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Asking Price:	$6,000,000 USD United States Dollars
Business for Sale Industry:	Manufacturing: Plastics
Reason for Selling:	Distance factory from Kyiv Headoffice.
Year Established:	1929
# of Employees:	190 - 200
Yearly Revenues:	$4,200,000

Business for Sale Overview:

Located in the Crimea region, on the sea shore where the waters of the Black Sea and Azov Sea meet, this private company is the biggest manufacturer of disposable plastic food service (tableware) items in Ukraine. Products are disposable plastic tableware more than 20 types of cups (coffee- and beer cups), plastic trays and saucers. The customer base consists of the big wholesale companies supplying various disposable items (cups, dishes, cutlery, tooth sticks, napkins, outdoor furniture etc). With annual sales amounting to USD $4.2 million, the company has obtained a market share in Ukraine currently of 25 30%. Some ? of all products are exported to Russia. The company would consider complete sale an investment or a joint venture

Property Features and Assets:

The factory currently occupies approximately 14.000 m² of industrial- and 7.000 m² of warehouse floor space. Since the original factory facilities - however - were constructed in 1929 and thus have a long history, many old and outdated workshops have been demolished and new ones built instead. A modern office facility was also put in operation recently. The site is well protected from the sea. Furthermore, the factory owns a total of 15 ha of land – very much underutilized - and therefore offers quite some opportunities for future expansions and further development. There are currently some empty workshops and not finished construction projects.

Market Competition and Expansion:

The market is tough but quite seasonal. There are not enough products on the market from April till October. The prices go up and competition is not strong at all. But from October till April the market shrinks, the prices go down and the competition becomes quite tough. There are, however, ways to outsmart the competitors - like starting to make high-seasonal items some months in advance in order to have enough of them on stock when the high season comes. But such moves distract a lot of working capital and increase the inventory dramatically, so practically they are quite difficult to implement. In 2004-2005 we controlled 35-40% of the market, but recently our share decreased due to the fact that the market grew and we failed to keep up with the growth. However, we still control 25-30% of it with a monthly output of about 150 MT of the product Other competitors are smaller companies, none of them selling all over Ukraine. Not one of them exports either.

Additional Details:

• The property is owned.
• The owner is willing to train/assist the new owner.
• The owner is willing to work for the new owner.
• This is not a homebased business opportunity.
• This is not a franchise resale opportunity.
• This is not a distressed business or bankruptcy situation.