Business news from Ukraine

MHP INVESTS $300 MLN IN POULTRY FARM

Myronivsky Hliboproduct (MHP) early July launched the second line at Vinnytsia poultry farm, the company’s press service has reported.
According to the report, total investment in the second line was $300 million.
The company said that at present, production at the farm is around 280,000 tonnes of poultry a year. By 2020 it is planned to boost it to 560,000 tonnes.
Myronivsky Hliboproduct is the largest poultry producer in Ukraine. It is also engaged in production of grains, sunflower oil, and meat.
MHP supplies cooled semi-carcasses, which are processed, including at its enterprises in the Netherlands and Slovakia.
The company’s land bank as of late 2017 was around 370,000 ha.
The founder and majority shareholder in MHP is Ukrainian businessman Yuriy Kosiuk.

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MONTHLY PASSENGER FLOW AT KHARKIV INTERNATIONAL AIRPORT EXCEEDS 100,000 PEOPLE

In June 2018, passenger flow of the Kharkiv international airport totaled 114,600 people, which is 38% up year-over-year.
The press service of the airport reported that this is a record breaking figure for the airport – first its monthly passenger flow exceeded 100,000 people.
The most popular destinations in June were Istanbul (Pegasus, Turkish Airlines), Kyiv (UIA), Warsaw (LOT), Tel Aviv (UIA), Dortmund (WizzAir), Minsk (Belavia), Milan (UIA), Batumi (Myway Airlines, Yanair), Katowice (WizzAir), Tbilisi (Myway Airlines) and Lublin (Bravo Airways).
In May 2018, passenger flow of the airport was 88,900, which is 5% more than a year ago (84,400). The share of passengers on international flights was 80%.
Total passenger flow of the airport in January-June 2018 totaled 440,200 people, which is 21% more than a year ago (364,100 people).
Kharkiv airport has a runway 2,500 meters long and 50 meters wide. There are two passenger terminals with the capacity of 100 and 650 people on its territory.
DCH manages the airport through New Systems AM.

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UKRAINIAN COMMERCIAL VEHICLE MARKET GROWS CONSIDERABLY IN JAN-JUNE

The new commercial vehicle market in Ukraine (including trucks) grew by 24% in January-June 2018 year-over-year, to 6,400, the Ukrautoprom association has reported.
In June, the market grew by 38% year-over-year, to 1,241 vehicles.
Renault vehicles sales grew by 19%, to 1,174, being first in the number of vehicles sold. Citroen is second with 588 vehicles sold (a 3.5-fold rise). Fiat is third with 3% growth, to 573 vehicles.
Ford is fourth with 555 new commercial vehicles sold (28% more), and Belarusian MAZ is fifth with 503 vehicles sold (64% up).
In June alone, Renault vehicles were also most popular with 244 registered vehicles (almost 30% more than in June 2017). Mercedes-Benz is second with a 53% rise on June 2017 and a 2.2-fold rise on May 2018.
Fiat is third with 111 vehicles sold (30.6% up on June 2017), Ford is fourth with 88 vehicles sold (1% up) and MAN was fifth with 79 vehicles registered (18% up).
Ukrainian commercial vehicles are seen in the top twenty most popular vehicles only with ZAZ brand (13 vehicles sold compared with 21 in June 2017 and seven in May 2018).

GOVERNMENT PLANS TO BUILD KYIV-BORYSPIL AIRPORT RAILWAY

The Cabinet of Ministers of Ukraine has approved a project on organization of passenger traffic between Kyiv city and the Boryspil international airport. It will take 13 months and a half to implement the project, which cost is UAH 583.238 million (in the prices as of May 2, 2018). According to the document, which has been sent to Interfax-Ukraine, construction works would cost UAH 428.478 million, equipment and furniture – UAH 37.755 million and other expenses – UAH 117 million.
The total exploitation length of the section between Kyiv Pasazhysky station and Boryspil airport is 37.4 km. The project is divided into two stages. The cost of the first stage is UAH 502.947 million. It is planned to build 3.7 km of railway track, one new stop and a flyover railway line of 272 meters long in six months.
In addition, two passenger platforms with open-door passenger shelters near Terminal D of the airport and an open-door gallery between the passenger shelter and Terminal D of 150 meters long.
The cost of the second stage is UAH 80.291 million. A new stop, a high passenger platform near the flyover railway line of 160 meters longs will be built in seven months and a half.

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FRANCE’S AUCHAN TO OPEN NEW FORMAT STORES IN UKRAINE IN JULY

Auchan Retail Ukraine, part of France’s Auchan Holding, in July 2018 would open first proximity stores under the My Auchan brand in Ukraine, where Click and Collect points would be installed.
“Creating a multi-format, responsible and innovative enterprise, Auchan continues its expansion into Ukraine. Now the company has 22 hypermarket and superstore formats and will soon open the first proximity stores under the My Auchan brand to become even closer to customers and accompany them every day,” the company said in a statement.
According to it, the stores, which now operate under the sign of Topmart, require a temporary cessation of activity with the aim of restyling and updating them. So, the Topmart shop at 6A, Williams Street, is closed for restyling on 21 June, the second one will be closed on July 5.
The press service said that stores My Auchan will include their own cooked products, baked products and a cafe.
“In addition to a broader and more diverse range of products, there will also be free Wi-Fi and mobile charging points in the shops. Another feature of My Auchan stores will be the Click and Collect goods outlet, which will allow customers to order online the entire nonfood range of goods represented in the Auchan hypermarkets and get them in their proximity shop,” the company said.

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AMERICAN AGCO WANTS TO BOOST UKRAINIAN AGRI MACHINERY MARKET SHARE TO 20% – VICE PRESIDENT IN EUROPE ROB SMITH

AGCO, a global leader in production and delivery of agricultural machinery and equipment, seeks to occupy 20% of the Ukrainian imported agricultural machinery market in three years. “Last year we finished with the 9% share of the Ukrainian market of foreign agricultural machinery, and by 2018 we are planning to reach the market share that will have a two-digit number, and with favorable business conditions we plan to reach around 15% of the market by the end of this year. And in three years they are going to have 20% and this will be an excellent result,” Senior Vice President and General Manager of AGCO in Europe and the Middle East Rob Smith said in an exclusive interview with Interfax-Ukraine.
According to him, in 2016-2017, the market of agricultural machinery in Ukraine tripled, and last year hit a record for the supply of imported equipment during the country’s independence.
“Over 3,500 tractors were brought in. According to our forecasts and expectations, in the coming years the market for foreign brand tractors in Ukraine will increase to 4,000 units. 2018 still has slower sales and demonstrates market stabilization after the peak in 2017, but there are all chances to become the second best year in the history of modern Ukraine,” Smith said.
The vice president of the company said that currently AGCO in Ukraine is represented by its main brands Fendt, GSI, Massey Ferguson and Valtra.
In addition, by the end of 2018, the tracked tractor Fendt 1100 MT will be introduced, and in 2019 the company plans to introduce the Ideal combine harvester on the Ukrainian market.

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