Kharkiv Pasta Factory

Large pasta manufacturer looking to expand into spaghetti

This Joint Stock Company, is the largest pasta manufacturer in Kharkiv which produces many different types of macaroni using quality ingredients.

At one time in the recent past the company produced 80 to 100 tons of macaroni per day but this is now down significantly.  The reason is due to very strong competition from small local manufacturers, who operate illegally, do not pay taxes, and produce inferior macaroni using poor quality flour and adding artificial coloring. As a result, their costs are 10% lower than the company's. This is all possible since the cost of entry into the macaroni production market is very low. Moreover, competitors use the company's name and address on their packaging.

There is a large market for spaghetti and the company feels that is would be in a good position to sell this product in many of the larger Ukrainian cities. The President feels they can be cost competitive.

The President has a very clear vision of the solution to the company's competitive problem. This is to switch into the production of spaghetti. This product requires specialized equipment which the small illegal manufacturers cannot afford. A used spaghetti line with packaging equipment will be able to produce 500 kg/hour and will require an investment of $300-500,000 which could be amortized over 3 years.

Contact

Mr. Vasily S. Sas, General Director.

Postal address

Kharkiv Pasta Factory

14, Frankovskaya Street

310050 Kharkiv

Ukraine

Telephone

(380) 572-21-73-32 and 21-57-11

FAX

(380) 572-21-57-11

Electronic mail

None

Information supplied by CEI, April 1998.  Page last updated January 19, 2004