Ukraine’s Kernel to open new $200 mln oil extraction plant in early 2024

Kernel, one of Ukraine’s largest agribusiness groups, is close to completing the construction of the Starokonstantinov oil extraction plant in the Khmelnitsky region, investment in which has already exceeded $200 million, Ukrainian media reported, citing a statement on the company’s website.

The plant, one of the largest in Europe, is 85% finished and the start-up and commissioning of the production line is scheduled for the beginning of 2024, the company said.

The plant will have capacity to process 1 million tonnes of sunflower seeds annually and produce unrefined pressed sunflower oil. In order to optimize processes, production will be fully automated. The company has installed equipment from Switzerland’s Buhler, Spain’s Sigma and Ukraine’s KMZ Industries.

The elevator will begin receiving sunflower seeds from the new harvest this fall.

Kernel CEO Yevgeny Osipov said the Starokonstantinov plant is the group’s eighth oil extraction plant and the first that the group is building in western Ukraine.

“By investing in the construction of a processing asset, we are stimulating local farmers to increase production of oil crops, showing them that they will have guaranteed sales in future,” Osipov was quoted as saying by the company’s press service.

The company also said that a thermal power plant has been built on plant property. Its solid fuel boiler will burn sunflower seed husks and produce steam for the plant. The project also includes the construction of treatment facilities.

Tags: Ukraine, sunflower oil, Kernel, Production, sunflower seeds, Starokonstantinov oil extraction plant, Khmelnitsky region