The new plant is adjacent to the grain export terminal owned by Estron Corporation. Bunge says that the plant's projected crushing capacity is 600,000 tons per year, and it is expected to be operational in early 2005. The plant, as a client of the terminal, will have access to the terminal's expanded capacity of 240,000 tons of storage space with two panamax vessel loaders.
"Bunge's strategy is to be the leading agribusiness and food company in the higher growth markets. This investment reflects the confidence of the joint venture partners in the long-term agricultural potential of the Ukraine," said Jean-Louis Gourbin, CEO of Bunge Europe.
"The port of Ilyichevsk is suited as a logistics gateway to service and supply the Black Sea, Mediterranean, and Near East vegetable protein and oil markets," said a spokesperson for Estron Corporation.
Bunge, which is currently the largest oilseed processor in the world, says that it intends to market the products made at the new plant on a global basis. Sunseed and other oilseeds for processing will be originated locally by Suntrade, Bunge's Ukrainian origination company, which has been active in the region since 1998.
At the end of last year Bunge announced that it was investing $11 million in the modernization of its oilseed extraction plant at Dnipropetrovsk, currently one of the three biggest oilseed plants in the Ukraine. The investment in the facility is being made throughout the course of this year and aims to improve the technical capabilities of the facility as well as implementing ecological safety measures.
As well as being the world's leading oilseed processing company, Bunge is the biggest seller of bottled vegetable oils to consumers, while in Europe it is also the leading producer of soybean meal. In a bid to capitalise on the growing awareness of the health benefits of soy, Bunge also recently joined forces with DuPont to form Solae, a leading producer of soy protein concentrates and isolates.
Meanwhile Interfax reports that Dutch agro-food giant Archer Daniels Midland Nederland has been given the go ahead for the acquisition of a large stake in OJSC Illichevsk oilseed processing plant, based in the Odesa region of the Ukraine. The acquisition was given the go-ahead by the Antimonopoly Committee purchase and will give the company a controlling stake in the venture.
Ukraine is currently one of the world's biggest producers of sunflower seed crops. In 2003 it produced approximately 10 per cent of the world crop for the seed. Last year proved to be a bumper harvest, with a total of 4.2 million tons compared to 3.3 million in 2002.