprise but also improve the technology of production. Updating the recipe for Mivina products, in particular reducing fat content in products, will allow meeting the criteria for assessing the nutrition foundation of Nestle products, which are based on dietary recommendations of the World Health Organization,” Bornemann noted. The head of the Kharkiv administration, in turn, reported that almost half of the products produced at the Kharkiv factory are exported to 17 countries in Europe and the world.
The company plans to complete all the stages of reconstruction and commission the updated enterprises by 2021.