Roshen to reduce production in 2009 at most 10%

Kyiv, March 3 (Interfax) - Roshen, Ukraine's biggest confectionary concern, will not allow production to fall more than 10% in 2009, to 324,000 tonnes, company President Vyacheslav Moskalevsky said at a press conference at Interfax's office in Ukraine on Tuesday.

"Our goal is not to drop more than 10% in natural terms," he said. The 10% figure is contained in the pessimistic scenario, he said. The exchange rate instability makes it difficult to forecast production volumes in value terms, he said.

Roshen's currently has approximately 24% of the market in confectionary, including 20% in the chocolate segment, 30% in the individually wrapped chocolate candy segment, 60% of the biscuit segment and 70% of the caramel segment.

Roshen includes confectionary plants in Kyiv, Vinnytsia, Mariupol, Kremenchuk, the Bershadmoloko dairy plant, and confectionary plants in Lipetsk (Russia) and Klaipeda (Lithuania). Roshen exports products to Russia, Kazakhstan, Uzbekistan, Moldova, Estonia, Latvia, Lithuania, the United States, Canada, Germany, Israel and other countries.

Production increased 3% to 360,000 tonnes in 2008. Sales rose 31% to over $850 million.