October 21 2004, 17:00 APK-Inform

EBRD bought 24 pc share of Slavuta Malt Plant and granted it an $11.8 mln credit

European Bank for Reconstruction and Development has made a decision to buy 24 percent share of Joint Stock Company Slavuta Malt Plant (Khmelnitsky Oblast) and to grant the enterprise an $11.8 million credit for the term of 5 years.

The plant's management is going to invest the credit funds into expansion of production capacities up to 150,000 tonnes of malt per year, implementation of international quality certification and energy saving production technologies, managerial improvement.

The financing is granted under framework agreement, worth 65 million euros, between EBRD and French Soufflet Group, which is the owner of Slavuta Malt Plant. The agreement was aimed at facilitating activities of Soufflet Group in production of malt, malting barley and some other products in Central and Eastern Europe.

A spokesman for Soufflet Group said that the credit funds would help create a stable source of revenue for local farmers in Ukraine. Having great experience in malt production, Soufflet Group will provide them assistance in establishing new technologies of barley growing and production of good quality malting grain.

Slavuta Malt Plant is one of the largest malt producers in Ukraine with up 80,000 tonnes of yearly production capacity. In March 2004 the world leader in malt production - Soufflet Group - acquired its 90 percent share from its previous owner - Baltic Beverages Holding.

According to experts, annual malt consumption in Ukraine is about 120,000 tonnes.