Enterprise for the production of organic fertilizers

Project summary

LADIES AND GENTLEMEN.

LLC "Korner" asks you to consider the possibility of financing the completion of the creation of a production facility for the production of organic fertilizers based on sapropel and peat of Ukrainian origin in the Volyn region in the amount of UAH 65,000,000.

We bring to your attention a brief overview of the level of preparation for the final stage of a business project:

As of 01.12 -2019. the following is present:

1. A 100% subsidiary company of our company, Korner Ozernaya, is registered and operates in the Ratnovsky district of the Volyn region, for which a land plot has been registered (the term of the contract is 25 years) and a state special permit has been obtained for the extraction and processing of sapropel from Lake Mshanoe, in volume of 414 thousand tons.

2. The possibilities, terms, prices and terms of delivery of all necessary equipment (both serial and individual projects) were discussed and documented with all manufacturers.

Manufacturing time - 3-4 months at 8 manufacturing enterprises in different cities of Ukraine.

Design documentation for all technological equipment was developed and paid for. Part of the equipment was partially paid, including a new imported mixer paid in full and delivered to Ukraine.

3. State certificates for 3 types of fertilizers were obtained for a period of 10 years.

4. The project of the access road to the plant has been prepared, paid for and passed the examination.

5. Paid for the project for the power supply of the plant and partially the work itself, incl. TP.

6. Partially paid for the project of the plant as a whole (taking into account modern technologies and on an industrial scale of production, in volumes of at least 5000 m3 per month).

7. Simultaneously with the manufacture, supply and installation of equipment, all planned work will be carried out to equip everything necessary on the territory of the enterprise to ensure its normal operation, including premises for shift workers and engineering personnel, laying the necessary communications (water supply, sewerage, electric cable networks). Fire and burglar alarms are being designed.

8. Discussed and documented (with the production of samples) the ability of Ukrainian manufacturers to produce for us monthly at least 3,500 reinforced polypropylene big bags of 1.5 m3 (1 ton) for packing in them in bulk a business-forming bulk soil-forming fertilizer of the Saprotor trademark.

9. Logistics prices for the delivery of finished products from the fertilizer manufacturer to the buyer to the ports of the North African coast of the Mediterranean, Red Seas and the Persian Gulf, including vehicles to the Zabolotye railway station (Volyn region), railway transport from railway station to the station of the seaport of Chornomorsk (Odessa region) and further in shiploads up to 3,000 meters. / tons. The full term of delivery of the goods to the recipient is "from porch to porch" 21 days, including customs, loading and unloading, warehousing at the port of dispatch and execution of the necessary accompanying documentation.

10. On 01.01. In 2020, the company spent about $ 900,000 of its own and borrowed funds on the project.

The payback period of the project is 4-6 months after the start of the plant. The repayment period for the entire amount of borrowed funds is 12-14 months from the date of the start of financing.

11. The total cost of the project is $ 3.5 million.

12. The cost of 1m3 of business-forming fertilizer "Saprotor" is $ 300 on EXW (Free Plant) terms, the cargo is overloaded.

13. All preliminary agreements with buyers on the sale of finished products have been reached. The final contracts can be signed within two to three weeks after we receive a 100% guarantee of financing and confirmation to the buyer of the date of the first shipment of fertilizers.

14. Financing can be in the form of a credit line according to an agreed schedule.