Creation of AdBlue production

Investment amount, USD
Region Dnipro
Sector Light industry
Location Dnipro
Opportunity equity participation; creation of a joint enterprise; grant funds
Share project
Creation of AdBlue production

Production of AdBlue diesel engine additive in accordance with VDA (German Association of the Automotive Industry) technologies.

Private enterprise “MIM”, founded in 2002, acts as a partner to support the German company “BASF-CHEMETALL” in Ukraine, which is an extraordinary member of the VDA and holds a license for the AdBlue brand. Currently, PE “MIM”, is looking for a partner to organize the production of AdBlue. This innovative product is the embodiment of consistently high quality and is seen as a strategic step towards environmental protection and the introduction of advanced technologies in the transport industry.

The line’s capacity will be: 9 thousand liters per hour (with an 8-hour working day – 1.3 million liters per month or 16 million liters per year).

After the launch of AdBlue production, PE “MIM” also plans to open a second production facility: plastic containers of 5 liters, 10 liters, 20 liters, 1000 liters IBC cube.

Project goals:

  • reduce the environmental impact of motor vehicles by effectively reducing NOx emissions and contributing to cleaner air;
  • growing demand for AdBlue due to strict environmental standards and vehicle emission requirements creates a promising market for the production;
  • the use of advanced technologies in production guarantees high quality and competitiveness of the products;
    AdBlue production can become a part of the green energy strategy by using energy-efficient and environmentally friendly technologies;
  • the project is orientated towards the Ukrainian consumer and for export;
  • creation of additional 9-15 workplaces.

Project total cost: $341.3 thousand, including:

1. fixed assets:

  • For purchase of equipment from the EU: $ 177,1 thousand.
  • For purchase in Ukraine: $ 99,5 thousand.

2. current assets: $34.1 thousand.

Company resources for project implementation: $120 thousand.

Estimated payback period of the project: 30-36 months.

Duration: 3 years

Facilities: For the production, there will be rented premises in Dnipro with an area of 500 m².

Communal services and requirements:
Water – 40,000 m³/month.
Electricity – 8,000 kW/month.

Transport infrastructure: Three different types of transport will be purchased to ensure timely transport.

About PE “MIM”:

  • Since 2002, MIM has been a leading specialist in the Ukrainian market in the field of implementing technologies for chemical treatment of metal surfaces before painting (degreasing, phosphating, zirconium passivation), pipe and wire drawing, hot-dip galvanising, flaw detection, rust and old paint removal, etc;
  • Since 2011, MIM has been the only official distributor in Ukraine of Basf-Chemetall (formerly Chemetall), which is a leader in its field.
  • MIM has partnerships with a number of other European companies in the field of metalworking and related equipment – TIB, HERWIG, B4S, UMICORE.

AdBlue is an additive for diesel vehicles that reduces nitrogen oxides in diesel engine exhaust by 90%. The use of AdBlue is required by European environmental standards Euro 4-5-6 and is mandatory for diesel vehicles that meet EU standards.

Last year, the Ukrainian market for this reagent more than doubled (+108%) to 48.9 million liters. The Ukrainian AdBlue market is estimated at UAH 960 million per year. Currently,  three companies in Ukraine officially produce AdBlue in accordance with VDA requirements.

Nowadays, AdBlue is extremely important for military equipment, as it is the key to the uninterrupted movement of equipment at the frontline, which ensures the quality of dozens of modern military vehicles.

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