Investments in the name of a partnership
The year of 2018 became a benchmark one for TRANS OIL GROUP OF COMPANIES. The largest fat-and-oil plant in Moldova — FLOAREA SOARELUI SA (Bălți), completed the first phase of a major modernization project which covers reconstruction of the development section and a new oil extraction workshop. Trans-Oil, the parent entity, has already invested 10 mln EUR in modernization of the plant.
The project is designed to achieve several goals. The first goal is economic. The new investment will allow the factory to increase production volumes by nearly 30% — from 800 tonnes to 1200 tonnes per day of sunflower seed. The second goal is commercial. The project will upgrade the quality of the produced oil and improve the oil’s competitive advantage on the market. Lastly, the third goal is environmental. The new technology should minimize the environmental effect of any industrial processes.
— During this year, thanks to the addition of the advanced equipment, we managed to significantly increase the production of our oil while reducing manufacturing losses. Thus, the prime production cost was significantly reduced, said the General Director of FLOAREA SOARELUI SA, Stella Ostrovetchi. — The highest level of technological development provides us with additional commercial benefits, such as being able to purchase raw materials at the most attractive prices as well as implementation of efficient tools for providing advancements to agricultural producers. These developments will motivate agrarians to increase their yield figures through use of the latest technologies of soil treatment, seed material, and crop protection products.
The next stage of development for FLOAREA SOARELUI SA is the construction of a new elevator complex. The additional storage capacities will increase the current factory storage capacity from 35 thsd tonnes to 70 thsd tonnes of sunflower seed. The project is scheduled to be completed in October-November of 2019.
Stella Ostrovetchi: "The plant of FLOAREA SOARELUI SA became the most advanced fat-and-oil enterprise in the Black Sea region".
For many reasons, the beginning of the processing season 2018-2019 was special for the company. Thanks to realization of the well-designed investment programme, the company managed to construct and unleash the most technologically-advanced industrial complex in the region. The plant includes a raw material preparation workshop (sunflower seed, soybeans, rapeseed) and extraction workshop. Reconstruction of the most critical technological site significantly increased the capacities at the plant and also enhanced the overall environmental efficiency of the production cycle.
Three years ago, the shareholder and the management team of Trans Oil Group of companies decided to undertake major modernization of the technological processes at the factory. This meant the complete re-configuration of the main production workshops at the leading fat-and-oil enterprise of the holding — FLOAREA SOARELUI SA (Bălți). The project was designed to achieve several goals. Firstly, the economic one — to increase production volumes and efficiency. Secondly, the commercial one — to improve the competitiveness of the factory. Lastly, the environmental one — to minimizing of the impact of industrial processes on the environment. The first stage of the project covered the modernization of the developing section and construction of the oil extraction workshop. The holding invested 10 mln EUR in realization of the stage.
Trans Oil Group of companies realized this project in partnership with Europa Crown Ltd, the leading global manufacturer of technical equipment for the fat-and-oil industry. Moreover, the group of companies purchased not just new equipment, but actually the entire production chain — including the modern IT-components equipped with all necessary safety and control systems. Also, it is worth noting that the plant created new high-paying jobs for several skilled technical employees.
For the whole period of construction of the new production infrastructure, experts from Europa Crown Ltd (UK) gradually monitored and controlled all processes of introduction and application of the new technical equipment, including the operations of adjustment and starting up.
Also, the well-known Ukrainian installing company PPC TechMash provided construction of new industrial facilities and communications of FLOAREA SOARELUI SA. This company has a reputation as a reliable and accurate developer of a large number of large-scale fat-and-oil plants in Ukraine, the USA, China and the European Union. It is important that PPC TechMash is a systemic company with a sizeable personnel of design engineers and constructional erectors, whose special qualification allows creating top class industrial facilities— the highest complexity with the most stringent safety standards.
Thanks to the new complex for raw material preparation and oil extraction, the daily processing capacities of raw materials in the fat-and-oil plant of FLOAREA SOARELUI SA increased from 800 tonnes to 1200 tonnes. The new equipment allows the plant to develop multifunctional capabilities; its processing lines can now work with all three major oilseed crops — rapeseed, sunflower seed and soybeans.
According to the General Director of FLOAREA SOARELUI SA, Stella Ostrovetchi, the initial plan of oilseeds processing at the enterprise for the current season totals not less than 220 thsd tonnes of sunflower seed. To date, the plant processed more than 120 thsd tonnes of raw materials. Taking into account the modernization (thus, increasing of the production capacities) and the rhythmical start of the season, FLOAREA SOARELUI SA will most likely increase the minimum plan for sunflower seed processing to 330-350 thsd tonnes going forward. To date, the company's management team has focused to achieve such volumes. Moreover, the situation on the Moldavian market of oilseed raw material contributes to such a trend, at least in terms of the stocks availability.
According to experts, in the current season, the harvest of sunflower seed totaled nearly 850-900 thsd tonnes. According to the official statistics figures (taking into account the left-bank part of the Republic of Moldova), last season the production of the oilseed reached the record level — 900 thsd tonnes. To date, the market is completely demonopolized. The growing number of large-, medium- and small-scale commodity producers and traders already started exporting their products under the contracts with CIF, FOB, CPT, DAP delivery terms. Every year, the number of such business transactions is growing. In order to provide the plant with the required volumes of raw materials in terms of the highly competitive market environment, the top priority task for the management of FLOAREA SOARELUI SA is to keep an active dialogue with suppliers, as well as introduction of the mutually beneficial and efficient tools for money advancing to the agricultural producers.
Thanks to the introduction of the advanced equipment, the plant managed to significantly increase the production of oil, reduce the manufacturing losses, and decrease the production prime cost, respectively. The achieved effects allow realization of a well-balanced pricing policy. According to the General Director, Stella Ostrovetchi, to date there is every reason to report that in the Black Sea region FLOAREA SOARELUI SA is one of the most effective enterprises for oilseeds processing. The highest level of technological development provides FLOAREA SOARELUI SA with the additional commercial resource, including the ability to purchase raw materials at the most attractive prices for the average farmer.
The company's management believes in partnership with agrarians and relies on the cooperative formation of stable value added chains, which are beneficial for both farmers and oilseed processors. The effective technical base together with the competent management team looks toward win-win solutions, which will give the required results. Therefore, the growth in efficiency of FLOAREA SOARELUI SA also stimulates agrarians to increase the crop yield by using the advanced technologies for soil treatment, seed material, and crop protection products.
In general, the General Director of FLOAREA SOARELUI SA, Stella Ostrovetchi, said that the staff of the plant and agrarian-partners feel optimistic about the future. Thanks to successful increase of plant production by 30%, the next stage of development will be a new elevator complex In the future, the simultaneous storage capacities will increase from the current level of 35 thsd tonnes to 70 thsd tonnes of sunflower seed. The project is scheduled to be completed in October-November of 2019.
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