Ukraine’s State Agency Aims to Privatize Confiscated Packaging Factory Once Owned by Russian Oligarch – Sky Bulletin

The Ukrainian government, through the State Property Fund (SPFU), is initiating the privatization process for the PentoPak packaging manufacturing facility, which was once under the ownership of Russian-Greek oligarch Ivan Savvidi. This action comes as a consequence of Savvidi’s support for Russia’s military aggression. “Investors will definitely find this asset appealing. This isn’t just any business, but a turn-key operation nestled within Ukraine’s flourishing food sector,” emphasized Vitaly Koval, who leads the SPFU. PentoPak is renowned for its specialization in producing packaging solutions, particularly for the meat and sausage segments of the food industry. Featuring a portfolio of multi-layer synthetic heat-shrinkable casings, the firm is recognized for the application of cutting-edge manufacturing techniques. Ambitions for PentoPak include branching out into additional market segments such as dairy product packaging, fish processing, and feed for livestock. PentoPak’s distribution network isn’t limited to local usage in Ukraine but extends to clients across 30 different nations. The company’s manufacturing hub is strategically positioned in the vicinity of Kyiv.

Why is the government selling the PentoPak plant?

The Ukrainian government is selling the PentoPak plant because it was previously owned by Ivan Savvidi, a Russian-Greek oligarch who supported Russian aggression, leading to the asset’s confiscation. Its privatization is being pursued as a part of Ukraine’s response to the conflict and to attract investment.

What does PentoPak specialize in?

PentoPak specializes in the production of multi-layer synthetic heat-shrinkable casings used in packaging for the meat and sausage industry. The company is also looking to expand into packaging materials for the dairy, fish processing, and animal feed industries.

Where are PentoPak’s products distributed?

PentoPak’s products are not only used in Ukraine but are also exported to dozens of companies in 30 countries around the globe, showcasing its international reach.

Where is the PentoPak factory located?

The PentoPak production facility is located near Kyiv, Ukraine, which offers advantageous logistics for both local and international business operations.

The privatization of PentoPak represents a strategic decision by the Ukrainian government to leverage assets confiscated from individuals aligned with adversarial forces. Vitaly Koval, the head of the SPFU, is optimistic about the investment opportunity this presents, highlighting PentoPak’s established role within a key industrial sector and its potential for expansion. With the backing of state authorities and the company’s significant market presence, the privatization of the PentoPak plant is set to ignite interest among investors looking to capitalize on Ukraine’s industrial growth and resilience.