Ukraine's Milkiland acquires cheese producer in Poland
2012-08-02 11:59:06
Milkiland Group (ten enterprises in Ukraine and one in Russia) has acquired the Ostrowia cheese factory in Poland for EUR 12 million, according to a statement posted on the website of the Warsaw Stock Exchange.
Through the acquisition, Milkiland plans to expand its share on the EU market and thus reduce risks from Russia's ban on imports of Ukrainian dairy products.
Milkiland plans later this year to invest EUR 3.5 million in bringing dairy production into line with the requirements of the CIS market and EUR 4.5 million in financing the working capital of the enterprise.
"Ostrowia is a perfect addition to Milkiland's asset base and after launching investments will become one of the largest and best equipped cheese making facilities of Milkiland," Milkiland N.V. CEO Anatoliy Yurkevych said.
He said that this acquisition would bring new international exposure to the group's business. "With Ostrowia, Milkiland will combine its in-depth knowledge of CIS dairy markets with advantages of the Polish dairy sector, such as developed milk supply base, reasonable costs and advanced dairy technologies," he said.
"Poland is already one of the largest dairy exporters in the EU, and Milkiland will turn its still untapped potential to CIS markets, primarily Russia and Ukraine," Yurkevych added.
Ostrowia produces cheese (up to 15,000 tons per year), cottage cheese and yogurt (up to 11,000 per year), and cheese spread (up to 7,000 tons per year).