Project description
and objectives:
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The proposed Project comprises the expansion of the Company’s production
facilities and purchase of new equipment, the introduction of innovative
packaging solutions and financing of the working capital needs in relation to
increasing operations.
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Transition impact:
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The transition impact potential for this investment remains substantial:
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The project will enhance backward linkages through the local agricultural
supply chain as most of the companies raw materials are sourced from the
agricultural sector in southern Ukraine. The Company will assist the local
farming community with machinery training and technical assistance as well as
with negotiations with input suppliers.
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Through introducing new high-quality value added products, efficient
packaging, labelling and innovative solutions, the Company will further expand
the existing markets for tomato and oil based products and bring substantial
development to the emerging markets of condiment and cooking sauces. The
improved technology and higher efficiencies will increase the competition in
the sector
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The client:
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Chumak is a leading food processor located in southern Ukraine, is involved in
the production of tomato paste based products, edible oil, mayonnaise, pickled
and canned vegetables and is an owner of the brand names “Chumak” and “Daryna”.
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EBRD finance:
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USD 16.0 million term loan and USD 10.0 million revolving credit line.
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Total project cost:
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Up to USD 77.0 million.
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Environmental impact:
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The project is screened B/1 requiring an environmental audit and analysis of
the facilities and the proposed expansion plans. These studies will be
undertaken by independent consultants and any necessary remedial actions will
be structured into an environmental action plan to be agreed with the Company.
The Company will be required to comply with both national and EU standards
for environment, health and safety and provide the Bank with an annual
environmental report on any environmental action taken in the year. Following
completion of the studies this PSD will be updated to reflect the findings.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Carl Sturen , President
Kozatska str. 3,
Kahovka Cherson Reg.,
74800 Ukraine
Tel. +38 0552 326 000
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EBRD contact:
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Lyudmyla Lishchenyuk, Operation Leader: lishchel@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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