BBH-Ukraine to construct additional beer plant

A representative from the Kharkiv Regional State Administration said yesterday that Carlsberg is in search of land in the region to construct a new beer plant. Olha Pankiv: Carlsberg-owned BBH-Ukraine confirmed to us yesterday that it plans to construct a new plant in Ukraine though has not decided yet about its exact location. In a comment to Kommersant, Petr Chernyshov, CEO of BBH-Ukraine, said that planned capacity of the new plant is 1 mln hl, almost double the company’s current capacities. BBH did not announce whether the new plant will be consolidated with one of BBH’s assets in Ukraine – either Slavutych (SLAV: BUY) or Lvivska Pyvovarnya, or if it will be setup as a separate legal entity. As in the mid-term we expect consolidation of BBH assets in Ukraine under one stock, similar to the restructuring of BBH assets in Russia, we believe the plans are beneficial for the current Slavutych shareholders.