Kernel invests $44 million in assets in ports of Chornomorsk and Reni

22.08.2023, 09:58
Kernel invests $44 million in assets in ports of Chornomorsk and Reni - Photo
Andriy Verevskyi, Kernel. Photo - landlord.ua

The company Kernel Holding SA , the largest agricultural holding of Ukraine, purchased storage facilities for transshipment of vegetable oils in the port of Chornomorsk for $19.4 million, as well as a terminal for transshipment of sunflower oil in the port of Reni for $24.75 million, reads the announcement of the holding on the Warsaw Stock Exchange, Interfax-Ukraine informs.

"The simultaneous storage of sunflower oil in the amount of 105,000 tons will enable the group not to stop the work of processing plants in case of disruptions in transportation, as was the case in the 2022-2023 financial years, and to smooth out logistics," the message says.

Sunflower oil will be stored in warehouses, and then redirected by road transport to the port on the Danube. In this way, the agricultural holding intends to reduce the logistics costs of the alternative export route. If Ukrainian Black Sea ports are unblocked, the holding plans to use these assets as the main Black Sea deep-sea transshipment base for sunflower oil, which is exported.

The agreement on the acquisition of assets in the port of Chornomorsk is subject to antimonopoly supervision of Ukraine, the agricultural holding noted.

Kernel also entered into an agreement to acquire for $24.75 million 100% of corporate rights in Reni-Oil LLC - a sunflower oil transshipment terminal with simultaneous storage of 15,000 tons in the port of Reni. The terminal with receiving, storage and unloading capacities will enable the export of sunflower oil even in case of blockade of the Black Sea ports, the agricultural holding emphasized. Kernel plans to close this deal by December 31, 2023.

Kernel is Ukraine's largest producer and exporter of sunflower oil, a key supplier of agricultural products from the Black Sea region to world markets. Kernel exports its products to more than 80 countries. The company's land bank amounted to almost 510,000 hectares. Kernel's largest shareholder through Namsen Ltd. is Ukrainian businessman Andriy Verevskyi.

At the beginning of 2023, Kernel bought a terminal for transshipment of sunflower oil in the port Pivdennyi near Odesa.

If you notice a spelling error, select it with the mouse and press Ctrl+Enter.

Comments

Latest news