Company's History and Development

"NIBULON Ltd." central office is located in Nikolaev City, being a regional centre of the southern part of Ukraine. The region has been traditionally an agrarian one. Historical documents evidence that by the end of the 19th century the region was among the leaders of grain production in the Russian Empire. Besides, Nikolaev is historically situated on the crossing of important sea waterways. On April 10, 1862 the State Council adopted a resolution to open Nikolaev Commercial Port and to set up the customs. Soon the port occupied one of the leading positions in handling cargoes in the state, and Nikolaev became an important grain export centre. In the 1880`s, on average over 23 million poods of grains were annually exported from Nikolaev Port (a "pood" is a Russian unit of weight, 1 pood equals to 16kg). In 1893, a grain elevator was built in Nikolaev Commercial Port. The grains and cereals were among the basic products exported from Nikolaev region. Grain export infrastructure was gradually developing, involving more operators in the grain trade. Wheat exports in bumper-crop years (1905, 1910) reached 50 million poods. Establishment of the Soviet regime and introduction of the planned economy interrupted the formed tendencies in the grain trade development. However, even after 1917 the region retained its importance in the domestic grain production. After the Second World War, the grains produced in Ukraine, including Nikolaev region, played an important role in satisfying the gross demand for grains on the Soviet Union territory. In 1990, Ukraine confirmed its large potential in grain production: over 51 million tons of grains were harvested with an average yield of 3,51 tons per hectare. In Nikolaev region, the yield totaled over 2,7 million tons with an average yield of 3,54 tons per hectare. According to estimations by many experts, the potential of Ukrainian grain production significantly overrides the actual level of 1990. The Company "NIBULON", since the moment of foundation thereof, survived all stages of development of the state, changes in economic and political situation and legislation, having showed its capability of survival and sustainable development.
1991	- Ukraine obtained the status of an independent state. The period of transition to market economy begins. Political and legislative changes make possible development of entrepreneurship in the economy, including the agricultural sector. However, the transition problems affected agriculture: agrarians suffer shortage in supply with agricultural machinery, lack of fuel, sowing seeds and herbicides. The crisis in the field was accompanied by decrease in productivity and total yields of main agricultural commodities. In 1991, 38,674 thousand tons of grains were harvested in Ukraine with a yield of 2,65 tons per hectare, which was 24% off the level of 1990. Under the conditions of the overall economic crisis and gradual decreasing in governmental support to agricultural producers, only efficient and competitive agricultural entities could survive. - Establishment of "NIBULON" Joint Ukrainian-Hungarian-English Agricultural Venture ("NIBULON" AJV). Along with the general director A.A.Vadaturskyy, a Hungarian company "KOMBISEED KFT" and English company "Meridian Commodities Ltd." became co-founders of the Company. The Company name "NIBULON" consists of the first letters in the names of the co-founders` cities: NIkolaev, BUdapest, LONdon. Among the Company`s main activities - production and distribution of hybrid maize and sunflower seeds of foreign origin.
1992	- Ukraine goes out of the USSR rubble zone. The national currency, karbovanets, is introduced.
1992-1993	- "NIBULON" AJV purchases a kolkhoz-owned compound feed plant. On its base "Vradiyevskiy Agricultural Complex" for compound feed and poultry production is founded.
1993-1994	- The Ukrainian economy experiences the period of hyperinflation: inflation indexes reach a record level. The consumer prices index in 1993 made 10256,0. At the same time, the payment crisis aggravated, reaching its peak in February 1994, when the aggregate mutual indebtedness of companies and organizations almost by two times exceeded the gross industrial output in the country. - The economic crisis especially critically affected agricultural sector; the producers suffer dramatic lack of production resources, particularly fuels for performing land works. Under these circumstances, "NIBULON" AJV undertakes important and, at the same time, risky mission - provision for supply of diesel fuels and gasoline, purchased in the foreign market, to local farms.
1994	- "NIBULON" AJV purchases "Sabiko" Joint-Stock Company in order to set up a machinery base there, as well as a machinery-and-tractor station for the acquired agricultural machinery of foreign origin.
1995	- Crisis in the economy lead to contraction of domestic market; food-processing enterprises in agro-industrial complex faced the problem of falling effective demand for their produce. In particular, many oil-extraction plants faced hazard of suspension of production. Most traders export sunflower oilseeds in this period. Unlike these exporters, "NIBULON" AJV exported mostly sunflower oil and meal, thus providing demand to several oil-extraction plants and increasing the share of high-level processing produce in the structure of Ukrainian exports. "NIBULON" AJV performed up to 28% of the total exports of sunflower oil and up to 30% of the total exports of sunflower meal from Ukraine.
1996	- Currency reform is implemented in Ukraine. Ukrainian Hryvna (UAH) becomes the national currency. - On June 28, Ukrainian Constitution was adopted. - Four branches of "NIBULON" AJV are established in Nikolaev and Lugansk regions. On the basis of the former bankrupt collective farm (kolkhoz) in Lidievka village of Nikolaev region, a subdivision of "NIBULON" AJV is created - "Lidiyevskoye" Experimental Research Farm (ERF). Pursuant to the State Deed, 2950 hectares of land were allocated to the farm.
1997	- Five more branches were set up in Lugansk and one in Kharkov regions, which allowed reducing the risks in the Company`s agricultural production. The cattle of Angler (Angeln) breed was brought from Germany for a pedigree cattle multiplication farm.
1998	- Aggravation of the world economic crisis. Default on state treasury bills is announced in Russian Federation. Inflation processes in Ukraine, delays in payments by foreign partners, sharp decline in the prices for agricultural products. However, even under such circumstances the Company succeeded in implementation of its objectives related to development of production capacities, creation of a modern agricultural machinery base and introduction of a complex tillage technology. - For the first time in Ukraine, a loan under support of the International Bank for Reconstruction and Development (IBRD) was granted directly to an agricultural producer - "NIBULON" AJV. The facility amounting to USD 5 million was used to implement the Export Development Project. Within the framework of the Project, agricultural machinery for the total of USD 9 million was supplied. After due completion of the program, IBRD distinguished NIBULON`s work with a diploma for the most successful activities in the framework of the "Export Development Project".
1999	- Three service centers for repair and maintenance of the machinery and tractors were established. A branch in Khmelnikskyy district of Vinnitsa region was established, with the total area of the cultivated land exceeding 2,5 thousand hectares.
2000	- Pursuant to the Decree of the President of Ukraine dd. 03.12.1999 Np.1529/99 "On urgent measures for acceleration of reforms in agrarian sector of the economy", all members of agricultural collective farms were entitled to freely draw away of these enterprises with their land plots (land shares) and property shares and to create, based thereupon, private (private-leased) enterprises, farm businesses and other types of business, based on private property. Instead of collective agricultural enterprises that used to dominate, new organizational and legal forms are established in agriculture that conform to the market model of economy. At the same time, the problem aggravates of low material and technical provision for agrarians. - The former collective farm "Shirokyy" in Snigirevskyy district of Nikolaev region affiliated with "NIBULON" AJV. Trade activities were allocated as a specific program at the Company. - "NIBULON" AJV became the main shareholder of "Starobelskyy Grain Elevator" Joint-Stock Company and a shareholder in "Urozhai" JSC and "Krasnodonskyy Grain Enterprise" JSC.
2001	- The former collective farm "Pribuzhany" in Voznesenskyy district of Nikolaev region affiliated with "NIBULON" AJV. Record yield of grains and oilseeds was harvested: 100 thousand tons. - "NIBULON" AJV becomes the main shareholder of "Kolosovskyy Grain Elevator" JSC, as well as a shareholder in "Popasnyanskoye Grain Storage" JSC.
2002	- Commencement of construction of a transshipment terminal for grains and oilseeds in "Nikolaev" Special (Free) Economic Zone (SEZ). Direct transshipment (cargo transshipment without storage) provides for intake of the grains from trucks and railway wagons and further transshipment/loading onto vessels. - According to Resolution of the Cabinet of Ministers of Ukraine No. 1038 dd. 07/23/2002, the clauses: 63.11.0 "Cargo transport operations" and 63.12.0 "Storage" - i.e. the activities carried out by "NIBULON" AJV Transshipment Terminal - were included in the list of priority economic activities at "Nikolaev" SEZ, as approved by Resolution of the Cabinet of Ministers of Ukraine No. 1175 of 07/26/2000.
2003	- The Company changed its legal organizational form into "NIBULON" Agricultural Limited Liability Company" ("NIBULON Ltd."), which became full legal successor of "NIBULON" AJV. The founders of "NIBULON Ltd." are: Mr. Vadaturskyy, Oleksiy Opanasovych and Mr. Vadaturskyy, Andriy Oleksiyovych, holding respectively 80% and 20% of the Company`s statutory fund. - "NIBULON Ltd." was officially registered as an entity of "Nikolaev" SEZ (Certificate No.7 dd. 05/07/2003). On the Special Economic Zone territory, the Company implements an investment project for construction of the Transshipment Terminal for grains and oilseeds. - The Company obtains loans under inter-bank agreements from financial institutions of Denmark and Canada. - Capacities of direct transshipment were put into operation at "NIBULON Ltd." Transshipment Terminal. In august, the first Cyprian vessel "D.S.Pioneer" was loaded with feed barley at the Terminal. This was the first shipment of Ukrainian grain of 2003 harvest exported to Saudi Arabia. - In December, the second stage of construction of the Transshipment Terminal was put into operation, including 2 grain storage facilities, with capacity of 50 thousand tons of grain each, equipped with all the necessary communication and transport facilities.
2004	- In August, the Cabinet of Ministers of Ukraine adopted decision to establish on the territory of "NIBULON Ltd." Transshipment Terminal a let-pass point through the state border for international maritime cargo communication with twenty-four-hour regime of functioning. - In December, a number of additional objects at the Transshipment Terminal were put into operation, including drying complex made in the USA with capacity 100 tons per hour with a warehouse for floor storage of grains with active ventilation, having capacity of up to 10 thousand tons. - "NIBULON Ltd." Transshipment Terminal won the first place and 1st-rank diploma in the nomination "Industrial Objects" at the contest "Best constructions, built and put into operation in 2004 in Ukraine".
2005	- "Orange Revolution" took place in Ukraine. Mr. V.A.Yuschenko won at the President elections. - On September 14, 2005, solemn installation of additional silos complex with the total capacity of 22 thousand tons, constructed during 88 days, took place at "NIBULON Ltd." Transshipment Terminal. The complex is designed with transport and weighing equipment with productivity of 700 tons per hour, automobile trucks unloading equipment with capacity to unload 20 automobile trucks (of carrying capacity 25 т) per hour. In fact, a new mini-enterprise was created conducting full cycle of cargo handling from intake to loading thereof onto vessels. With putting of the mentioned equipment into operation, the Terminal`s capacity of intake from automobile transport increased to 30 automobile trucks per hour, i.e. to 15 thousand tons per day. - In October, 2005, per recommendation of Ukrainian Grain Association, taking into account high professionalism in grain sector and substantial contribution to development of trade in agricultural produce, performed by "NIBULON Ltd." managed by O.O.Vadaturskyy, - the Ministry of Agro-Industrial Complex of Ukraine awarded a certificate of honour to "NIBULON Ltd." for the 1st rank in the nomination "Grain Trader of the Year". - On November 17, 2005, "NIBULON Ltd." won at Ukrainian contest-exhibition "Best Domestically Produced Commodity of the Year" and was distinguished with a diploma in the nominations "Construction" (Construction and provision for functioning of the transshipment terminal for grains and oilseeds with application of innovation technologies) and "Transportation Services" (Transportation services of transshipment of agricultural produce). This contest was held in the framework of the national exhibition program "Barvysta Ukraina" under support of the President of Ukraine.
2006                                                                                                     2007                                                                                                                                    2008	- House of Representatives of the USA Congress approved cancellation of applicability of Jackson-Vanik Amendment to Ukraine, thus evidencing acknowledgment of Ukraine as equitable player in the world market. - In May, management of the Company resolved to establish Reshetilovskyy branch of "NIBULON Ltd." in Poltava region and Zolotonoshskyy branch in Cherkassy region and to construct on the territory thereof complexes for intake, drying, storage, and shipment of grains. - Based on the results of work in 2005/06 marketing year, "NIBULON Ltd." was again acknowledged as "Grain Trader of the Year" in Ukraine. In this period, the Company provided for exports of more than 1,7 million tons of grains. - On 11.08.2006, construction of fully automated and mechanized elevator in Reshetilovskyy branch of "NIBULON Ltd." (Poltava region) was started. The construction of the elevator complex was completed within less than three months, and on 07.11.2006 a solemn opening thereof was held. The elevator complex has the capacities of: grain drying on modern USA-made equipment with productivity 3 thousand tons per day, grain cleaning with productivity 2 thousand tons per day, loading onto railway transport with productivity 3,5 thousand tons per day. The capacities of the complex are designed with conveyor transportation systems, electronic weighing equipment; a laboratory with modern European equipment for agricultural produce quality analysis was created. Already after several days after the opening, the second stage of construction of the elevator complex was started, which will result in increase of its total storage capacity up to 25 thousand tons. - Simultaneously, large construction is conducted in the branches "Bashtanskyy", "Snigirevskyy", "Vradievskyy" (Nikolaev region), and "Khmelnikskyy" (Vinnitsa region). Generally, over 100 thousand tons of storage capacities are planned to be put into operation. Creation of additional capacities for intake, storage, and shipment of grains enlarges the capability of "NIBULON Ltd." to form high-quality grain consignments, and allows local producers to collaborate directly with grain exporters, which ensures substantial increase in prices received by farmers for their produce and opens wide perspectives of grain sector development in the regions of "NIBULON Ltd." activities. - On December 5, "Nibulon Ltd." celebrated 15 years since the Company foundation. The Company solemnized its anniversary on December 8, in Nikolaev Regional Palace of Culture together with its friends, partners, and guests, both Ukrainian and foreign. The celebration ended with a concert of Ukrainian and Nikolaev entertainment stars and a firework. February 2007. On the results of Nikolaev Minicipal Program “Person of the Year” General Director of NIBULON LTD O.O. Vadaturskyy was recognized “Citizen of the Year – 2006” in nomination “Maecenas of the Year” March 2007. General Director O.O. Vadaturskyy was announced the winner of the international contest “Businessman of the Year - Ukraine 2006" in nomination "Master of Business". The given contest was carried out by auditing company "Ernst and Yang" engaged the leaders of "European Bank for Reconstruction and Development" in Ukraine, "London Stock Exchange" in CIS, "Ukrainian Union of Industrialists and Businessmen" and other Ukrainian leading companies and organizations in jury membership.    - Iin Poltava region there was established a new branch “Suhorabivs’ka”. More than 1500 hectares of the land are cultivated here. April, 2007. For the first time within the limits of the International conference “Black Sea Grain” there was held business tour to the branches of NIBULON LTD. The biggest Ukrainian and foreign banks, leaders of sea ports, trading, insurance and consulting companies were among the participants of the conference. Within the limits of the business tour the participants visited the transshipment terminal of NIBULON LTD and “Prybuzhanivs’ka”, “Vradiyivs’ka”, “Lidiyivs’ke” branches and AC “Vradiyivs’kyy”. There was carried out renewal of farm machinery. In a solemn atmosphere at “Snigurivs’ka” branch the best machine-operators of NIBULON LTD were handed over keys to new combine harvesters.             10 combine harvesters “CASE-2388”, grain and corn reaping-machines, 5 shredding- mulching machines, 17 tractors “Belarus 920”, 4 machines for fertilizer application, necessary towed equipment for machinery of foreign and domestic production  were bought for company’s branches.             June 2007   The President of Ukraine Victor Yushchenko visited Mykolayiv region. During his visit to Snigurivs’kyy district Victor Andriyovych was on the fields of “Snigurivs’ka” branch of NIBULON LTD.  The President pointed out good condition of crops. Significant distinction of fields of the branch in comparison with the fields of Snigurivs’kyy district is possible because of strict observance of agro technologies, which have been applying here from the moment of its (branch) establishing.   - From May 31 till June 2 there was held business tour “Ports of Ukraine - 2007” on the route from Bol’shaya Odessa to Nikolaev (south regions of Ukraine). Business tour was organized by PA “APK Inform”. NIBULON LTD received its participants on the territory of its own transshipment terminal. Among the participants were representatives of grain trading companies from Kazakhstan (“Golden fields”, “Holding Kazexportastyk”, “Prodovol’stvennaya kontraktnaya corporation”, “C.T.K. company”, “GK Sarybai”), Russia (“Russkoye zerno”), France (France Export Cereals), Egypt (AL ASSYL MILLS CO.).             Solemn putting into operation of the second (the last) turn of complex of receiving and shipment of grain of “Reshetilovskyy” branch of NIBULON LTD. As a result of finishing of construction of the second turn the capacity of grain storage increased on 27.5 thousand tons, and its total storage capacity up to 37.5 thousand tons (in 7 holding capacities). Modern USA-made equipment used on elevator, allows to dry grain with productivity 2.5 thousand tons per day, grain cleaning with productivity 2 thousand tons per day. In Khmel’nitskyy region there were concluded contract of tenancy of lands on area more than 5 thousand hectares and branch “Kamenets-Podol’skyy” was established. August 2007.On the results of the competition for the best facilities and premises built and put into operation in 2006 on the territory of Ukraine, organized by the Ministry of Construction, Architecture, Housing and Communal Services of Ukraine. NIBULON LTD took the 3rd place in nomination “Industrial Facilities” and diploma of the 3rd degree for the project “Development of the point of receiving and shipping of grain of “Reshetilovskyy” branch” in Poltava region and for complex on grain drying and cleaning of AC “Vradievskyy” in Nikolaev region. Management of the Company resolved to establish branch “Chigirin” of "NIBULON Ltd." in Cherkassy region. The area of cultivated in this branch lands is more than 4400 hectares. September 2007. Opening of new complex on receiving and storage in Voznesenskoe village of Zolotonosha district ( Cherkassy region). Zolotonosha elevator is a modern automated enterprise, equipped with new highly productive equipment on drying, cleaning and transportation of grain. Capacity of dryings is nearly 2.5 thousand tons per day.  Total capacity of elevator is 66 thousand tons. Total value of construction is 10 million US dollars.  October 2007. NIBULON LTD for already the 3rd time took the first place among the Ukrainian exporters of grain and was rewarded with diploma of Ministry of Agrarian Policy of Ukraine in nomination “Grain Trader of the Year”. In 2006/2007 MY the company provided with export shipments of more than 1.7 million tons of grain. November 2007. The President of Ukraine Victor Yushchenko conferred the title of the Hero of Ukraine to Mr. O. Vadaturskyy for unique personal contribution to consolidation of agricultural complex potential, organization and ensuring of steady high performance in manufacture of agricultural products and development of social sphere. December 2007. NIBULON LTD was recognized the winner of the National contest “Philanthropist of the Year” in nomination “Philanthropist of the Year in Nikolaev Region”. The works on making of contracts of tenancy of land in Sumy, Zhitomir and Khmel’nitskyy regions started.   February, 2008  On the results of Mykolayiv Minicipal Program “Person of the Year” General Director of NIBULON LTD O.O. Vadaturskyy was recognized “Person of the Year -2007”. The training centre started its work at the transshipment terminal of NIBULON LTD. March, 2008 The President of Ukraine Victor Yushchenko visited “Zolotonis’ka” branch of NIBULON LTD. There was carried out renewal of farm machinery. At “Snigurivs’ka” branch General Director O.O. Vadaturskyy handed over keys to 12 new tractors “CASE” to the best machine-operators of NIBULON LTD. April, 2008 Oleksiy Vadaturskyy together with leading managers and businessmen of Ukraine accompanied the President of Ukraine Victor Yushchenko during the official tour to Libya. Within the framework of the Fifth International conference “Sea Grain 2008” for the second time there was business tour to branches of NIBULON LTD.  The guests visited “Zolotonis’kyy” (Cherkasy region) and “Reshtylivs’kyy” ( Poltava region) elevators and also fields of “Chygyryn” branch. There was a solemn opening of construction of the new elevator “Smotrych” of NIBULON LTD in Kamenka village of Kamenets’-Podil’s’kyy district of Khmel’nyts’kyy region. At the end of construction the capacity of elevator will be 66 thousand tons of grain. May, 2008 The representatives of the World Bank in Ukraine, Moldova and Byelorussia visited “Vradiyivs’ka”, “Zolotonis’ka” branches and LLC “AC Vradiyivs’kyy”. The purpose of their visit was analysis of production potential of Ukrainian agricultural producers.  In Zhytomyr region there were established two new branches of NIBULON LTD. They are “Bystryts’ka” and “Chudnivs’ka”. June, 2008 The Decree of the President of Ukraine No 569/2008 “About Conferring of the State Award in Sphere of Architecture 2008” To confer the State Award for the architecture of the transshipment terminal of NIBULON LTD in Mykolayiv city on Vadaturskyy Oleksiy Opanasovych  - the head of the author’s collective, general director of NIBULON LTD, Besedin Sergiy Vasylyovych, Bila Raisa Mykolayivna, Volkova Galina Volodymyrivna – engineer- constructors, Dyka Valentyna Tymofiyivna  - master of green economy, Zverzhyns’ka Nataliya Anatoliyivna  - mechanical engineer, Kanivets’ Lyudmyla Sergiyivna, Moskalenko Victor Antonovych – architects. On the base of “Snigurivs’ka” branch and transshipment terminal of NIBULON LTD there was conducted the first specialized conference of grain producers of Ukraine organized by Canadian-Ukrainian Grain Project together with NIBULON LTD.   The renewal of farm machinery is going on.  For effective harvesting there were bought 9 American combines “Massey Fergusson”.
Oleksiy Opanasovych Vadaturskyy has been General Director of "NIBULON Ltd." since the foundation thereof.