Ukraine: The European Bank for Reconstruction and Development (EBRD) signed on October 21 an agreement with Soufflet Group about purchasing 24% shares of the largest Ukrainian malt producer OAO Slavutsky Malting Plant based in Khmelnitski Oblast. More over EBRD is offering a five-year credit of USD 11.8 million for financing the expanding of company’s production capacity up to 150 thousand tonnes of malt per year. The financing will also be invested in implementation of international quality certification, application of energy-saving technologies and management improvement.

The loan was offered in the network of earlier concluded contract with Soufflet Group for EUR 65 million to support the company’s activity in Central and Eastern Europe.

The share holding was acquired from the French company Soufflet, which was controlling 90% of the Slavutsky’s shares before the deal. On 8 March 2004 Baltic Beverage Holding (BBH) sold 90% of company‘s shares to Soufflet Group.

Representatives of Souffle Group pointed out that the granted credit funds would help to create stable source of revenue for farmers. Having great experience in malt production Souffle Group will provide assistance in establishing new technologies of barley growing and culturing.

Slavutsky Malting plant output in the last three months about 6 thousand tonnes of malt. In September the plant produced 1.6 thousand tonnes of malt that is a 75% drop versus August. Its production facilities are calculated upon yearly 120,000 tonnes barley processing and 70,000 tonnes malt output.

Reportedly, the Soufflet group, the world's leading maltster, has invested in Central Europe, which began at the end of 1998. Malteries Soufflet produces in nine countries, France, Poland, the Czech Republic, Hungary, Romania, Russia, Kazakhstan, Ukraine and Serbia-Montenegro. It owns 22 malting plants with 686 thousand tonnes production capacity per year in France and 600 thousand tonnes in Eastern Europe countries. With Slavutsky plant the total production capacity of the plant comes to 1.3 million tonnes.

According to analysts Ukraine’s demand in malt is 120 thousand tonnes per year.

24 October, 2004