August 3, 2012

Ukraine's Milkiland Group has acquired the Ostrowia cheese factory in Poland, as part of its expansion plans on its share in the EU market and reducing risks from Russia's ban on Ukrainian dairy imports.

Milkiland plans to invest in bringing dairy production in line with the requirements of the CIS market later this year and financing the working capital of the enterprise.

"Ostrowia is a perfect addition to Milkiland's asset base and after launching investments will become one of the largest and best equipped cheese making facilities of Milkiland," Milkiland N.V. CEO, Anatoliy Yurkevych, said.

He said that this EUR12 million (US$14.7 million) acquisition would bring new international exposure to the group's business. "With Ostrowia, Milkiland will combine its in-depth knowledge of CIS dairy markets with advantages of the Polish dairy sector, such as developed milk supply base, reasonable costs and advanced dairy technologies," he said.

"Poland is already one of the largest dairy exporters in the EU, and Milkiland will turn its still untapped potential to CIS markets, primarily Russia and Ukraine," Yurkevych added.

Ostrowia produces cheese (up to 15,000 tonnes per year), cottage cheese and yogurt (up to 11,000 tonnes per year), and cheese spread (up to 7,000 tonnes per year).