Basic information about the enterprise
Legal organizational form – LLC. The company was established in December 2010, as a new oil-plant processing and seed oil production enterprise.
Ownership structure - 3 founders.
The company was formed on the basis of buying movable and immovable assets equal to $1,7 mln
Among the purchased assets were: oil producting department, 2 eleators, extraction, lodge and weighing room.
Plant capacity – 80 t/day
From the time the company was purchased it was also reconstructed for infrastructure improvement, enterprise profitability advance, new job creation and entry of the company into the international market.
As of 07.03.2012 the reconstruction works have been ended and the plant was placed in operation.
At the moment this is a stable operating business with nonstop working cycle and highly-skilled team.
In consequence of conducted reconstruction of the enterprise, the plant has following infrastructure:
- on-the-floor storage and 2 elevators (which gives the opportunity to simultaneously preserve more then 15 000 t of crops);
- additional elevator for combination of production batch with a capacity of 1 500 t of crops;
- finished product storage (simultaneous preservation of 3 000 t of oil cake);
- containers for oil (simultaneous preservation of oil – 450 t);
- POL storage warehouse;
- hexane storage warehouse;
- Inventory storage warehouse;
- gas station;
- repair services;
- welding department;
- drying compartment;
- cop calibration department;
- line №1 of oil-bearing crop processing for plant oil production with a capacity of 120 t/day;
- line № 2 of raw materials and soya processing for biodiesel (which allows enterprise working simultaneously with 2 different oil crops) with a capacity of 25 t/day;
- line №3 –biodiesel production department with a capacity of 20 t/day;
- compound feed production department, with a capacity of 20 t/day;
- briquets and pellets manufacturing deartment with a capacity of 45 t/day. The enterprise has a license about declaring this petrol an alternative one;
- three centers of grain receiving;
- electronic platform truck scale VA-60/18 carrying capacity 60 t;
- manufacturing laboratory has an attestation license and attestation industry (validity period of the license – till 11.07.2016 г.);
- firewater pond;
- waste treatment facilities;
- the capacity of the enterprise increased from 180 kW\ day to 740 kW/day;
- boiler-room capacity increased to three boilers.
Total area of infrastructure of the plant - 7856,1 sq.m. (according to the ownership certificate).
Total area of the land lot - 3,1563 ha (land lease agreement, signed in 2011 for a period of 49 years with a possibility to expand the area of the land lot).
Total number of qualified workers is equal to 114 people.
- Availability of approval and title-establishing documents:
- land – land lease agreement for 49 years;
- infrastructure – ownership certificate;
- State construction supervision – declaration of placing into operation the completed project after reconstruction;
- sanitary control – operational permit for capacities of production, processing and implementation of alimentary products (for plant oils) with a list of more than 60 countries in which export of alimentary products is permitted;
- veterinary control – operational permit for capacities of production, combination and preparation of supplement feeds;
- ecology control – permit for waste dumping in 2014-2016. (11 waste generating sources) + contracts on hazardous wastes, liquid and solid effluents export; permit for pollution discharge of ambient air by stationary sources (16 sources); permit for special water use (period of validity - to 31.12.2018 );
- List of output product
- crude oil;
- raw linseed oil;
- rafined linseed oil;
- raw rape-seed oil;
- rafined rape-seed oil;
- raw soybean oil;
- rafined soybean oil;
- raw corn oil;
- rafined corn oil;
- graded sunflower seeds;
- graded lint seeds;
- linseed cake;
- sunflower cake;
- rape-cake;
- soybean cake;
- fodder concentrate, made of corn oil cake;
- fuel pellets, made off sunflover peeling;
- biodiesel.
- Investment plan of development
From the moment of company establishment, the enterprise has worked only with contactors, which are engaged with legal financial and operational activities, and which were not involved in cooperation with agents of economic activity, that were made with the aim of tax avoidance. However, because of the fact that after purchasing the enterprise, between putting it into operation and getting all of the needed approval documents, our company had no time to perform the active financial and business operations in the legal environment on the domestic and international markets.
Also forceful corruption system in the echelon of our government and absence of means to obtain VAT during 4 years lead to erosion of working capital, without which such huge mechanism as LLC just unable t operate. Also the reconstruction of the plant, which lasted for 4 years and was worth more than $3,5 mln has an impact on funds decline.
After increment of volume of additional floating assets there is an opportunity to increase the profitability of enterprise by 3 times, namely by means of:
- organization of storage, transfer, purchase and drying of oil grains;
- establishing of plant oil refining and desodorization department, and also PET bottle department with bottling line. The infrastructure of the plant allows these lines.
- compound feed production;
- seasonal financing depending on yield;
- expanding of production assortment;
- wooden pellets production;
- organization of electrical supply of the plant by means of alternative fuel – launching of 6 wind mills with a capacity of 35kW, which will decrease the expenses on electrical energy and improve the conditions of ecosystem.
Currently, oil production is a highly liquid business in the world, and one of the calling cards of our country. That’s why we think there are no operating oil production plants on the market, which were placed in commission and have all the needed approval documents, with a productivity rate of 100 and more t/day. . Advantageous location in the proximity to farmlands and convenient transport junction, including developed infrastructure gives this enterprise the opportunity to develop the productive capacity up to 400 t of oil grain per day.
Financial and economic investment ratio:
Business price – $3 000 000
Purchase of additional equipment - $1 500 000
Needed investments – $1 000 000
Implementation for 2014 - 44 000 000 UAH
Profit for 2014 - 12 000 000 UAH
