A Russian attack on 28 August completely destroyed the «Khortytsia» distillery in Zaporizhzhia, Global Spirits reported. The company recorded at least four direct hits, following which the fire raged for around three hours. The production complex cannot be rebuilt, and the loss of finished products is estimated at 3–4 million bottles.
Briefly about the main points
- Global Spirits has announced that its Zaporizhzhia plant has been completely destroyed.
- The buildings and production equipment sustained critical damage.
- Part of the stock has been burnt; the rest is to be disposed of.
- The company will determine the total amount of the losses following an assessment of its assets.
The fire caused damage to the production premises and equipment
Press office statement on the closure of the company Global Spirits NV Business reported. According to the holding company, the fire and explosions caused critical damage to the production facilities and equipment.
Head of the Zaporizhzhia Regional Military Administration Ivan Fedorov Earlier this morning, there were reports of an attack on one of the city’s industrial sites, causing damage to the premises and a fire. Details regarding the factory were released by the company itself.
The value of finished stock is estimated at hundreds of millions of hryvnias
The company lost around 3–4 million bottles of alcoholic drinks. Some of the stock was burnt, whilst the rest melted and must be disposed of.
According to Global Spirits, the average price of a bottle is approximately 100 UAH. Therefore The estimated value of the finished products destroyed amounts to 300–400 million UAH.
This calculation relates solely to stock levels and does not include buildings, production lines, equipment, raw materials or other assets. The holding company has not yet published a consolidated estimate of the losses.
The company needs to assess the loss of one of its largest sites
The distillery, which opened in Zaporizhzhia in 2003, was one of Global Spirits« largest production sites, alongside the Odessa Cognac Distillery. It produced, amongst others, »Khortytsia«, »Morosha«, »Pervak«, »Medova«, »Pshenichna Slioza’ and Gold Ukraine.
The company has not yet announced whether it will relocate production to other sites. A full assessment must include the damaged buildings, equipment, stock and other assets of the business.
In July, a Russian strike also destroyed Global Spirits’ main stock of finished products. Taken together, these losses could represent a simultaneous blow to both production and distribution; however, the holding company has not publicly announced any plans regarding supplies or exports.
