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Business news from the Ukrainian League of Industrialists and Entrepreneurs

DARNITSA PHARMACEUTICAL FIRM SEES 48% RISE IN NET PROFIT IN 2014

KYIV. June 15 (Interfax-Ukraine) – Private joint-stock company Darnitsa Pharmaceutical Firm (Kyiv) saw a 47.8% rise in net profit in 2014, to UAH 295.955 million, the company said in an offering memorandum.

The company said that its net revenue grew by 2.5% in 2014, to UAH 1.2 billion, and gross profit rose by 15%, to UAH 813.953 million.

In Q1 2015, net profit more than doubled, to UAH 220.503 million.

As reported, shareholders in Darnitsa Pharmaceutical Firm at a general meeting on April 15 supported the decision of the supervisory board of December 19, 2014 to place name bonds worth UAH 1 billion.

A total of 100,000 bonds will be issued in a book-entry form with a face value of UAH 1,000. The securities will be placed on the PFTS stock exchange (Kyiv) with the participation of underwriter UkrSibbank (Kharkiv).

The company is among the top-ten largest pharmaceutical producers of Ukraine and is one of the top-ten largest suppliers to hospitals.

KYIVSKY CARDBOARD MILL SEES 72.6% RISE IN PRODUCTION IN JAN-MAY

KYIV. June 15 (Interfax-Ukraine) – Kyivsky cardboard paper mill (Obukhiv, Kyiv region), a leader in Ukraine’s pulp and paper industry in terms of production and sales, produced goods worth UAH 1.46 billion in January-May 2015, 72.6% up on the figure for January-May 2014.

According to the UkrPapir association, in January-May 2015, the mill increased production of corrugated cardboard packaging by 10%, to 78.2 million square meters. The mill increased its production of cardboard by 5.3%, to 86,580 tonnes, including a rise of almost 19% in production of commodity cardboard, to 53,780 tonnes and a decline of 11.2% in production of box cardboard, to 32,800 tonnes.

Production of base paper (for sanitary products) decreased by 15.2%, to 28,530 tonnes, while the production of toilet paper fell by 15.4%, to 159.8 million rolls.

In January-May cardboard packaging production in Ukraine fell by 17.7%, to 289.43 million square meters and cardboard and paper output dropped by 12.1%, to 321,620 tonnes.

Kyivsky cardboard paper mill is one of the largest cardboard and paper producers in Europe. It mainly produces goods from wastepaper. Its capacity for processing wastepaper exceeds 850 tonnes a day. The mill exports its products to CIS states and other countries.

MALYN PAPER FACTORY INCREASES PRODUCTION BY 82.4% IN JAN-MAY

KYIV. June 15 (Interfax-Ukraine) – Weidmann Malyn paper factory (MPF, Zhytomyr region), the only producer of electrical insulating board for power engineering machines in Ukraine, increased production by 82.4% in January-May 2015 year-over-year, to UAH 172.2 million.

According to statistics by the Ukrpapir association, cardboard output in kind rose by 31.2%, to 2,100 tonnes, while cardboard production fell by 28.8%, to 2,000 tonnes.

The mill produces electrical insulating board, filter paper, stained base paper and cardboard, as well as a wide range of packaging and special types of paper. Raw materials are supplied from Russia, Austria and Sweden.

In 2014, electrical insulating board exports accounted for almost 70% to Ukraine states and 25% to the CIS countries.

Transformer board is sold in Ukraine (20%), CIS states (30%) and non-CIS states (50%).

As reported, in 2014 Malyn paper factory increased production by 7.1% against 2013, to UAH 217.51 million, while paper production fell almost by 11%, to 6,040 tonnes, transformer board production dropped by 24.4%, to 3,140 tonnes.

Wicor Holding AG (Switzerland) owns a 94.6% stake in Malyn factory.

ENERGOMASHSPETSSTAL TO FINISH SUPPLIES OF EQUIPMENT FOR WIND POWER FARMS TO EUROPEAN SENVION BY AUG

KYIV. June 12 (Interfax-Ukraine) – Public joint-stock company Energomashspetsstal (Kramatorsk, Donetsk region), the owner of which is Russia’s Atomenergomash (Rosatom Corporation), plans to finish supplies of equipment for European Senvion SE by August under a contract signed in spring 2015

The company said on its website on Thursday that the conditions of the contract, which cost is not disclosed, foresee supplies of raw parts of rotor shafts for wind power farms with a total weight of over 900 tonnes.

Today Energomashspetsstal has shipped 36 raw parts for rotor shafts weighing over 300 tonnes, and 66 rotor shafts are being made now.

Energomashspetsstal is the largest Ukrainian producer of special cast and forged products for individual and small-scale production for metallurgy, shipbuilding, energy (wind, steam, hydro, nuclear) and general engineering. It has been part of the mechanical engineering division of Rosatom since 2010.

ISD CONTINUES REALIZING LARGE INVESTMENT PROJECTS AT DZERZHYNSKY STEEL WORKS

KYIV. June 12 (Interfax-Ukraine) – Dzerzhynsky Dniprovsky Steel Works (Dzerzhynsk, Dnipropetrovsk region), part of Industrial Union of Donbas (ISD, Donetsk), continues realizing large investment projects, despite difficulties with financing and a lack of working capital.

The company said in a report, referring to Director General Maksym Zavhorodniy, the pulverized coal injection (PCI) facility is to be tested with the participation of specialists from Luxemburg’s Paul Wurth.

“The issue of automation is with the 400/200 block, as well as the reaching of projected parameters of production per hour. It will take more than one day to resolve the issue, and we will do this using our specialists and involving Danieli’s specialists,” the top manager said.

The slitting line is to be tested in late July, he said.

“As for the reconstruction of the sinter plant: today we have basic engineering, the feasibility study stage, then we are to send the advance payment of EUR 12 million for main technological equipment and detailed engineering. These are large funds for us. We will meet with representatives of Primetals Technologies at the METEC exhibition in Germany. We’ll try to agree how we will buy the equipment,” he said.

Dzerzhynsky Dniprovsky Steel Works produces cast iron, steel, steel roll and FMSGs.

UKRAINIAN METAL PLANTS PLAN TO BOOST CAST IRON OUTPUT BY 24% IN JULY COMPARED TO JUNE

DNIPROPETROVSK. June 12 (Interfax-Ukraine) – Ukrainian metal companies in July 2015 plan to increase steel smelting by 4.5% compared to expected production in June, to 2.3 million tonnes and steel roll production will grow by 5.6%, to 1.9 million tonnes.

According to the materials of the Metallurgprom association (Dnipropetrovsk), the plan for July foresees a rise of 23.5% in cast iron production, to 2.1 million tonnes.

In January-May 2015 cast iron output fell by 30% year-over-year, to 8.363 million tonnes, steel production was down by 28%, to 9.251 million tonnes and steel roll output – by 30%, to 8.005 million tonnes.

In April, 1.927 million tonnes of cast iron was made, as well as 2.177 million tonnes of steel and 1.836 million tonnes of steel roll.

“Since August 2014 this is the largest figures,” Metallurgprom Director General Oleksandr Zrazhevsky said.

Ukrainian iron ore supplies in May grew by 320,000 tonnes compared to April 2015, to 2.3 million tonnes. In January-May 2015, 9.8 million tonnes of Ukrainian-made iron ore was supplied to metal companies.

Imported iron ore suppliers (from Russia) totaled 240,000 tonnes in May, a rise by 200,000 tonnes compared to April. In January-May, imported supplies reached 530,000 tonnes.

Exported iron ore totaled around 4.1 million tonnes in May and 19 million tonnes in January-May 2015.

A total of 283,000 tonnes of scrap metal was supplied to metal companies in May and 1.186 million tonnes in January-May.