KSG Agro suspended $ 54 mln investment program
KSG Agro holding has decided to suspend the planned investments in the development of a $ 54 mln due to the unstable economic situation in Ukraine.
This was announced in an interview with Polish newspaper Polska Agencja Prasowa (PAP) by CEO Sergey Mazin, according to Fixygen.
As explained by CEO, new development strategy will be presented by the end of May after consultation with major shareholders. However, he expects that during this period there the reforms needed for the IMF loan Ukraine will take place.
KSG Agro has completed the first phase of construction of the pig farm, and is currently suspended further design work on its expansion. Also plans to build a plant for the production of alfalfa pellets are suspended as well as the launch of the plant for production of fuel pellets.Agroholding CEO added that the company Polish Energy Partners (PEP) at the end of 2013 withdrew the contract for the supply of pellets. PEP was supposed to receive 80% of the plant products.In addition, this year the company has no plans to increase its land bank, which currently stands at 96 hectares, although previously there were plans to expand in 2014He added that the events in Ukraine are already reflected in the results for the first quarter.
"This will affect our operations. We have tried to optimize costs and reduce potential losses. It will be seen from our cash flow, "- he said.
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