Ukrainian oil company Korolivskyi Smak halts production amid Russian attacks and power cuts

The company Viktor & K (Korolivskyi Smak) is halting production and ceasing the procurement of oilseeds due to power supply issues and military threats.

Source: press service for Korolivskyi Smak

Details: The company "announces a forced suspension of production, a complete cessation of procurement of all types of oilseeds, and staff reductions".

The reasons for the decision are the critical power supply situation and the constant threat of missile and drone strikes.

"The hardest part in this situation is that we are forced to leave people without work. Many have worked with us for years, and we understand that behind every employee stands their family," the company noted.

The company explains that constant power outages prevent stable operation of the plant, and the threat of attacks creates additional risks for the employees.

Currently, the company is completing the dispatch of finished products and halting production processes.

For reference: Viktor & K is a company based in Kirovohrad Oblast specialising in the production of food products.

Under the Korolivskyi Smak trademark, the company produces and sells sunflower oil, mayonnaise, ketchup and other products.

In 2024, Korolivskyi Smak built a new plant for processing rapeseed and sunflower, with a total processing capacity of 600 tonnes per day.

Prior to that, in 2023, Viktor & K completed the construction of a rapeseed processing plant.

It was also reported that the company plans to build a biomass cogeneration thermal power plant with an electrical capacity of up to 8.5 MW for its own needs, without transmitting electricity to external grids.

Background:

• Kernel, Ukraine's largest producer and exporter of sunflower oil, announced the suspension of operations at all its oil extraction plants due to massive Russian strikes on food industry facilities.
• Delta Wilmar Ukraine has halted operations at all production facilities, including its oil extraction plant in Odesa Oblast. In Dnipro, the Alef Corporation's Potoky plant has temporarily suspended its operations.

• Earlier, the Ukroliyaprom association stated that Russia was deliberately striking Ukraine's oil and fat industry facilities in order to destroy this export-oriented sector.
• It was previously reported that Ukraine was unable to process the entire oilseed harvest: the total nameplate processing capacity in Ukraine is about 23 million tonnes, but actual processing stands at only about 17 million tonnes.
• Since the beginning of the full-scale war, 10 new oil plants have been built in Ukraine, yet the existing company capacities are not fully utilised.

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