Ukrainian agrifood company Myronivsky Hliboproduct (MHP) is planning what it refers to as a “sizeable greenfield project” in the Kingdom of Saudi Arabia, as well as possible expansion projects in Serbia and Croatia.
In a press release on the company’s website, MHP is planning a sizeable greenfield project in the kingdom, with “solid local counterparties. The company stated that the project is in an advanced planning stage.
“The proposal currently being discussed is an equity contribution of 30% by MHP and local partners, while the balance is funded through low-cost, long tenor loans provided by the state, which allows the project to achieve a high [internal rate of return] and return to the country considerable economic and food strategic benefits for the future,” the company stated.
MHP disclosed that the company’s “key associate and official sponsor” in Saudi Arabia is Prince Turki Al Faisal, a member of the royal family and a close associate of a member of MHP’s board.
Other investment projects
In the same press release, MHP said the company’s investment projects in several eastern European countries will continue, and there are plans under review to invest in Serbia and Croatia. It added that current investment projects are estimated to be around $US$100 million in the near future.
MHP clarified that it is not presently planning to buy assets, but it will continue to “conduct market analysis in conjunction with local partners.”
According to the WATTAgNet Top Poultry Companies Database, MHP is the leading meat producer in the Ukraine, and its poultry division holds more than a 50% market share there. MHP also ranks sixth among poultry producers in Europe, slaughtering 349 million broilers annually.
In November, MHP announced the creation of a group of companies for business transformation in various areas due to the involvement of startups and the introduction of digital technologies.
