I have gotten some inquiries about investment opportunities in the Ukraine so I thought I might post some here in between trying to figure out what is going on here politically. This one is more specific but some will be more generalized analyses of business opportunities.
Ukrainian factory plant and equipment modernization
Business: Plastic film manufacturing used for candy wrappers, agricultural bagging and packaging, dairy product containers (sacks), detergent packaging, foodstuffs packaging, etc. (The Ukraine has an extensive food processing sector.)
Amount needed: $6-$10 million for plant and equipment upgrade. (Potential for joint venture.)
Market: The manufacturer is looking to position the company to take advantage of two market opportunities. The first is in manufacturing packaging to customer specifications allowing for direct sale to the customer. Cuts out several layers from the distribution chain resulting in a cost savings.
The second market is to supply Twispan film to local candy makers at a savings in cost and in time. 80% of this product is imported. A minimum order of 17 tons is require to make the order. (Local customers must pool orders to come up to the minimum.) Importation causes delays of from 7 to 14 days and results in tariffs costs for entry. Local manufacture would save time and result in cheaper product.
Other potential markets: There is potential for export to the CIS region and to Europe.
Technology and infrastructure: Company uses older technology but is looking to upgrade to the state of the art. The plant facilities are mostly remnants of the Soviet era so they also need to be modernized.