On the 28th (local time), iToxi announced that it signed a contract to acquire a 25% stake in Ukraine's only flat glass production plant, 'BFG' (Berezan Float Glass), and a joint investment signing ceremony with one of the top five local construction groups, City One Development (Chairman Mr. Valerii Kodetskyi), in Kiev, Ukraine.
City One Development (hereinafter referred to as City One) is one of the top five Ukrainian construction groups that has emerged by successfully selling six high-end residential town projects in the capital city of Kyiu over the past five years. In particular, the 'Novopechersky Lipki' (Korean version of Tower Palace) recently completed by City One is a high-end residential town located in the heart of Kyiu. It is known to be very popular with politicians and the wealthy, as it consists of 3,800 high-rise apartments on a 25-hectare (approximately 85,000 pyeong) site, as well as a subway, school, and hospital within the complex.
Chairman Kodecki of CityOne received his master’s degree in civil engineering from Kiev Polytechnic University and founded UDP with his partners in 2002, which has grown into one of the top three construction companies in Ukraine. In 2017, he founded CityOne, which has recently become the most successful real estate developer in Kiev. Chairman Kodecki announced that he plans to visit Korea with a Ukrainian government delegation soon to meet with Korean government officials and construction companies.
This BFG equity acquisition agreement is the first construction raw materials joint venture case that ITOXI has been conducting since establishing a local Ukrainian corporation (ITOXI UA) in November 2023. ITOXI completed its corporate due diligence on ‘BFG’ through the global auditing firm Kreston in December of last year, and established a subsidiary, BFG Partners, for local investment projects in Ukraine, and plans to invest in a plate glass factory and locally import and distribute Asian plate glass.
'BFG' is a key project of the "City of Glass" (glass industry cluster), one of the reconstruction project clusters selected by the Ministry of Economy and Reconstruction of Ukraine. The project started in the second half of 2022 and is scheduled for completion by 2027. "City of Glass" is being implemented as a one-stop cluster from plate glass production to processing, coating, and transportation on a 20-hectare site. 'BFG' is located in the center of the "City of Glass" cluster in Berezan City, 70 km east of Kiev, and has currently completed the basic construction of the factory site, establishment permits, and contracts for the supply of electricity and natural gas, which are most important for plate glass production.
ITOXI CEO Jeon Bong-gyu said, “Through this ‘BFG’ equity acquisition contract, we have decided to pursue a full-scale Ukrainian construction raw materials business with our local partner City One,” and “We have agreed to first pursue a distribution business to export Asian plate glass to Ukraine.”
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