Epicenter K set to construct five grain storages

The Polish manufacturer of silos and grain dryers FEERUM has signed two major contracts for the construction of elevators with Epicenter K. The total contract's value is nearly EUR 50 million (PLN 209.8 million).

The first contract, for an amount of EUR 35.6 million, provides for delivery of five silo complexes by October 1, 2019. The second, worth EUR 13.3 million, is to be completed within 9 months from receiving the advance payment. Deliveries will be effected in western Ukraine.

FEERUM, as part of its contractual obligations, will design, manufacture and supply silos, as well as provide warranty service and training for the ordering party's employees. The company will not be responsible for the assembly and commissioning of the silos supplied.

The contracts also provide for FEERUM to receive advance payments of 15% of the contract value.

According to Epicenter K, the total storage capacity will reach 725 thou. tons. Vasily Moroz, Head of the agricultural division of Epicenter K, noted that the additional capacity would help increase the quality reserves for storing grain and oilseeds.

“Next year we will be no longer dependent on the market deficit: we will plan and optimize all our internal logistics. In addition, with the advent of new capacities, we will be able to provide professional services for the reception and industrial storage of grain for other agricultural producers,” he explains.

Svetlana Nikityuk, Head of the Trading Department and Deputy Head for Agricultural Matters and Storage Business of Epicenter, new industrial grain storages will be constructed in Vinnytsya, Kyiv and Khmelnytsky regions.

For the implementation of this project, Feerum S.A. provides Epicenter K with the so-called supplier credit. The Polish manufacturer has obtained consent to ensure receivables from an export contract insurance company KUKE, which has agreed to ensure Ukraine in the context of martial law.

Previously it was reported that in MY2017/18 the agricultural division of Epicenter K harvested 760 thou. tons of grain and oilseed crops.