May 5 2004, 12:18 UNIAN

Oilseed crushing company Chumak to draw $15 mln EBRD loan for operational development

The European Bank for Reconstruction and Development is considering an application of Kherson-based foodstuff company Chumak for granting it a $15 million credit for extension of sunflower oil crushing capacities and purchase of the raw material, a news release of the Bank has stated.

According to the report, Chumak intends to expand its capacities for extraction of crude vegetable oil, to fund development of its marketing system and its raw material supplies base. The Bank has informed that the total worth of the company's operational expansion project is $23 million, and the rest of the sum is intended to be drawn from local banks.

The examination of the project by the EBRD Board and the final decision on the issue is scheduled for May 25 this year.

The company Chumak was established by Swedish South Food, jointly with several food processing plants operating in Kherson Region, in 1996. In 1998 Chumak acquitted two sunoil crushing plants and since July 1999 has been producing a renowned sunflower oil brand "Chumak".

In 2000 all the company's affiliate enterprises were incorporated into Close Joint Stock Company "Chumak", UNIAN news agency informed.