Project summary

Limited Liability Company OIL PRODUCTION UKRAINE LTD represents an investment project of the construction of oil refining complex.

Name of the Investment project:
"Establishment of the enterprise on processing oil-bearing seeds with the subsequent use of the resulting processed products for the production of combined feed, biofuel, and chilled chicken meat."

Project objective:

"To organize high-tech production aimed at processing of soybeans with the production of soybean oil, high-protein soybean meal and granulated soybean hull. The meal will be further processed to obtain a combined feed, used in the process of broiler chickens fattening. The project implementation will result in the return of the invested financial resources, payback of the incurred costs within specified terms, as well as obtaining profit.

Information about the project:

According to the design documentation developed by Khimtechnologia LLC, construction of a grain storage facility will be performed, equipped with grain and oil crops loading and unloading units for road and railway transport, equipment for grain drying and shelling. Construction of the Oil-Extraction Plant includes soybean preparation unit, extraction unit, meal storage complex, oil storage tanks, oil and meal loading units for railway and road transport. There are plans on the construction of a feed mill and the facility for broiler chickens raising.

The project is aimed at a large-scale export of grain crops, export of soybean oil, and export of high-protein soybean meal; as well as domestic sale of combined feed, chilled broiler chicken carcasses and granulated soybean hull.

Location:

The project implementation will take place at 5 hectares industrial site in town Zolotonosha, Cherkassy region.

The site is currently equipped with utilities - electricity (35 kV line, at the construction of 35/10 kV substation), gas supply, water supply and wastewater discharge systems.

A railway track runs along the perimeter of the site; it significantly reduces the estimated cost of the investment project (there has been designed the engineering and construction project of the railway track on the territory of the enterprise).

The land plots have been rented for 49 years.

Cadastral numbers of plots are:

7110400000 06 0010027;
7110400000 06 0010080.

The main indicators of the investment project (at the construction completion)

project implementation term, years	4
payback period, years	2,49
estimated sales volume, USD million per year	146,48
estimated EBITDA, USD million per year	31,51
EBITDA profitability, %	21,50
required investment volume, USD million*	27,28*

* - where the first and second lines account for USD 19.05 million

Main project stages:

FIRST LINE

a granary with a capacity of 40 thousand tons

SECOND LINE

processing of soybeans 198 thousand tons per year
increase of grain storage capacity to 80 thousand tons

THIRD LINE

production of combined feed 115 thousand tons per year
broiler chickens raising 2.4 million heads per year

Company description
OIL PRODUCTION UKRAINE LTD was registered in 2015, in town Zolotonosha, Cherkassy region. The founder is "Sensei Group" company.

Description of the business to be created
The first project implementation stage includes the construction of a storage elevator for grains and oilseeds with a capacity up to 40,000 tons (supplier of equipment is Yugelevator, Ukraine). The storage elevator is equipped with grain and soybeans receiving units from road and railway transport, as well as a module for loading grain into road and railway transport. The elevator includes shaft dryer, reloading tanks of dirty and wet grain, metal storage silos, a chemical and technological laboratory, and an electronic grain weighing system.

The second stage includes increase of the grain storage capacity up to 80,000 tons (the supplier of equipment is Yugelevator, Ukraine); there are installed additional silos, equipped with conveyor galleries to the current head house of the elevator; there is also assembled a gallery to transport beans for processing. There is constructed an oil extracting plant for processing soybeans with a capacity up to 600 tons per day (supplier of equipment is Europe Crown, Great Britain). The plant includes a workshop for preparation and hot soybean hulling, which also includes a soybean hull granulation line, an extraction workshop, oil storage tanks and meal storage warehouse, loading modules for finished products.

The third stage includes the construction of a combined feed mill within a processing complex; it will have a production capacity up to 115,000 tons of combined feed per year (equipment is provided by OTTEVANGER MILLER ENGINEERS, the Netherlands) and the establishment of a broiler chicken raising facility with a total capacity up to 2.4 million heads per year (equipment is provided by Van De Glind, Belgium, Szlachet - Stal, Poland).

Project implementation plan

COMPETITIVE ENVIRONMENT (Analysis of competitive environment)