Major natural food producer to expand in western Ukraine, open retail chain
Major natural food producer to expand in western Ukraine, open retail chain (Photo:terra.ua)
Natural food company Terra, which produces cereal and legume-based foods, is planning to open a factory in western Ukraine, local outlet ZAXID.NET reported on April 13, citing Terra’s commercial director, Oleksandr Yasynskyi.
The factory will reportedly be almost fully automated and self-sustaining, the company said.
Terra's first plant, in Kharkiv Oblast, has been operating for nearly 25 years. Prior to the full-scale war, the company had planned to expand the factory’s capacity, but pivoting to diversifying production by building a new plant in a safer region. It is impossible to relocate such a large production facility, Yasynskyi stated, and easier to build a new one.
Currently, the company is deciding on a location for the site — Lviv, Ternopil, and Rivne oblasts have all been considered. The site also needs rail access, a transport hub, necessary infrastructure, and talent for the facility, Terra explained. It is also searching for foreign investors to help the project reach fruition, as the new plant will require about $20 million in investments.
"If we were to expand our plant in Kharkiv Oblast, it would cost about $5 million, but building new infrastructure would be many times more expensive, so we are looking for partners," says Yasynskyi.
“We are also considering the possibility of cooperation with powerful agricultural producers, so that we can set up a new company for growing and processing.”
The new plant is slated to process 300,000 tons of raw materials per year, which will enable it to produce 150,000 tons of food products annually. In addition to the company's usual range of products — cereals, flour, flakes, instant cereals and soups, etc. — the plans include the launch of a buckwheat line and a corn processing line.
The plant also wants to build its own biomass boiler and produce "green" heat and electricity to meet production needs.
"It will be a highly automated production: lines, packaging, and transportation," says Yasynskyi.
“We will need operators to work at the control panels. That's why we plan to employ people with disabilities because it won't involve carrying bags.”
According to him, if the company manages to find a ready-made location, the new plant can be launched in a year, while construction from scratch will take approximately two years.
Terra is also looking to expand its retail chain for its products, with a flagship store in Kharkiv Oblast already operational. New stores across the country are expected to open over the course of the year.
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