Ukrproduct Group Ltd
12 December 2006
12 December 2006
Ukrproduct Group Limited
("Ukrproduct" or the "Company")
Completion of the new Skimmed Milk Powder (SMP) dryer facility and
comment on the world's SMP market
As part of its continuing strategic development and the on-going modernisation
of its production facilities, the Company has completed the installation of a
new SMP dryer at the site of the Company's Starokonstantiniv site in Ukraine.
The dryer more than doubles Ukrproduct's existing SMP capacity whilst consuming
40% less energy than the Company's extant SMP-producing equipment. The SMP
obtained from the new facility will be of higher grade and is, therefore, likely
to command a material price premium over other (1)product produced elsewhere in
Ukraine. The output of the new dryer for January 2007 is pre-sold in full at
prices of between US$2,300 and US$2,400 per metric tonne; sales negotiations
regarding February's output are at an advanced stage.
Since November 2006, the world's SMP price has fully overcome the weakness
observed in mid-2006 and has exhibited an encouraging upward trend. The
Directors believe that the world's SMP price is likely to remain at this level
for the Company's SMP output until at least the middle of next year, after which
time the outlook is less certain.
For further information:
Ukrproduct Group +38 044 502 8014
Iryna Yevets, CEO, Iryna.Yevets@ukrproduct.com
Dmitry Dragun, CFO, Dmitry.Dragun@ukrproduct.com
WH Ireland Limited 0161 832 2174
David Youngman
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