Business news from Ukraine

STATE-OWNED SPETSTECHNOEXPORT PERFORMS CONTRACTS FOR $120 MILLION IN 2017, INCLUDING 80% EXPORT CONTRACTS

State-owned enterprise (SOE) SpetsTechnoExport performed foreign-economic defense contracts worth $120 million in 2017, and 80% of the deals were related to the export of modern weapons and equipment, the company’s press service has reported.
According to the report, 10% of export contracts relate to R&D in Ukraine in order to create innovative defense technologies for foreign partners purposes.
The press service said that in the past years the half of export turnover of the SpetsTechnoExport is the export of defense products to India. The company fulfilled export contracts with India for the total amount of $65 million, and a year earlier it completed the implementation of the bulk of the multi-year contract for upgrading An-32 aircraft for Indian Air Force worth $400 million.
During 2017, SpetsTechnoExport significantly intensified cooperation with Indonesia, the Kingdom of Saudi Arabia, Kuwait, Egypt, Azerbaijan, Turkey and Georgia, the company said.
The press service said that in 2017 SpetsTechnoExport was registered at the NATO Suppliers Base (NSPA) that opened up new opportunities for expanding cooperation with Western partners. The company became the first Ukrainian company to win an international public tender under the GPA rules, according to which SpetsTechnoExport will supply components to T-72 tanks to one of the EU countries.
The company said that Import contracts for the needs of Ukrainian law enforcement agencies continue to be deployed in priority regime. Supply of small arms and ammunition, sights and night vision devices, radio communication systems, systems of individual protection were the main areas of import activity of SpetsTechnoExport in 2017.
The press service told Interfax-Ukraine that at present, the SpetsTechnoExport’s portfolio of orders is estimated at some $500 million. Today the enterprise is involved in defense cooperation with customers from over 30 countries.
SpetsTechnoExport is among Ukraine’s leading exporters of weapons and special purpose equipment. Since December 2010, it has been part of the Ukroboronprom state concern.

RUBIZHNE CARDBOARD MILL SEES 2.2-FOLD RISE IN NET PROFIT

Public joint-stock company Rubizhne cardboard packaging mill in Luhansk region, one of Ukraine’s largest cardboard packaging producers, tentatively saw UAH 322.35 million in net profit in 2017, which is a 2.2-fold rise year-over-year.
According to an announcement on holding a general meeting of shareholders scheduled for April 26, undistributed profit as of early 2017 was UAH 711.52 million (UAH 350.48 million a year ago).
As reported, in 2016, the mill saw UAH 147.44 million of net profit compared with UAH 284.84 million of loss a year ago.
The mill said that its current liabilities fell by 34%, to UAH 626.94 million, while noncurrent liabilities soared 2.4-fold, to UAH 487.26 million.
Total bills receivable grew by 23.7%, to UAH 641.2 million, and assets rose by 13.6%, to UAH 2.253 billion.
Net worth as of early 2018 totaled UAH 1.139 billion, including UAH 16.75 million of the charter capital.
The Rubizhne cardboard packaging mill has worked on the packaging market since 1991, and specializes in the production of components for corrugated cardboard (cardboard and fluting) and corrugated cardboard boxes.
Its most important customers are large confectioneries, juice and tobacco producers.

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KYIVSKY CARDBOARD PRODUCER HAS 1.5-FOLD RISE IN PROFIT IN 2017

Kyivsky cardboard paper mill (Obukhiv, Kyiv region), a leader in Ukraine’s pulp and paper industry in terms of production and sales, saw UAH 348.7 million in net profit in 2017, which is 49.6% up on 2016. According to an announcement on holding a general meeting of shareholders scheduled for April 25, undistributed profit early this year reached UAH 1.156 billion (UAH 807.09 million a year ago).
According to a draft decision of the shareholders it is planned not to pay dividends for 2017.
As reported, in 2016, the mill saw an 89% rise in net profit, to UAH 233.13 million.
According to the report, current liabilities of the mill grew by 15% in 2017, to UAH 1.863 billion and noncurrent liabilities fell by 23.5%, to UAH 146.45 million.
Total bills receivable as of January 1, 2018 totaled UAH 790.22 million, increasing by 31.5%. Assets grew by 19.7%, to UAH 3.326 billion.
Net worth as of early 2018 was UAH 1.317 billion, including UAH 10 million of the charter capital.
Kyivsky cardboard paper mill is one of the largest cardboard and paper producers in Europe. It employs almost 2,200 people. It sells produce to almost 700 companies in Ukraine, some CIS member states and the rest of the world. In 2017, the mill saw a 14.8% rise in production from 2016, to UAH 4.224 85 million.

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KUSTO AGRO TO SPEND $800,000 ON NEW AGRICULTURAL EQUIPMENT

Kusto Agro plans to spend $800,000 on purchase of new agricultural equipment by July 2018. According to information on the group’s website, in particular, it plans to buy two Case Tiger Mate cultivators, two John Deere tractors, a Kinze seeder with additional equipment, trailers, sunflower harvesters.
“Every year we update and expand our machinery. The enterprise is not small, therefore we cannot completely renew the entire fleet of vehicles in one season. But we are gradually expanding it,” Director of Kusto Agro Farming Volodymyr Sery said.
“Kusto Agro is part of Kusto Group international holding (Singapore), which develops business in oil, energy, agricultural, construction and other industries. Kusto Group implements projects in Russia, Kazakhstan, Ukraine, Vietnam, China, Turkey, and Georgia.In Ukraine, the land bank of the company is 12,000 hectares and is located in Vinnytsia, Zhytomyr, Khmelnytsky regions. In addition, Kusto Agro owns three elevators with a total capacity of 90,000 tonnes.

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UKRAINIAN EXPORT OF BERRIES COULD REACH 57,000 TONNES BY 2020 – FAO EXPERT

Total export of soft fruit with wild berries from Ukraine could reach 57,000 tonnes by 2020, Economist of the Investment Center of the Food and Agriculture Organization of the United Nations (FAO) Andriy Yarmak has said. According to his report at the Global Berry Congress held in Rotterdam posted on the Facebook page of the Ukrainian Horticultural Association (UHA), soft fruit export could reach 40,000 tonnes by 2020, and with wild – 57,000 tonnes.
“The share of fresh berries in export volumes of cultivated berries could reach 40-44% and in value could exceed 60%,” the expert said. Export of cultivated blueberries by the end of 2020 could reach 8,000 tonnes. Yarmak said that export of wild blueberries could decline to 15,000 tonnes.
According to the expert, the country saw a 19-fold rise in export of cultivated soft fruit in four years and a 17-fold rise in export of fresh soft fruit.
“First, the loss of the Russian market made farmers look for niches with more value. Secondly, the decline of incomes made people look for ways of making money and pay attention to soft fruit. Thirdly, Ukrainian fruit pickers worked in Poland received large experience and most of them started their own small business after returning to Ukraine,” Yarmak said, explaining the reasons of growth. According to the report, the share of raspberry grew from 7% in 2014 to 29% in 2017. The share of raspberry of total cultivated soft fruit reached almost 60% (without wild).

NORWAY’S SCATEC SOLAR PLANS TO BUILD 25 MW SOLAR POWER PLANT IN UKRAINE, CHERKASY REGION

Norway’s Scatec Solar seeks to build a solar power plant with the installed capacity of 25 MW in Kamianka (Cherkasy region), the press service of the Cherkasy Regional Administration has reported. Scatec Solar has built solar power plants with a total capacity of 322 MW in different countries. The company is in the process of building plants with the capacity of 434 MW. Scatec Solar operates in the Czech Republic, South Africa, Ruanda, Honduras and Jordan.

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