Germany-based EOP Biodiesel AG and Ukraine-based Cascade Production Ltd. agreed to cooperate in the establishment of a rapeseed processing joint venture in Ukraine. The companies signed a long-term agreement to this effect in late February 2006 in Lutsk, Volyn Oblast.
The project, worth “dozens of million Euro,” will be implemented in two phases. The first, to be completed before 2009, includes planning, construction and operation of a rapeseed oil plant. Construction of a biofuel plant will be the second project phase.
It is still unknown where the plants will be located.
According to Cascade Production General Director Ihor Aleksandrov, the project implementation will be leveraged using loans from Ukrainian and foreign banks. The financial participation of the foreign investor will enable access to low-interest credits.
The project is seen as one that will both have a positive impact on farmers and diversify sources of fuel supply in Ukraine.
Ukrainian experts predict good prospects for rapeseed growing in Ukraine. The natural fertility alone ensures 20 percent profitability of the business, whereas intensive technologies increase this rate as high 100 percent.
Principal activities of EOP Biodiesel AG include the production and marketing of bio-diesel fuel produced from rapeseed. By-products of the production process can be used as quality cattle feed, fertilizer or as raw material for the pharmaceutical, paint, cosmetics or plastics industries.
Cascade Production Ltd. specializes in supply of dried dairy products. The company also supplies sunflower seeds and oil.
