KUKE will cover Feerum’s Ukrainian contracts
KUKE will insure receivables from two large Feerum contracts in Ukraine with a total value of nearly PLN 210 million. Insurance of export contract receivables by KUKE was a necessary condition for the entry into force of agreements with a Ukrainian contractor for the supply of grain silo complexes by the Polish manufacturer.
Feerum has signed two contracts with Ukrainian company Epicentr K LLC from Kiev for the sale of grain silo complexes. The first one, worth EUR 35.6 million, provides for the delivery of five silo complexes by 1 October 2019. The second, valued at EUR 13.3 million, is to be finalised within 9 months of receiving the advance payment, with a maximum payment deadline of 30 June 2019. Deliveries are to be made in western Ukraine.
"Ukraine is an important trade partner for Poland. Although the complex economic and political situation makes it a demanding market, it should not be abandoned. Proper preparation for the conclusion and performance of any contract is always important, but in the case of Ukraine it is necessary. Despite the situation of our neighbour, KUKE continues its insurance policy towards Ukraine, enabling Polish exporters to provide consumer and investment goods and services to this market. In the case of Feerum, we decided to insure the company's receivables resulting from contracts performed in Ukraine. Thus, we have fulfilled the condition necessary for the performance of these contracts, enabling them to be financed. The support of Polish exporters is crucial in strengthening their position on global markets. KUKE has the right tools for this," says Janusz Władyczak, CEO of KUKE.
"Winning contracts in the Ukrainian market in co-operation with KUKE will provide Feerum with significant growth. The total value of orders from Ukraine amounts to nearly PLN 210 million. This strengthens our position in the region and Ukraine will soon become a leader among our foreign partners. We hope that this will lead to further orders from Ukraine and further co-operation with KUKE". - said Daniel Janusz, President of Feerum.
"Our strategy of close co-operation with the exporter, mutual trust and discussion of the terms of the contract before it is signed, have once again passed the test. Thanks to this approach, the process runs extremely smoothly, making the exporter more credible in the eyes of the counterparty and giving him an additional bargaining chip during negotiations. We want KUKE to be perceived by Polish companies as a business partner who efficiently and effectively supports their ambitions to expand abroad. The success of Feerum in Ukraine is proof of this" - added Janusz Władyczak.
Daniel Janusz, President of Feerum, and Janusz Władyczak, CEO of KUKE
Obtaining KUKE's insurance cover will enable Feerum to extend its Ukrainian buyer the so-called "supplier credit". In order to sell in the eastern markets, it is necessary to offer the product together with financing. Thanks to the co-operation with KUKE, which offered a 5-year loan insurance, Feerum will be able to finance it with a selected financial institution.
Feerum is one of the largest manufacturers of complex grain silos in Poland, used for drying and storing plant products, such as cereals, legumes, oilseeds and other plants. The main products of Feerum are dryers and silos with instrumentation. The most important customers of Feerum are farms with an area of more than 100 ha, companies buying grain and industrial plants such as: fat plants, mills, plants producing fodder and the biofuel sector. Feerum has a modern plant located in the Legnica Special Economic Zone (LSSE) making components and elements for silos, ensuring high precision and quality of products. The plant is equipped with machines and equipment for sheet metal working meeting the world's highest technical, production and quality standards thanks to innovative solutions and technologies. The Company also conducts its own research and development activities. Since May 2013, the Company has been listed on the main market of the Warsaw Stock Exchange.