April 8, 2013

UkrLandFarming cancels poultry expansion in North America

Ukrlandfarming has officially cancelled plans to expand production in North America and has recently decided to sell all assets in US poultry processing that had been acquired in 2011.

"We will not launch production in the US, we will put the assets up for sale, it does not matter how much will be paid for the assets," the owner of the company, Oleh Bakhmatiuk, told at the recent press-conference on March 30, 2013, adding that there is a certain amount of interest in the assets.

According to the report, the sale included its subdivision in North Carolina, with headquarters in Georgetown, Delaware, and other assets for US$24.9 million.

The owner of Ukrlandfarming said that he bought the assets expecting that the domestic production market in the US would revive, although due to actions of Brazilian and other South American producers the poultry market in the US has become oversaturated.

Bakhmatiuk said that after the acquisition of the US assets he sent funds there to pay for current liabilities, and at present a bankruptcy procedure has been announced to finish the processes.