Partnering opportunity

Ukrainian production company is looking for a joint-venture partner for expanding production of granular calcium ameliorates

Summary

The Ukrainian production company, acting in the area of granular calcium ameliorates, is looking for a partner who is ready to invest into expanding of existing facilities in order to reduce the costs, increase volumes of production as well as marginal contribution. The company is interested in signing a joint venture agreement or finance agreement.

Technical Specification or Expertise Sought

Investment project supposes the following: - construction of a processing complex which will provide the company with its own raw materials and will make it possible to reduce production costs; - construction of necessary engineering networks, namely - an external power network with a capacity of 400 kW. Further (perspective) investment projects of the enterprise: - construction of a workshop for the production of calcium-magnesium ameliorates; - development of own quarry, which is located quite close to the production facilities of the enterprise.

Partner sought

Ukrainian company is looking for partner who is ready to invest under joint venture agreement or finance agreement with a maximum share up to 49% and receive passive income from positive EBITDA. Investors which are ready to fund such business projects and invest in them.

Description

The Ukrainian company was established on the basis of a former building materials factory in the city of Slavuta, Khmelnitsk region, Western Ukraine. The main activity is the production of granular calcium ameliorates used for acidification of soil and as a calcium fertilizer in agriculture. The Company’s production premises are located on 2 hectares of industrial land and also has a reserve of another 7.3 hectares of land under lease contract until 2024 with the option of purchasing it from state authorities or further lease period prolongation. Also in September 2019 the construction of additional warehouse for finished goods with a total area of 600 sq.m was launched. As of 01.10.2019 there are 22 employees in the company. The main manufactured product is a floured granular chalk. The first batch was produced and sold in March 2017. For the period 2017-2019 annual production output was increased from 1’500 tones up to 6’000 tones. Granular calcium ameliorates are in high demand due to the mass acidification of soils in Ukraine. The company carries out a set of measures to ensure production with its own raw materials, namely, extraction and processing of raw materials. One of the main problems of plowed land in Ukraine and not only (most European countries - Belarus, Poland, Denmark, England, UK, Germany) is a decrease in fertility caused by acid degradation or soil decalcification, resulting in a significant deterioration in physicochemical soil properties, reduction of available forms of biogenic and alkaline-earth elements for plants. The company is looking for partners under joint-venture agreements.

Advantages and innovations

- own production premises with an option for growth - high demand for granular calcium ameliorates on the market due to the mass acidification of soils in Ukraine - huge reserves of raw materials necessary for the production of calcium ameliorates, including chalk, limestone, dolomite in Ukraine.

Development stage

Already on the market

Intellectual Property Rights (IPR)

Not available


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