Milkiland to start adapting Polish dairy to Russian standards in November
23 October 2012
Milkiland (MLK PW) is going to start the reconstruction of its newly acquired Polish dairy Ostrowia in November, the company said yesterday. The reconstruction, aimed at adapting the cheese production facilities to Ukrainian and Russian standards and get permission to sell on these markets, will be finished in spring 2013, according to the company. Meanwhile, some of Ostrowia’s assets will be leased to a local dairy cooperative until the end of January 2013. Earlier, Milkiland announced the planned facility adjustments would cost EUR 3.5 mln.
Alexander Paraschiy: It took three months for Milkiland (since Ostrowia’s acquisition) to start the reconstruction, which looks like a slight delay compared to the company’s initial plan (Milkiland had said it planned to complete the project by the end of 2012). While we note that another postponement is possible, we welcome the company’s move into the Polish market and its attempt to mitigate the market risks of Ukraine and Russia, and we remain bullish on the Milkiland story.
