Nestlé in Ukraine intends to commission a new factory in Smolyhiv (Volyn region) in the fourth quarter of 2024, in the construction of which it has invested $45 million, according to a release from the company’s press office in Ukraine.
“The new factory will become part of a culinary production hub and will produce products, including those for export to the EU (…). The opening of the factory is scheduled for the fourth quarter of this year – on the 30th anniversary of Nestlé’s work in Ukraine,” the release said.
According to the report, in the first half of 2024, the company completed a number of construction works, installed some equipment, and continued to expand its green electricity generation capacity. In particular, a 500 kW solar power plant was installed, and another 700 kW is planned to be added in the near future, after which solar power plants will be able to provide 18% of the factory’s electricity needs.
In addition, the company is in the process of recruiting employees for the new factory: the company has already hired more than 100 people and opened the same number of vacancies. Prior to the opening of the factory, 300 jobs were created, and their number will continue to increase. The company continues to invest in its existing factories in Ukraine and provide Ukrainians with food. In the first half of 2024, the company maintained sales growth in Ukraine, focusing on adapting to the growing needs of consumers for basic food products. Nestlé in Ukraine has reformatted its product portfolio and adjusted production plans of its factories to meet demand.
At the same time, Nestlé Ukraine increased exports to European countries by 30% in 2023. With the opening of the new factory, it is planned to increase exports to the EU countries and thus support the process of European integration of the Ukrainian food industry.
The spokesperson reminded that Nestlé in Ukraine has invested more than $100 million in the Ukrainian economy over the past 10 years.
“The company will continue to invest in its production sites in Ukraine and support 5500 Ukrainian employees,” Nestlé Ukraine assured.
Nestlé started its operations in Ukraine in 1994 with the opening of a representative office, in 1998 it acquired a controlling stake in CJSC Lviv Confectionery Factory Svitoch, and since 2018 it has owned 100% of the company’s shares. In May 2003, Nestlé Ukraine LLC was founded in Kyiv, and at the end of that year, Nestlé became the owner of 100% of Volyn Holding.
Nestlé’s business in Ukraine is represented by the following areas: coffee and beverages, confectionery, cooking (cold sauces, condiments, soups, fast food), baby and specialty food, breakfast cereals, and pet food.
Zelenyi Park LLC (Iziaslav, Khmelnytskyi region), which produces corrugated paper (fluting) and containerboard, increased its production by 22.2% in January-July this year compared to the same period in 2023, to almost UAH 297 million.
According to UkrPapir Association’s statistics provided to Interfax-Ukraine, the company’s output increased by 10.5% in physical terms to 16.8 thousand tons. At the same time, in July, the company reduced production of fluting and testliner by 35% to 2.25 thousand tons by July 2023.
Zelenyi Park LLC was registered in 2011 and manufactures products from waste paper (the volume of acceptance of pressed sorted waste paper starts from 18 tons).
The factory is equipped with Finnish Valmet equipment, which allows it to produce fluting and testliner with a density of 70 to 200 g/sq. m and a roll width of up to 2.8 m.
According to the Clarity Project, 100% of the company is owned by Cyprus-registered Carton Mill Limited, and the ultimate beneficiaries are Kyiv resident Volodymyr Shandra and ATB co-owner Gennadiy Butkevych.
The company ended 2023 with a loss of UAH 78.2 million (56% more than a year earlier) on a 6.8% drop in revenue to UAH 498.6 million, and in the first half of this year increased revenue by 58.4% to UAH 258 million in January-June 2023, but suffered a loss of more than UAH 47 million.
Kyiv Metro has signed a contract to continue construction of the Syretsko-Pecherska subway line in the direction of the Vynohradar residential area, with Avtostrada Group LLC winning the tender.
According to the website of the Kyiv City State Administration, the construction period is set at 30 months and the cost of the works is UAH 13 billion 785 million. The procurement was conducted on the Prozorro public procurement platform.
“We are currently in the process of obtaining all the permits required by law and handing over the construction sites to the contractor. After that, construction work will begin,” the statement said.
The city administration emphasized that the construction of the subway will not only solve transportation problems, but will also provide residents of the Podil district with “round-the-clock reliable shelters.”
According to the Kyiv City State Administration, the right-hand tunnel has already been built, stretching almost 1,250 meters from Mostytska station to Syrets station. In addition, the construction of the main structures of the distillation ventilation unit has been completed. Also, the wall-in-soil method of enclosing structures and the metal structures for the pit have been partially installed. The main structures of the combined traction substation were constructed, and two-tier tunnels were partially constructed.
In December 2023, Kyiv Metro terminated the contract with Kyivmetrobud JSC in court due to the failure to meet the deadlines for construction work. The court is considering the recovery of a part of the prepayment, the use of which is not confirmed by the relevant acts of work performed, as well as penalties.
Trypillia Packaging Plant (TUP, Ukrainka, Kyiv region), a subsidiary of the shutdown Rubizhne Cardboard and Packaging Plant in Luhansk region, increased its corrugated packaging output by 21.9% in January-July compared to the same period in 2023, to 94.9 million square meters.
According to Ukrpapir Association statistics provided to Interfax-Ukraine, the plant is now the second largest producer of corrugated packaging after Kyiv Cardboard and Paper Mill (128.8 million square meters).
As reported, in the first half of the year, the plant increased its corrugated packaging production by 22.3% compared to the same period in 2023.
According to the association, in July, TUK increased its corrugated packaging production by 20% year-on-year and up to 14.9 million square meters by June this year.
In monetary terms, TUK’s production in January-July increased by 9.8% to UAH 1 billion 545 million.
The major companies in the industry that provided data to Ukrpapir increased production of cardboard boxes by 18.5% to almost 335 million square meters during this period.
As reported, before Russia’s full-scale invasion of Ukraine, Rubizhne Pulp and Paper Mill together with TUK were the leading corrugated box producers in Ukraine.
After the destruction, the plant in Rubizhne shut down, and the legal entity Rubizhne CTC JSC was re-registered in Kyiv.
TUC produces a wide range of corrugated cardboard products for food, industrial goods, and chemicals. Among its customers are Roshen, Coca-Cola, MHP agricultural holding, and Lactalis Group.
In 2023, the plant increased its commercial output by 13.7% compared to 2022, to UAH 2 billion 480 million, while corrugated packaging production increased by 18% to 145.8 million square meters.
Rail container transportation in Ukraine in the first seven months of 2024 amounted to 160,268 thousand twenty-foot equivalent units (TEUs), which is 58% more than in the same period last year, said Valery Tkachev, Deputy Director of the Department of Transportation Technology and Commercial Work of Ukrzaliznytsia (UZ).
“This means that we have a record volume of transportation in seven months. It even surpassed the pre-war figures,” he said at a meeting of the export office on Wednesday.
In addition, the Liski Transport Service Center is going to start signing long-term contracts with cargo owners for the use of fitting platforms for a specific period of time and at a fixed price, which will depend on the volume of transportation, Ukrzaliznytsia reported.
