Ukraine and China have signed a commercial contract on reconstruction of the Oriana potassium plant in Kalush (Ivano-Frankivsk region), which has been idle since 2002, the press service of First Vice Premier and Economic Development and Trade Minister, Andriy Kliuyev, has reported.
According to the press release, China’s Wuhuan Engineering Co. Ltd., Kitpred company with foreign investment and Ivano-Frankivsk regional administration signed the contract.
As reported, in April 2011 the Export-Import Bank of China,Wuhuan Engineering, Kitpred, the Ecology and Natural Resources Ministry and Ivano-Frankivsk regional administration signed a framework agreement on the creation of non-chloric potash fertilizers in Kalush on the basis of the Oriana idle plant.
OJSC Oriana potash fertilizer plant subsidiary was created in 1999 on the basis of OJSC Oriana potash fertilizer plant, which was launched in 1967 to develop the Kalush-Holynske field.
The projected capacity of the plant is 499,200 tonnes of potassium-magnesium per year.
The plant operated at a profit until 1996, and in October 2011 production of fertilizers was stopped due to a difficult financial state of the company.
In autumn 2010 the Ukrainian government announced its plans to reorganized the subsidiary into a state-run enterprise and hold a tender to attract investors to restore production within two years.
Kitpred was established in 2000 by a Chinese citizen, who took Ukrainian citizenship later. The company sells Chinese cars and car goods. In 2009 its net income fell by 102.5 times, to UAH 8.14 million, and its net loss came to UAH 3.29 million, compared to UAH 171.21 million of net profit a year before.
