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.
Mover Mill LLC has launched a plant for processing grain in the village of Kryvi Kolina, Cherkasy region. According to the press service of Cherkasy Regional State Administration, the capacity of the plant is 350 tonтуs of flour per day, it also produces semolina and bran. The products are sold under the Pershy Mlyn brand.
The cost of investments in the plant is about UAH 100 million.
According to Deputy Minister of Agrarian Policy and Food Viktor Sheremeta, this company is currently one of the largest potential exporters of flour.
According to data from the state register of legal entities and individual entrepreneurs, Mover Mill LLC was registered in 2016. Its owner is Volodymyr Movchan. Its statutory capital is UAH 5 million.
Canada’s Black Iron with assets in Ukraine has received a formal proposal from Ukraine’s government to lease to the company a plot of land connected to the Shymanivske iron ore project, the company has said in a press release. “The company has received a formal proposal from Ukraine’s government to lease to the company a plot of land connected to the company’s Shymanivske iron ore body for the location of the project’s processing plant, tailings and waste rock,” the company said.
The company said that this marks a significant milestone in the project’s development and further demonstrates Ukraine governmental support for the mine to be constructed.
The parcel of land being proposed is owned by Ukraine’s central government and is currently being used by the Ministry of Defense (MOD) for training purposes.
“Black Iron management is currently analyzing the suitability of this land from a social and technical standpoint. To secure rights to this land, Black Iron needs to agree on a compensation package with the MOD and Ukraine’s central government that is sensible for all parties. Discussions of this nature have already started with senior government officials including Deputy Prime Minister Kubiv with support from Canada’s Embassy to Ukraine,” the company said.
As reported, the Shymanivske project contains a NI 43-101 compliant resource estimated to be 646 Mt Measured and Indicated mineral resources, consisting of 355 Mt Measured mineral resources grading 31.6% total iron and 18.8% magnetic iron, and Indicated mineral resources of 290 Mt grading 31.1% total iron and 17.9% magnetic iron, using a cut-off grade of 10% magnetic iron. Additionally, the Shymanivske project contains 188 Mt of Inferred mineral resources grading 30.1% total iron and 18.4% magnetic iron.