Ukrproduct Regulatory News (UKR)

12 Dec 2006 08:39

Ukrproduct Group Ltd12 December 2006 12 December 2006 Ukrproduct Group Limited ("Ukrproduct" or the "Company") Completion of the new Skimmed Milk Powder (SMP) dryer facility and comment on the world's SMP market As part of its continuing strategic development and the on-going modernisationof its production facilities, the Company has completed the installation of anew SMP dryer at the site of the Company's Starokonstantiniv site in Ukraine.The dryer more than doubles Ukrproduct's existing SMP capacity whilst consuming40% less energy than the Company's extant SMP-producing equipment. The SMPobtained from the new facility will be of higher grade and is, therefore, likelyto command a material price premium over other (1)product produced elsewhere inUkraine. The output of the new dryer for January 2007 is pre-sold in full atprices of between US$2,300 and US$2,400 per metric tonne; sales negotiationsregarding February's output are at an advanced stage. Since November 2006, the world's SMP price has fully overcome the weaknessobserved in mid-2006 and has exhibited an encouraging upward trend. TheDirectors believe that the world's SMP price is likely to remain at this levelfor the Company's SMP output until at least the middle of next year, after whichtime the outlook is less certain. For further information: Ukrproduct Group +38 044 502 8014 Iryna Yevets, CEO, Iryna.Yevets@ukrproduct.comDmitry Dragun, CFO, Dmitry.Dragun@ukrproduct.com WH Ireland Limited 0161 832 2174 David Youngman -------------------------- This information is provided by RNS The company news service from the London Stock Exchange