Roshen to invest UAH 1.5bn (USD 60mln) in biscuits-making plant

Roshen to invest UAH 1.5bn (USD 60mln) in biscuits-making plant

The facility will be put into operations in Boryspil near Kyiv in autumn this year

Confectionary Roshen decided to invest UAH 1.5bn (USD 60mln) in construction of a new buiscuits-making plant in Boryspil near Kyiv. UAH 1.2bn will be allocated as a phase A construction costs.

In June, Roshen plans to mount the production equipment and launch its production in Autumn this year, told Viacheslav Moskalevskyi the president of the corporation.

The plant will create from 800 to 1,000 job places in Boryspil. The average monthly salary will be UAH 12 000 for a packing team member, while foreman’s salary will stand at UAH 30 000 – UAH 32 000.

The construction of the new plant requires separate stages of production utilizing particular technologies. The biscuits-making plant has to have large ovens and the production complex will be a single-storey building to meet all the necessary production requirements, as a result.

Roshen to invest UAH 1.5bn (USD 60mln) in biscuits-making plant

The plant in Boryspil will produce all products made of flour in Roshen. The other production facility in Kyiv will make famous Kyiv cake and only.

It will be a third in a row newly built production facility for Roshen Corporation. The company emphasizes that to erect a new plant is cheaper than to refurbish the existing one.

The new biscuits-making plant can host up to 20 production lines. The managers of the corporation expect the plant to reach its projected capacities in 4 years coming to 5,000 tons of the yearly output.

At this, there are several problems with the project, as local authorities are not willing to sell such a large land parcel for the construction of the plant. Roshen sub-leases the land plot from the municipal enterprise. The major corporation is failing to negotiate a buy-out. Roshen proposes to pay UAH 50mln for the land plot considering that if the plant is registered in Boryspil, it will also pay UAH 16mln ─ UAH 20mln a year in taxes.

Roshen corporation has already won domestic market and it cannot increase sales more without a considerable growth of the real disposal income in the country, told Alexey Doroshenko the executive officer of Ukrainian Association of Suppliers of Retail Chains. Proceeding on the assumption, the products from the new plant can go for exports to the Middle East, the CIS, Poland, Lithuania, Romani and Bulgaria. For example, demand for Roshen confectionary grows in Poland due to increasing Ukrainian population in the neighboring country.

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