Business news from Ukraine

Business news from Ukraine

Zaporizhstal cuts output of rolled products in 2020

In 2020, Zaporizhstal metallurgical plant reduced the output of rolled products by 4.3%, to 3.204 million tonnes compared to the previous year.

According to the company’s press release, steel production last year decreased by 5.5%, to 3.784 million tonnes, while pig iron production increased by 2.5% to 4.471 million tonnes.

In December, 397,500 tonnes of pig iron, 345,600 tonnes of steel, and 287,600 tonnes of rolled products were produced, in November 387,600 tonnes of pig iron, 329,200 tonnes of steel, and 275,100 tonnes of rolled products.

“Zaporizhstal has strengthened its position in the markets due to the transformation of work with consumers: high discipline of order fulfillment and customization are on the same level as the quality of supplied products. Therefore, we finished 2020 with decent results and plans for 2021,” Zaporizhstal Director General Oleksandr Myronenko said.

Zaporizhstal is one of the largest industrial enterprises in Ukraine, the products of which are in a great demand among consumers in the internal market and in many countries of the world. The plant specializes in high quality hot-rolled steel, hot-rolled sheet, cold-rolled sheet, cold-rolled coil of carbon and low-alloy steels, as well as steel tape, black sheet, and a bent profile.

The main consumers of the products are manufacturers of welded pipes, automobile, transport, agricultural engineering enterprises,and household appliances.

Zaporizhstal is in the process of integration into Metinvest Group, the main shareholders of which are PJSC System Capital Management (71.24%) and Smart-Holding group of companies (23.76%).

Metinvest Holding LLC is the managing company of Metinvest Group.

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Aviation Agency allows SkyUp to fly from Kyiv to London, Marseille

The commission of the State Aviation Administration of Ukraine has decided to recommend to the head of the service to grant SkyUp (Kyiv) the right to operate the Kyiv-London (the UK) air route for regular flights for an unlimited period from January 4, 2021.

According to the decision on the regulator’s website, the frequency of flights is three times a week.

In addition, SkyUp is allowed to fly:

– from Kyiv to Marseille (France) from April 6, 2021 for an unlimited period, twice a week;

– from Kyiv to Ostrava (the Czech Republic) from April 23, 2021 for an unlimited period three times a week;

– from Kyiv to Brno (the Czech Republic) from April 25, 2021 for an unlimited period, twice a week;

– from Kyiv to Podgorica (Montenegro) from March 28, 2021 for an unlimited period three times a week;

– from Kyiv to Hamburg (Germany) from March 28, 2021 for an unlimited period three times a week;

– from Kyiv to Nuremberg (Germany) from March 28, 2021 for an unlimited period, twice a week;

– from Kyiv to Hannover (Germany) from March 28, 2021 for an unlimited period three times a week;

– from Zaporizhia to Berlin (Germany) from March 28, 2021 for an unlimited period, twice a week;

– from Lviv to Munich (Germany) from March 28, 2021 for an unlimited period, twice a week;

– from Odesa to Munich (Germany) from March 28, 2021 for an unlimited period twice a week.

At the same time, the State Aviation Administration canceled the right of Bravo Airlines to operate the Kyiv-London-Kyiv air route (three times a week) and Kyiv-Nuremberg-Kyiv (five times a week), as well as Anda Air’s right to operate the Kyiv-Nuremberg route (twice a week).

Ukreximbank provides Antonov with UAH 3 bln for construction of three An-178 aircraft

The state-owned Ukreximbank (Kyiv) has provided the Antonov State Enterprise with almost UAH 3 billion of loan for the construction of three An-178 aircraft for the Ukrainian army, Chairman of the Management Board Yevhen Metzger said.

“The state-owned Ukreximbank signed a loan agreement with […] the Antonov State Enterprise for almost UAH 3 billion, which will go to the construction of three new An-178 aircraft for the Ukrainian army,” he wrote on Facebook.

It is indicated that a state contract for ordering aircraft was concluded with the Ministry of Defense of Ukraine for four years in the presence and with the assistance of President of Ukraine Volodymyr Zelensky.

As reported, in late December, the Ministry of Defense of Ukraine and the Antonov State Enterprise signed a memorandum of cooperation in the construction of aircraft for the needs of the Armed Forces of Ukraine.

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Norway’s Scatec starts commercial operation of third solar power plant in Ukraine

Norway’s Scatec and its partner FMO, the Dutch entrepreneurial development bank, have grid connected the 32 MW Kamianka project in Cherkasy region, the company said in a press release posted on GlobeNewswire.

According to the report, the plant will start commercial operations from January 1, 2021.

“We are pleased to complete our third project in Ukraine. The Kamianka solar power plant will lead to the abatement of more than 15,000 tonnes of CO² emissions, and will contribute to growing the share of renewable energy in the country,” CEO of Scatec Raymond Carlsen said.

The Kamianka solar plant is expected to deliver about 37 GWh per year and will be providing clean energy to more than 11,000 households.

Scatec now has almost 1.6 GW in operation globally. In addition, a portfolio of 320 MW is under construction, of which 203 MW in Ukraine.

Scatec is headquartered in Oslo and listed on the Oslo Stock Exchange (ticker SSO).

PrivatBank puts Pryozerny mall in Dnipro up for auction with price of UAH 518 mln

State-owned PrivatBank (Kyiv) has put the Pryozerny shopping center in Dnipro up for auction in the EP Liquid trading system, the mall has an area of 32,400 square meters and adjacent 12 land plots with a total area of 3,640 square meters, the press service of the bank said on Monday.

According to the report, it will be an English auction (the price should increase continuously) scheduled for January 15. The initial price of lot No. EPCU012021 is UAH 518 million. The money deposit is 5%.

EP Liquid is an electronic trading system (ETS) from a London-based firm of Exito Partners. In particular, the company specializes in advising financial institutions and corporates in disposal of non-core/distressed portfolios of loans & assets; large single name distressed loans & assets restructuring; equity & debt raising.

Through EP Liquid, investors can browse and bid on a variety of assets brought to market by Exito Partners.

On December 18, 2016, the government of Ukraine, referring to the proposal of the National Bank and former shareholders of PrivatBank, decided to nationalize this largest financial institution on the Ukrainian market and injected over UAH 155 billion into its capital.

According to the National Bank of Ukraine, PrivatBank as of October 1, 2020, ranked first in terms of total assets (UAH 600.15 billion) among 74 banks operating in the country.

TIS Group in 2020 increased cargo turnover

TIS Terminal Group in 2020 increased its cargo turnover by 10.34%, to 36.6 million tonnes (33.17 million tonnes in 2019).

“In 2020, the TIS group handled 36.6 million tonnes of cargo. We did not believe it, though … 36.6 is a beautiful figure, another TIS record, the largest cargo turnover among all Ukrainian operators, a 10% increase compared with last year. TIS year after year shows double-digit growth,” Andriy Stavnitser, co-owner of the TIS terminal group and the P&O Maritime Ukraine towing company, wrote on his Facebook page on January 1.

He also said that by the end of the year, the company employs more than 5,000 people.

“I think this is a completely official reason to expect only good things from 2021,” Stavnitser said.

As reported, TIS handled 33.17 million tonnes of cargo in 2019, which is 28.4% more than in 2018.

TIS Terminal Group is the largest stevedoring operator in Ukraine established 25 years ago.