OREANDA-NEWS. December 02, 2009. According to the management of the Sugar union Ukrros < UROS UK U/R >, the Company will invest around UAH 60mn in its plants modernization, while UAH 9-10mn is to be borrowed from State-owned Ukreximbank. The modernization will be mainly about a replacement of natural gas by coal in the production process.

Millennium Capital sees the news to be positive for the Company, since a high cost of sales (99% COS margin in 2008) is the main reason why the Company is making losses. Moreover, the minimization of natural gas consumption will enable the Company to avoid the risks of natural gas price hikes, which is expected to rise from 20% to 40% (by different estimations) in 2010.