Odessa Port Plant is going to increase its profitability

Odessa Port Plant (Ukraine) is preparing a new tender, where the company is going to find the supplier of natural gas on a tolling basis.

“The toll manufacturing model of work is the most realistic mechanism of the current operation of the Odessa Port Plant. This is primarily due to debt overload and the resulting legal work restrictions. First of all, there is a risk that the plant’s products will be arrested, if the ownership right belongs not to the customer but the plant,” said the Director of the enterprise Nikolai Parsentiev.

According to his statement, without the supply of natural gas on a toll manufacturing basis, the Odessa Port Plant may be suspended, and about $2 million will be needed to launch it again.

“Amidst the volatility of prices for gas and fertilizers on international markets, the supplier works on a fixed payment basis and bears all financial risks. Based on the results of the new tender, we expect that the payment amount will increase, thereby ensuring greater profitability of the Odessa Port Plant,” Nikolai Parsentiev noted.

Source: RBC