Business news from Ukraine

Business news from Ukraine

MAXIMUM RENTAL RATES IN KYIV EXCEEDS $95 PER SQUARE METER A MONTH

The maximum rental rates in shopping centers in Kyiv in the second quarter of 2018 grew by 12% and exceeded $95 per square meter a month, which is comparable to the rent rates in the pre-crisis period of 2010-2013, the press service of Jones Lang LaSalle consulting company (JLL) in Ukraine has said. “The maximum rental rates have almost reached the pre-crisis level of 2010-2013. The significant increase is due to a limited supply. New brands are trying to open their stores in the most successful facilities, however, it is not easy to find necessary space in such shopping centers,” JLL Retail Space Department Manager Yekateryna Vesna said.
According to JLL, four new international brands (Turkish Koton and DeFacto, Spanish Zara Home, Swedish Livly) entered the Kyiv market during this period, while a number of operators expanded their network (Under Armor, Lush, L’Occitane, Reserved). At the same time, with such an increase in demand, the new supply amounted to only 15,000 square meters (the Smart Plaza Polytech shopping center).
The share of vacant space in the second quarter decreased by 0.3 percentage points in comparison with the first quarter, to 4.2%. According to the forecast of JLL analysts, in the second half of the year the vacancy will continue to decrease and by the end of the year will reach 3.5%. Jones Lang LaSalle provides financial and comprehensive professional services in the field of real estate.

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UKRAINE TO KEEP STEEL PRODUCTION IN AUGUST AT 1.8 MLN TONNES LEVEL

Ukrainian metallurgical enterprises intend to keep steel smelting in August 2018 at the level of planned indicators of July, at 1.8 million tonnes. According to the Ukrmetalurgprom association, the plan for August also provides for the preservation of total rolled steel production at the level of 1.6 million tonnes and keeping pig iron smelting at the level of 1.8 million tonnes.
According to its data, in June cast iron production totaled 1.63 million tonnes (103% compared to May 2018), steel production was 1.71 million tonnes (101%), that of rolled products some 1.52 million tonnes (98%).
In January-June 2018 production of iron ore concentrate stood at 30.22 million tonnes (99.5% compared to the same period in 2017), agglomerate at 15.43 million tonnes (106%), pellets at 10.63 million tonnes (109%), coke at 5.37 million tonnes (106%), pig iron at 10.15 million tonnes (108% taking into account the work of enterprises in the temporarily uncontrolled area and 114% without taking them into account), steel at 10.39 million tonnes (101% and 106% respectively), rolled products at 9.25 million tonnes (105% and 110% respectively), and pipes at 544,000 tonnes (109%).
“Despite the loss of part of the capacity in the uncontrolled territory, an increase in production of main types of goods was observed in the six months of 2018 compared to the same period in 2017. This became possible due to stabilizing the supply of iron ore raw materials and coke to the enterprises, as well as commissioning blast furnace No. 3 at Zaporizhstal after reconstruction,” the report says.

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SUSHI BAR CHAIN PLANS TO LAUNCH NEW RESTAURANT BRANDS IN UKRAINE

Sushiya LLC, developing the eponymous sushi bar chain in Ukraine, together with other brands of USG Holding is developing pilot projects of new restaurants of Japanese and Pan-Asian cuisine in Ukraine. “We are trying to make several prototypes with our co-brands. They will be pilot projects, not Sushiya. We have ideas that we are striving to realize in Ukraine: it is another target audience, another product. We believe that the market is ready for it. It is very likely that this year these prototypes will be opened,” Anton Khodysko, the CEO of the Sushiya restaurant chain, told Interfax-Ukraine.
He did not specify the names of the pilot restaurants, but noted that “it will be Japanese and Pan-Asian cuisine in the form that is non-traditional for Sushiya.”
“At the early stage of investing, we will do everything ourselves, without involving partners. If the projects are successful, perhaps, we will offer some of them for franchise not only in Ukraine,” he noted.
According to him, in three years it is planned to reformat all restaurants of the Sushiya network. Having negative experience of opening restaurants on franchise, at present the company is not developing a franchise direction.
The Sushiya chain of restaurants of modern Japanese cuisine was founded in 2006 and has 38 restaurants in 13 cities of Ukraine: Kyiv, Boryspil, Vinnytsia, Dnipro, Zaporizhia, Lutsk, Lviv, Odesa, Poltava, Sumy, Kharkiv, Cherkasy, and Chernivtsi. In 2017 the network served more than 350,000 guests.

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KOKHAVYNSKA PAPER FACTORY RAISES PRODUCTION BY 34%

Kokhavynska paper factory (Lviv region), a tissue and toilet paper producer (the Kokhavynka trademark), in January-June 2018 increased production by 33.8% compared with the same period in 2017, to UAH 260 million. According to the Ukrpapir association, production of paper at the factory in natural terms increased by 16%, to 18,370 tonnes. At the same time, production of toilet paper rose by 1%, to 52.61 million rolls.
Kokhavynska paper factory has been operating since 1939. The factory producers base paper for hygienic goods, toilet paper and paper towels. The capacity of paper making machines is 19,000 tonnes per year, processing equipment 90 million rolls a year.
As reported, in 2017 the factory produced goods worth UAH 421.5 million, which is 23% more than a year earlier, paper production grew by 23.7%, to 33,350 tonnes.
In 2018 the factory planned to increase production to UAH 550 million.
The factory exports about 40% of the products. The main consumers abroad are the Czech Republic, Romania, as well as companies from Belarus, Moldova, Hungary, and the Netherlands.

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