Short description
Innovation project includes building of the Ukrainian corn processing plant in Vinnitsa district. Manufacturing equipment and technical plan of the plant operation was ordered to the Swedish BUHLER AG manufacturer, the world leader in this business segment.
For the implementation of the project was chosen a company, which happened to be a leader in technology area of сereal-processing industry - BUHLER AG, Uzwil, Switzerland. Manufacturing equipment and the newest technological concept of the company will provide leading positions of end product of the plant regarding to its quality and additional cost.
During the collaborative work, Buler AG specialists and «Ukrenergobudresursi» company specialists, while visiting the equipment manufacturing plant in Uzwil (Switzerland) found a technological concept of this innovative project.
Estimated productive capacity of the plant will be equal to 2 t/hour or 15 thous 840 t in a marketing year.
Product
Cereal, meal – for food and brewing industry
Mill offals, husking bran – for formula feed industry
Main assets
The territory of 2,9 ha was purchased for implementation of this innovative project. On this territory are situated floor stage warehouses with a maximum capacity of 5000t of corn, cargo handling equipment, administration building and utility networks. It is supplied with water and electricity. The territory also has an advantageous transport location in Vinnitsa district. On this teritorry are located railroad siding facilities. The ground also includes a convenient drop-off for heavy transport and a parking place.
Market and business struggle
Ukraine is an international manufacturer of corn. During 2013-2014 marketing years was secured a record crop with a gross collection equal to 26,3 mln t. Ukraine entered the top five world leaders in corn manufacturing. Currently, corn occupies a cultural area of 17% and gives a 23% export of all agricultural products.
The highest crop yield of corn is in Khmelnitsky district - 63 centner/ha , Vinnitsa district - 60, 6 centner/ha, Kyiv district - 59,5 centner/ha. The research of Ukrainian market showed that corn production increased by 3,5 during last 10 years. However domestic consumption including processing increased only by 0,75. The export of a cultivated yield continues.
According to official data annual cereal production is equal to 1 mln t.
In cereal production pattern corn takes unenviable place – 8% in total volume and buckwheat groats consistently takes the lead with 37%.
Described situation of Ukrainian corn market created favorable conditions for project implementation.
Competitive position
- With the price offers of corn the company won a tender for cereal supply for breweries of SABMiller company, which is an international manufacturer of beer.
- Fat content of corn for brewing industry according to DSTU is no more than 1,5%, which keeps Ukrainian processing companies from world market of brewing industry. BUHLER AG equipment will keep the figures within the limits of 0,45-1.0%. It will provide the entrance to the world market of brewing industry.
- The maximum production of integrated corn grits, produced by using the equipment of Ukrainian factories, develops 75% to weight of corn materials. This figure, which will provide customizing of project factory, is equal to 69%.
- Productive expenditures for processing of 1t of corn for our factory are 60% less than the expenditures of the rest of Ukrainian existing factories.
- Modern process design solutions of equipment will provide our factory with a high rate of high-quality grits, bioethanol, animal and poultry combined feed.
- Innovativeness and high competitiveness of the project involves production of high quality corn grits for breweries, which is used by all international beer manufacturers.
Finances and measures of efficiency
Project expenses:
Equipment cost - €680 000
Cost of the specialty equipment, which was purchased in Ukraine - €120 000
Cost of project works - €19 300
Cost of construction and installation work - €101 000
Aspiration system assembling - €18 314
Installation of the building, which is made of panels of 800m2 - €144 000
The contract with BUHLER AG for diagnostic milling procedure - €3000
Administrative expenses on project services - €54 280
Aggregate investment - €1 139 895
Profit from selling 1.315 t of processed corn: $291.52
Expenses in processing of 1315 t of corn : $193 .0.
Profit: $1 186 735 per year/ €1 014 303 per year
Pey-off period – 1. 12 years
The calendar period of innovative project execution in the corse of building will be equal to 11 month form the moment of equipment purchase.
