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Business news from the Ukrainian League of Industrialists and Entrepreneurs

GOVERNMENT APPROVES LIST OF 23 CITIES, COMMUNITIES FOR OPENING OF ADMINISTRATIVE CENTERS

KYIV. Oct 13 (Interfax-Ukraine) – The Cabinet of Ministers has approved a list of 23 cities and united territorial communities in which it is planned to open centers on administrative services in the “Transparent Office” format.
An Interfax-Ukraine reporter said that the respective decision was made at a government meeting on Wednesday, October 11.
The list includes such regional centers as Kyiv, Odesa, Kharkiv, Dnipro, Lviv, Kropyvnytsky, Zhytomyr, Rivne, Cherkasy, and Chernihiv, as well as in the towns of Bucha, Druzhkivka, Kamiansk, Kryvy Rih, Rubizhne, Sloviansk, and five communities in Ternopil region – Baikivtsi, Skala-Podilska, Velyki Hai, Velyki Dederkaly, and Melnytsia-Podilska.
The government recommended that local government agencies determine the premises for “Transparent Offices,” taking into account the requirements of accessibility for persons with disabilities, and ensure the development of design estimates for repair work in the premises provided.
The creation of centers for the provision of administrative services is carried out on co-financing terms, with at least 10% of expenditures financed from local budgets.

NOVA POSHTA SEES 23% RISE IN DELIVERIES IN Q3 2017

KYIV. Oct 13 (Interfax-Ukraine) – Nova Poshta (Kyiv) increased deliveries by 23% in the third quarter of 2017 year-over-year, to 33 million deliveries.
“In January-September 2017, the number of deliveries by Nova Poshta was almost 100 million and approached the results of the entire 2016,” the company’s press service said on Thursday.
The company is preparing for the launch of the national terminal.
“The largest parcel sorting station with modern powerful equipment in Ukraine would allow speeding up parcel processing and delivery. It is planned that the terminal will start operating by the end of this year,” the press service said.
Nova Poshta, founded in 2001, is the leader in the local delivery market. The company’s network consists of more than 2,300 depots, 1,400 pick-up and drop-off points and 37 sorting and loading terminals throughout Ukraine. In 2016 Nova Poshta delivered more than 110 million items.

UKRAINE’S FOOD AUTHORITY INVITES VIETNAMESE COLLEAGUES TO INSPECT BIOSECURITY PROCEDURES FOR WHEAT EXPORTS

KYIV. Oct 13 (Interfax-Ukraine) – Ukraine’s Service for Food Safety and Consumer Protection has invited the plant protection department of Vietnam to visit Ukraine and study the biosecurity procedures for exporting wheat.
The Ukrainian authority said in a press release that the issue was discussed at a meeting of the Ukrainian-Vietnamese intergovernmental commission for trade, economic, scientific and technical cooperation.
The sides discussed the state and prospects for Ukrainian-Vietnamese cooperation in agriculture and pointed out the importance of its further development.
The commission members discussed the placing of Ukraine to the list of countries that have the right to export crops to Vietnam.
The special attention was paid to restoration of exports of Ukrainian wheat to the country.
“The fruitful work of the intergovernmental commission gives grounds to count on settling all disputable issues in bilateral trade between the countries by the end of this year,” Head of Ukraine’s Service for Food Safety and Consumer Protection Volodymyr Lapa said.
He said that Ukraine is ready to apply the reciprocity principle in exports and imports of agricultural products and food.

KERNEL TO INVEST $130 MLN IN CONSTRUCTION OF OILSEED CRUSHING PLANT IN KHMELNYTSKY REGION BY 2020

KYIV. Oct 12 (Interfax-Ukraine) – Kernel, a large agroholding in Ukraine, seeks to invest $130 million in construction of an oilseed crushing plant in Khmelnytsky region.
The company said in a press release on Wednesday that the commissioning of the plant is scheduled for 2020.
The installed processing capacity of the plant will be 1 million tonnes of sunflower seeds per year.
“The construction site is in the western part of the country, near Starokonstiantyniv in Khmelnytsky region, next door to Kernel’s silo… The project will be financed from the Eurobond proceeds raised in 2017,” the company said.
The memorandum on construction of the new plant was signed on October 11 by representatives of the company and the governor of Khmelnytsky region.
Kernel said that Western Ukraine has a significant potential to increase sunflower seed production.
The new plant will be the most modern plant in Ukraine in its segment. The enterprise will boost tax payments to the local budget, create new jobs and allow local companies to participate in tenders for providing labor and services, Kernel said.
Kernel is the world’s largest producer and exporter of sunflower oil, the leading producer and supplier of agricultural products from the Black Sea region to the world markets. The vertically integrated structure of the company is built on closely interrelated business segments: production, export and domestic sales of sunflower oil, plant growing, grain exports, providing grain storage and transshipment services at elevators and port terminals. Since 2007 the company’s shares have been traded on the Warsaw Stock Exchange (WSE).

HARP SIGNS ONE-YEAR CONTRACT TO SUPPLY BEARINGS TO BULGARIA’S METALAGRO AD

KYIV. Oct 12 (Interfax-Ukraine) – Kharkiv Bearing Plant (HARP), part of UPEC industrial group, has signed a one-year contract to supply bearings to the largest manufacturer of agricultural machinery in Bulgaria – MetalAgro AD.
According to the press release of the HARP, earlier MetalAgro AD used HARP AGRO bearings with a tight X-SHIELD sealing sold via HARP dealers.
“For several years of operation of agricultural machinery with the off-hand HARP AGRO bearings with a unique sealing, Bulgarian farmers have assessed their quality and reliability. Today, MetalAgro AD has decided to install only HARP products to the entire range of agricultural machinery and work with us directly, without intermediaries,” Director of the bearings sales department of UPEC-Trading Vitaliy Buhrov said.
Under the contract, HARP will supply components in the amount corresponding to the need for bearings of the entire annual number of agricultural units sold by MetalAgro AD.
At the moment, the first batch of HARP bearings is already being prepared for shipment to Bulgarian partners.
These are HARP AGRO bearings with a tight X-SHIELD sealing and new bearings of UC Series (similar to YAR), ES (YET) and EX (YEL).

UKRAINIAN SPACE INDUSTRY ENTERPRISES LOADED BY A THIRD IN H1 2017

KYIV. Oct 12 (Interfax-Ukraine) – The capacity utilization of enterprises operating in the Ukrainian rocket and space industry in the first half of 2017 amounted to 30.9%, or 3.2% less than in the same period in 2016, the State Space Agency of Ukraine (SSAU) has told Interfax-Ukraine.
SSAU said in an official response to the agency that the biggest difficulties with capacity utilization in the first half of the year were faced by the Makarov Pivdenny Machine Building Plant (Dnipro), which was only 12.4% loaded, and also the state-run Arsenal Plant – 15.2%.
At the same time, the volume of production (in comparative prices) of enterprises operating in the sector in January-June 2017 grew by 35.1% year-over-year, and sales rose by 37.9%. Production and sales in the first half of the year amounted to about UAH 1.87 billion, and gross output reached about UAH 2.23 billion, SSAU said.
In the total volume of sales, the share of exports was 60.5%, or 39.7% than in January-June 2016. Export growth was provided by export-oriented enterprises of the industry. It was 177.6% at the Makarov Pivdenny Machine Building Plant, 83.6% at the Arsenal Special Device Production State Enterprise (Kyiv), 33.4% at Pavlohrad Chemical Plant (Dnipropetrovsk region), 25.1% at Pivdenne Design Bureau (Dnipro), and 18.7% at PJSC Hartron (Kharkiv).
In the structure of exports, 92.2% of products were supplied to the EU countries, the United States, and other countries. The share of exports to Russia shrank by 17.2%, to 7.6%.
SSAU currently manages 26 enterprises and organizations of the space industry. The state budget for 2017 envisages UAH 2.91 billion for financing the space industry, or 14.2% less than in 2016. In the total amount of financing, 61.5% of the funds from the state budget’s general fund are envisaged for the fulfillment of debt obligations on previously attracted loans for the implementation of international industry projects.