Kernel-Capital Buys Melovoye Oil Plant

KIEV - Nov 2/04 - APK -- Company Kernel-Capital Ltd, one of the affiliates of Kernel Group, has acquitted controlling stock of Melovoye Refined Oils Plant "Streletskaya Steppe" (the village of Melovoye, Lugansk Oblast, east Ukraine), producing the sunoil brand "Shchedryi Dar", Kernel Group's press-service has informed.

Marketing Director for Kernel Group Andriy Razumnyi said to by this acquisition the Group had accomplished one of its goals, which is to possess its own trademark on the market of bottled sunflower oil.

He said the brand "Shchedryi Dar" had been on Ukrainian market for more than three years and had won good reputation tanks to its high quality and thanks to a unique commodity item among the product range - oil of the first cold wringing.

He also said that Kernel Group was going to strengthen positions of the brand on the Ukrainian market by way of expanding the steady clientele and was going to increase distribution of the products in the CIS countries.

Director of CJSC "Melovoye Refined Oils Plant" Mykola Horbaniov, commenting on the results of the deal, has said that it was expected to bring a number of positive changes for the plant.

First, Kernel Group possesses a well developed system of purchases, which is very important in today's conditions of sunflower deficit. Second, the Group, which is the operators of Poltava Oil Extraction Plant, can provide for a close technological cooperation between the two enterprises. Third, according to the plant director, it is expected that entry into Kernel Group will create opportunities for expansion and optimization of production at the east-Ukrainian enterprise.

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