Kerameya, Ukraine’s leading clinker bricks manufacturer, launched its second clinker bricks production line which will produce clinker bricks under the trade mark ‘KlinKeram’ and ceramic blocks under the trade mark ‘TeploKeram’. The production line will have a capacity of 30 million bricks per year or 60 million blocks per year transforming Kerameya into the largest manufacturer not only in Ukraine but also in the region.
This capacity expansion was financed by shareholders of Kerameya: private equity funds Emerging Europe Growth Fund (EEGF) and Western NIS Enterprise Fund, managed by Horizon Capital, and FMO, Dutch development bank, as well as by debt provided by the European Bank for Reconstruction and Development (EBRD). The EBRD extended a US$ 10 million loan for the expansion Kerameya’s production facilities in 2011. This was one of the first post-crisis transactions in the Ukrainian construction materials industry. Less than two years later this brand new clinker production line is launched. The project illustrates that the right combination of committed shareholders and strong financial partners can produce good results even in the most difficult times.
Kerameya is a Ukrainian company specializing in production of ceramic bricks (‘KlinKeram’ brand), clinker ceramic pavers (‘BrukKeram’ brand) and ceramic blocks (‘TeploKeram’ brand). Its tunnel kiln is one of the longest in Europe (up to 212 m long). The products’ technical and visual quality characteristics surpass other facade bricks and cement-sand pavers. In 2012, Kerameya products won ‘100 Best Products of Ukraine’ award for outstanding quality.
Ivan Telyuschenko, CEO of Kerameya, said: “We are proud to launch this new line today. This expansion is possible due to the support of our shareholders, EBRD and the local government. Construction of the KlinKeram line was motivated by demand for our products, which, surprisingly, took place despite full utilization of the existing production capacities and a declining construction market. In fact, KlinkeramII is another plant within Kerameya, which is capable of responding quickly to market needs and produce new products demanded by the market such as clinker bricks and ceramic blocks”
Natalie Jaresko, Horizon Capital Founding Partner and CEO, commented: “We are keen to see Kerameya’s strategy implemented. The potential for further market growth in Ukraine, the opportunity to build market share in neighboring markets, continues to be great. Today, our Ukrainian clinker bricks, and going forward, our ceramic blocks are an excellent alternative to imports. Kerameya is a company which makes a difference in this market and we are proud to be here today to recognize and support its success.”
Floor van Oppen, FMO Investment Officer, commented: “FMO is pleased to have made the initial investment in 2007 and has continued supporting the Company, for example by providing additional equity in Dec 2008, in the wake of the financial crisis, together with the other shareholders. FMO has continuously had confidence in the management team and that confidence proved to be well founded as the Company immediately yielded results when the market improved. Jointly with all shareholders, FMO increased the equity investment in 2011 to enable the construction of the second clinker line to expand capacity. We hope with the new production line the company will enter a new level of development”.
About Kerameya
Kerameya is a ceramic building materials manufacturer, specializing in the production of clinker bricks. www.kerameya.com.ua
About Horizon Capital
Horizon Capital is a private equity fund manager that originates and manages investments in mid-cap companies with outstanding growth and profit potential in Ukraine and the region. Currently, Horizon Capital manages three funds, Emerging Europe Growth Fund II (EEGF II), Emerging Europe Growth Fund (EEGF) and Western NIS Enterprise Fund (WNISEF), with over $600 million under management. www.horizoncapital.com.ua.
About FMO
FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 6.3 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl
Press Contact
Tetyana Bega
Investor Relations Manager
Horizon Capital
T: +380 44 490 5580
E: tbega@horizoncapital.com.ua
René de Sevaux
Press Contact
FMO
T: +31 70 314 9868
E: r.de.sevaux@fmo.nl
