Russia's Dominant group of companies will provide a UAH 89 million loan to public JSC Petrovsky Sugar Refinery Two, which is under the control of the group (Kirovohrad region) to launch the refinery in 2011 after a three-year idle period, the press service of the regional administration has reported, referring to the company's director, Mykola Obidin.
He said that the owners of the company are ready to invest some UAH 15 million for repairs and another UAH 10 million for the purchase of coal, diesel fuel and other materials.
A press release of the regional administration says that Kirovohrad region governor, Serhiy Larin, agreed on the launch of the refinery this year after talks recently held in Kyiv with the owner of the refinery – Dominant group President Pavel Demidov.
"When I communicated with the refinery owner – Russian businessman Demidov – the readiness of the district leadership for cooperation, the profitability of the refinery and support of the project by the regional authorities were established as the conditions for the refinery’s launch," the report says, citing Larin.
He said that the company owns seven sugar refineries in Russia and one in Ukraine.
Larin said that during the past three years when the refinery was idle, it was under repair and the equipment was mothballed.
It is planned that over 500 workers will work at the refinery after its launch.
Larin sadi that the region requires four sugar refineries for normal sugar beet refining. He said that there were 11 sugar refineries in Kirovohrad region, but almost all of them were inoperative, and now there are only two working sugar refineries. Petrovsky Sugar Refinery Two will be the third one and a fourth will be launched in Novoukrainka.
According to a report for 2009, the largest shareholder in Petrovsky Sugar Refinery Two was Belledune Trading Limited (British Virgin Islands), with a 77.3% stake.
The company’s net income plunged by 2.4 times in 2009, to UAH 7.02 million, and its net loss fell by 1.4 times, to UAH 6.48 million.
