Short information about the enterprise:
Total area of the land lot – 2 ha industrial area\ distance – 300 km from Kyiv
Good access to the transport junctions
Located near the rail road
Sewerage system, water supply system, heating system
Industrial property:
- Main industrial building (1000m2)
- Storage with the end product (1000m2)
- Administrational building and facilities (2-storied building)
Productive capacity of pellets processing: 50 thous t/year
Capacity of the power line 1,6 MW
Extensive feedstock:
- Approximately 5 big sawmills are located in the radius of 5 km from the enterprise
- The potential capacity of standing crop of the area is estimated in 120 mln m3
- Lack of competition regarding raw materials source for production
- Industry takes one of the first places in an account of pine supply and added-value wood processing in Ukraine
- There are 2 FSC of forests nearby
Characteristics of the product:
Wooden pellet - 6-8 mm in diameter, 17 mm in length, humidity – to 7,2%, ash content – 0,62% calorific output – 4132 kcal/hour, mass density – 650 kg
Packaging:
- Standard EN pus A2 for multiple usage: 15-20-30 kg bags
- EN B for industrial usage 1000 kg bags
Distribution area:
- Approximately 95% of produced wooden pellets are exported to the EU. Company is one of the biggest wood pellet exporters from Ukraine to the EU.
- Company in the production of wooden pellets uses DIN- quality standards, which in the first place are in requisition on Europe market (currently the key markets are Poland, Bulgaria, Germany, Italy, Greece; it is planned to enter the markers of Netherlands and Belgium)
- The key consumers are little and medium HPP and commercial facilities
- Delivery of pellets is performed by highway transportation and rail road.
- Sentiment of pellet manufacturing market of Ukraine:
Ukraine has all opportunities to become the leading supplier of wooden pellets in the EU.
Key moments:
- Proximity to European consumers: Ukraine is located in the central art of Europe and has around 1152 km borders with the EU. Polesia is the richest district of wood resources in Ukraine ad it is located in 100-500 km from Poland, which is the biggest export market for Ukraine. Ukrainian sea ports are located approximately in 1500 km from European Mediterranean ports. Nearly 95% of produced wooden pellets in the country are exported in the EU countries.
- Extensive raw materials inventory for wooden pellet manufacturing. Forest areas in Ukraine cover the territory equal to 10, 6 mln ha. Woodland covers nearly 30-60% of Polesia territory. In Polesia concentrated 30% of standing crop. Potential waste product after processing of wood in Ukraine is estimated in 1 mln t.
- Potentially big inside market. There are approximately 450 large CHPP. North of 40 CHPPs are located near the existing enterprise. Ukrainian CHPPs annually consume more than 40 mln t of fuel. If replace coal consumption on CHPP for 2% wooden pellets, the consumption will be estimated in 1 mln t of pellets per year. “Green” tariff for production of energy from processed resources is in force in Ukraine.
- Other advantages. Qualified and cheap labor power. Developed transport infrastructure: rail road and ports. Lack of strong manufacturers/ competitors: opportunity to use the advantages of the first entrance to the market. Short logistic chain: raw materials source-production- transportation-consumer.
III. Investment project of activity expansion involves the attraction of the strategic partner for implementation of the following plans of company development:
Production development and development potential allow increasing the nominal production capacity up to 80 thous t per year. The contributing factors of it are following:
- There are the real opportunities of raw material supplies for maintenance of production capacity, equal to 80 thous t per year (currently there were conducted some researches of the opportunities of 120 thous t/year supplies for the project)
- There are free areas for putting into operation the new lines
- Great infrastructural opportunities: electrical and water supply, sewage system, heating system
- All necessary transport logistics would be an asset: proximity to rail road and also to raw materials source and target consumer
- Additional equipment for production lines expansion is available: granulating machine with the productive capacity of 5 t.
Co-investing involves the attraction of a strategic investor. The total amount of requested investment begins with $2 000 000
Further information is available on demand.
