Ukraine-based agri-food group MHP said it has completed the second-stage expansion of its poultry complex in the city of Vinnytsia and is on target to meet production targets for the plant by 2022.
London-listed MHP earmarked an estimated capital investment of around US$420m for the stage-two phase of the project, which will add 260,000 tons of poultry meat to its production quotas to be fazed in gradually, and is expected to operating at full capacity by the end of 2021.
Located in the west central region of Ukraine, the Vinnytsia complex will primarily serve markets in the EU, the Middle East and Africa. MHP added three chicken rearing sites came on stream in the second quarter of last year under the phase-two stage, along with a new slaughterhouse.
Once the site is fully up and running, MHP’s overall annual capacity will rise to around 840,000 tonnes of poultry by 2022.
Meanwhile, chief executive officer Yuriy Kosyuk said in the company’s latest annual report MHP will continue to investigate potential acquisitions and joint ventures, both in Europe and the MENA regions.
Last September, MHP announced it planned to acquire Perutnina Ptuj in Slovakia, a meat producer serving its local market and also exporting to Croatia, Serbia and Austria. Its products include deli meats, and chicken cuts and sausages under brands such as Poli, Jata and Topiko.
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Export markets are catching up in terms of MHP’s sales of poultry products, accounting for 48% last year, compared to the 52% sold in Ukraine, according to the annual report.
Chairman Dr John Rich said: “The company’s international expansion was furthered in February 2019 with the completion of the acquisition of PPJ (Perutnina Ptuj) in the Balkans, and delivers upon our strategy to become a global protein producer. We are well-positioned to capitalise on future opportunities and will continue to actively monitor other potential M&A targets, both in poultry production and in the meat-processing industry, in Europe and in the Middle East.”
In financial terms, MHP reported $128m in profits for the year ended 31 December, down from $204m in the previous 12 months. Operating profit also fell, coming in at $311m versus $361m.
Revenues were up 22% at $1.56bn.