Epicentr

On May 6, Epicentr K LLC became the new owner of the Dunaivtsi Combine of Bread Products. The company offered UAH 227 million for the lot in Prozorro Sale, and increased its starting price by 21%. About the plans of the Epicentr regarding the use of the new facility and the development of the agro-direction – read in the article.

Why Did Epicentr K LLC Need to Buy a Powerful Bakery?

Since 2016, the company has been developing the Epicentr Agro direction and has several capacities for storage, processing, and transportation of grain in the central regions of Ukraine. Among them is the Khmelnytsky region, where the property complex of the State Enterprise "Dunaivtsi Combine of Bread Products" is located. Also, part of the funds is invested in the development of railway infrastructure and the construction of railway tracks to elevators to unload highways.

The company plans to use the facilities of the SE "Dunaivtsi Combine of Bread Products" for storage, processing, and transportation of grain to trading companies. Also at the enterprise, there is currently a stopped sausage shop, which can be started up and used for its intended purpose. Of course, before the start of operation at the bakery, the equipment will be modernized – representatives of Epicentr K have already announced the company's readiness for millions of investments.

The Dunaivtsi Bakery will become the next link in a powerful network of elevator hubs in the Khmelnytsky region, which makes it possible to qualitatively optimize grain logistics from the region and makes it more efficient. Thanks to this, local agricultural producers receive a significant competitive advantage: the ability to grow large volumes of grain and quickly transport it to customers.

What Are the Global Plans of the Company Regarding the Development of the Agricultural Direction?

Epicentr Agro is actively developing the direction of storage and processing of grain and oilseeds, building modern elevator hubs in the regions of its presence. The fact is that today in Ukraine there is an acute shortage of grain storage facilities, modern elevator capacities, high-quality and fast logistics. Many working granaries are physically and morally outdated. Therefore, small agricultural producers do not have the opportunity to fully store their crops and are forced to sell part of the late grain crops at a minimal cost or even leave them to winter in the fields. Farmers with warehouses usually face the problem of the inability to quickly transport products to seaports.

Epicentr

Thanks to its powerful route elevators, Epicentr Agro can help other agricultural producers in solving these problems in Khmelnytsky, Vinnytsia, and Kyiv regions. According to Svitlana Nikitiuk, deputy head of the agricultural holding for elevator direction, head of the central office of Epicentr Agro, director of the trading department, today the main goal of the company is to become one of the five largest and most efficient elevator operators in Ukraine and take its rightful place in this market. In addition, the company is currently taking the first steps in creating regional grain hubs, where the commercial interests of sellers and buyers of grain will be combined.

How the Development of Elevator Complexes Takes Place?

In recent years, Epicentr Agro has increased the number of its elevators from 6 to 14, and their capacity has quadrupled: from 360,000 tons to almost 1,500,000 tons. Most of the elevators are route elevators – products from enterprises are loaded directly into wagons and sent by rail to seaports. Thanks to this, grain buyers – trading companies – receive the goods as quickly as possible.

In the fall of 2020, as part of a large-scale investment project for the reconstruction and construction of elevator complexes, three super-powerful elevator hubs were put into operation at once. Two new elevator complexes are located next to the existing facilities – this is the third stage of the Zakupnyansk grain-receiving enterprise in the Khmelnytsky region and the third stage of the Vinnytsia grain elevator. Another new elevator is located in the Kyiv region – it was built on the site of the existing Pererobnyk Enterprise.

In 2019, the company built two powerful elevators from scratch in Vapnyarka and Vendychany (Vinnytsia region). In 2020, the reconstruction of Antonina's elevator complex began, and in 2021, a contract was signed for the construction of two new elevator hubs in Shepetivka (with a capacity of 120 tons) and Chetyrboki (with a capacity of 60 tons) – all three are located in the Khmelnytsky region.

Epicentr

More than UAH 6 billion has already been invested in the development of the elevator economy – in equipment, construction, and development of local transport infrastructure. One of the biggest priorities, in particular, is the completion of new railway lines near the company's elevators, since the presence of a railway allows shipping several dozen wagons of grain in one batch at once. Therefore, for each of the new facilities, several kilometers of railway track are additionally laid.

What Bakeries Will Be Exhibited as Part of Small-Scale Privatization?

Six properties are currently being prepared for sale. Auctions for them will be announced later:

1. SE "Novopokrovsk bakery" in the Kharkiv region (read more about the object here).
2. Single property complex of the SE "Nepolokovets Bakery" in Chernivtsi region (more details here).
3. Single property complex of the SE "Radyvyliv Bakery" in Rivne region (more details here).
4. Single property complex of the SE "Ivano-Frankivsk Bakery" in Ivano-Frankivsk region (more details here).
5. Single property complex of the SE "Poltava Bakery" in Poltava (more details here).
6. Single property complex of the SE "Nizhyn Bakery" in Chernihiv region (more details here).

Epicentr

What Are the Benefits of Transferring Bakeries to Private Ownership?

The assets of the bakery factories will be put up for auctions at Prozorro Sale, since these facilities have become non-core for the state. The transfer of bakeries into private ownership will allow turning the declining objects into profitable enterprises that will help create a high-quality Ukrainian product. Through privatization, buyers will receive assets that are important for business development, local communities will receive territorial development, and the state will receive a new tax base and jobs.

For the preparation of the article, materials from open sources were used.

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