Kernel will construct oilseed crushing plant in Western Ukraine

Kernel expands its crushing capacity by constructing the largest and the most efficient multi-seed (sunflower, rapeseed, soybean) processing plant in Ukraine.

This is reported by the press service of the company.

The construction site is in the western part of the country, near Starokonstiantyniv in Khmelnitskyi region on the basis of the Kernel's operating elevator.

The planned processing capacity of the plant will be 1 million tons of sunflower seeds per year with the investment of around $130 million. The project will be financed from the Eurobond proceeds raised in 2017. The commissioning of the plant is scheduled for 2020.

It is noted that the new plant will become the most modern in Ukraine in its segment. High-tech equipment and European standards for quality management, occupational safety and ecology will ensure that production meets the highest world standards.

The enterprise will increase the volume of tax revenues to the local budget, will create new workplaces, as well as the opportunity for local companies to participate in tenders for work and services.

Alexander Korniychuk, the chairman of the Khmelnitsky Regional State Administration, noted that the priority for the region's leadership is the social and economic development, and it is the strategic partnership with the industry leader that guarantees the timely implementation of the investment plan.

"Together with the district administration, we are ready to provide comprehensive support at all stages of the implementation of the plant construction project for the processing of oil crops. The company has proved itself in the field as an experienced investor, a professional producer of agricultural products, a reliable employer and a responsible tenant of agricultural land," he said.

Yuriy Pugach, the Operations Director at Kernel said that support is the important condition for the company when choosing a construction site.

"The sunflower seed has been the most profitable crop for farmers. Sunflower yields in the Khmelnitskyi region reach 3.5-4.0 tons per hectare, while Ukrainian average is 1.5-2.0 tons per hectare. Commissioning of the new crushing plant in the proximity to emerging sunflower belt shall substantially reduce the transportation costs benefiting to local farmers," Yuriy Pugach noted.

Note: Kernel is the world's largest producer and exporter of sunflower oil, the leading producer and supplier of agricultural products from the Black Sea region to the world markets. The company accounts for about 8% of global production of sunflower oil. It supplies products to more than 60 countries. Since November 2007, shares of Kernel Holding are traded on the Warsaw Stock Exchange (WSE).