FEERUM, a leading manufacturer of comprehensive grain elevators in Poland, also operating on export markets, received the final positive decision of the Export Credit Insurance Corporation on the insurance of receivables under two Ukrainian contracts with a total value of nearly 50 million EUR (about 210 million PLN) concluded at the end of November this year. Thus, the condition suspending the entry into force of both contracts has been fulfilled.
The company has concluded two large contracts for the sale of grain silo complexes with the Ukrainian company EPICENTR K LLC from Kiev. The first, for an amount of 35.6 million euros, provides for the delivery of five silo complexes by October 1 next year. The second one, worth EUR 13.3 million, is expected to be finalized within 9 months of receipt of the advance, whose maximum payment deadline was set for 30 June 2019. Deliveries will be effected in western Ukraine.
“This is very good information. From the beginning, cooperation with KUKE was very successful, and consent to the insurance of these receivables is a great success “- said the president of FEERUM Daniel Janusz.
“At KUKE, we are happy to engage in our clients’ projects carried out in the farthest corners of the world, without being afraid also of countries widely regarded as difficult. The FEERUM transaction is an example that a well-thought-out project, with a contract with relevant provisions and a reliable contractor – despite the fact that the complicated Ukrainian market, implemented politically and economically – is right to exist. The project is insured and, as a consequence, it is also bankable. The success of FEERUM makes us all the more pleased that as a KUKE we were with the company at almost every moment of negotiating the contract. With this transaction we want to give a clear signal that Polish exporters have ready-made solutions that allow them to compete better with their counterparts from highly developed countries much better than before. On the market, where not only the quality of the delivered product, its competitive price or delivery time are important – the attractive financing of the purchase of goods is no less important. Through skillful use of instruments, unconventional approach to solutions and speed and efficiency of decision-making, we can win, the best example of which is the FEERUM transaction”– said KUKE president Janusz Władyczak.
Obtaining the insurance policy of KUKE will enable the ordering of the so-called “Supplier’s credit”. The condition of selling on many markets, including the Eastern ones, is offering the product along with its financing. Thanks to cooperation with KUKE – which has declared contract insurance in a loan for five years – it is possible to finance it through a financial institution selected by FEERUM.
“The acquisition of contracts on the Ukrainian market in cooperation with KUKE will provide FEERUM with significant growth. The total value of orders from Ukraine is nearly 210 million PLN. We strengthen our position in the region, and Ukraine will soon be the leader among our foreign partners. We hope that this will be an introduction to further orders from the Ukrainian direction and further cooperation with KUKE“- said Daniel Janusz.
FEERUM, as part of its contractual obligations, will design, manufacture and supply silos to the indicated locations in Ukraine, as well as provide warranty service and training for the ordering party’s employees. The company will not be responsible for the assembly and commissioning of the silos supplied.
Recently, Ukraine occupied the third position among the company’s export markets. As a result of the contracts signed, it will become the leader among the FEERUM international partners.