Andriy Ozeychuk, Director of the engineering and construction company Rauta, Chairman of the Board of Directors of the Ukrainian Steel Construction Center Association
What does Regulation 305 provide for?
On January 1, 2023, the Law “On placing construction products on the market” came into force in Ukraine, implementing the provisions of EU Regulation 305/2011 and significantly changing the requirements for the safety and quality of construction materials. By January 1, 2026, all Ukrainian producers must fully adapt to the requirements of the new law.
Cabinet of Ministers Resolution No. 426 extends the law to almost all construction products, from fasteners to chimneys.
New declaration system in Ukraine
The main difference between the new regulation and the previous one, which has been in effect since 2006, is the reference to European standards for the production of construction materials. From now on, Ukrainian producers must declare that their products comply with European standards and bear full responsibility for their quality.
Previously, the quality of products was confirmed by certificates in accordance with Ukrainian standards or technical specifications, which allowed for low-quality products. It was enough for manufacturers to register their own TUs or obtain a certificate from an accredited organization, relieving them of much of the responsibility for the characteristics of materials.
With the adoption of the new law, manufacturers are required to issue declarations of conformity based on the requirements of harmonized European standards. They must also ensure continuous quality control in production and take full responsibility for the declared characteristics.
Benefits of implementing Regulation 305
– Improved quality of building materials. New requirements oblige manufacturers to comply with European standards, which guarantees a higher level of product quality and safety.
– Protection of consumer rights. The introduction of a unified quality control system and liability mechanism will provide buyers with clear selection criteria and tools to influence unscrupulous producers.
– Access to the EU market. Thanks to a unified certification system, Ukrainian companies will be able to export their products to Europe without additional testing and conformity assessment procedures.
– Transparency of the construction materials market. Declarations of conformity will have to be registered in the Unified State Electronic System in the field of construction, which will promote openness and trust between producers, consumers and government agencies.
Risks of implementing Regulation 305
– Increased competition. European producers will be able to enter the Ukrainian market freely without additional certification, which may put pressure on national producers.
– Closure of some enterprises. Companies with outdated equipment may not be able to meet the new standards, forcing them to invest in modernization or cease operations. According to expert estimates, this risk will affect no more than 1% of Ukraine’s production capacity and will not have a significant impact on the industry.
Changes in European legislation
On November 27, 2024, the European Union adopted a new Regulation No. 2024/3110, which replaces the previous Regulation No. 305/2011. It entered into force on January 7, 2025, with a 1-year transitional period. It was Regulation 305/2011 that was the basis for the Ukrainian law “On placing construction products on the market”.
The main changes of the EU Regulation 2024:
– Increased environmental requirements. Manufacturers are obliged to assess the life cycle of building materials and their carbon footprint, which will promote the reuse and recycling of resources.
– Introduction of digital product passports. The Ukrainian law partially takes this provision into account, as it requires registration of declarations in the Unified State Electronic System in the field of construction.
– Simplification of requirements for small and medium-sized businesses to provide construction products on the market.
– Strengthening market surveillance. The regulatory authorities have been given more powers to check product quality and mechanisms to quickly withdraw non-compliant products from the market.
Conclusion.
The transition of Ukrainian producers to work in accordance with the requirements of the new law is an important step in the EU’s approximation. The new rules will encourage businesses to improve their production processes and invest in modernization, which will improve product quality and expand opportunities for domestic producers in the European market.
TK-Domashniy Textile (TK-DT), a member of the Textile-Contact Group (TC Group), has launched a new project, the cost of which is estimated at about $400 thousand, to produce various types of synthetic winterizer in Chernihiv, said Volodymyr Martsenyuk, managing partner of TK-DT.
“We have been thinking for many years about whether to launch another production facility. This decision was made at the end of 2023. We signed a contract with a Chinese company to supply equipment….. At the beginning of this year, we put the equipment into operation, worked on trial samples and have been fulfilling production tasks for a month now,” he said in an exclusive interview with Interfax-Ukraine.
According to him, the advantage of Chinese equipment is primarily in its price, which is three times lower than that of European manufacturers, although it has a shorter service life.
“In total, $350,000 has already been spent on the project, but I think that when we finish, it will cost $400,000, which is a lot of money for any medium-sized business,” Martsenyuk said, adding that partners had to be involved in the project.
According to him, the decision to start producing fillers was dictated, among other things, by the fact that fillers account for 20-25% of the cost of both outerwear and home textiles.
“Since we are one of the largest home textile producers in Ukraine, we used to spend a lot of money annually on the purchase of these fillers,” explains Martsenyuk.
In addition, the delivery of products from fillers’ manufacturers accounts for up to 10% of the cost price.
According to him, today only Ukrainian producers are present on the market of such fillers, and there are many of them.
The managing partner of TK-DT noted that the new production facility can produce fillers with a width of 2.6 m and a production capacity of 300 kg/hour.
“We can produce classic synthetic winterizer, siliconized (synthetic winterizer treated with silicone, which makes it soft, fluffy, and elastic), woolen winterizer, a mixture of natural wool and synthetic fibers that is often used as a filler for pillows, blankets, and jackets; and cotton winterizer,” he said.
Mr. Martsenyuk clarified that the market for nonwoven filler is currently very large.
“We can hardly estimate the share we plan to take. I think we may have one production out of 50 in Ukraine. I understand that there may be 10 or so equally serious large-scale production facilities, but there are also medium-sized and small-scale facilities, so there are enough of them,” he says.
Among the advantages of the company’s fillers, he mentioned the fact that the company buys only virgin fiber from China as raw material, while most companies process secondary fiber – recycled polyester made from PET bottles (so-called recycling).
Currently, the new production facility is planned to use 50% of its output for its own needs and sell 50% on the market.
“TK Home Textile is a leader in the production of fabrics, home textiles, and children’s products in Ukraine. Its portfolio of assets includes one of the few cotton fabric finishing plants in Ukraine, TK-DT Chernihiv, in Chernihiv. Its other assets include garment factories in Kyiv, Ternopil, Chernihiv and Odesa; a footwear factory in Chyhyryn; and a knitting production facility.
TK Group was founded in 1995. Today, it is a holding company that unites the entire range of textile industry services – from raw materials and yarns to ready-made solutions for B2B, B2G, and B2C customers.
Amid high corn prices, Ukrainian farmers have already exported about 1.8-1.9 million tons and are still maintaining good shipment rates, but the situation on the global market may soon change, according to the analytical cooperative Pusk, created within the framework of the All-Ukrainian Agrarian Council.
“Today, Ukrainian corn looks quite expensive on the global market. For example, we offer corn to the Spanish market at $257-260 per ton, while Argentine products are $10-15 cheaper at $245-248. As a result, the key consumers in the EU are not showing active demand. Moreover, in April, new batches of Argentine grain are expected to come in, which will put even more pressure on prices,” the analysts explained.
Experts pointed out that according to the satellite monitoring data, the soil moisture level in the so-called “small” states, which account for almost 45% of corn production, is decreasing in Brazil. If weather conditions continue to deteriorate, this could affect yields and trigger a new price increase.
“The climate in Brazil has a distinct seasonality: first, it rains heavily, then there is a long heat wave without precipitation. If the moisture reserves are not accumulated sufficiently, corn will not form the necessary vegetative mass. As of the end of March, there is a downward trend in soil moisture, and the risk zone is gradually expanding. If this continues, we may see a new round of price growth in May,” experts predict.
At the same time, they note that there is positive news coming from Turkey: the country has reduced the duty on corn imports and opened a quota. It is the demand from this direction that is currently supporting the prices of Ukrainian corn. However, according to experts, the quota may be enough for a week, provided active trade.
“The current price of corn on CPT-port basis is over $230 per ton, which is actually the price for Turkey. As soon as Turkey exhausts its quota, the market may drop to $215-220 in April, which is in line with seasonal patterns. Against this background, farmers should carefully weigh the decision to sell,” the analysts emphasized.
Thus, the situation on the corn market remains ambiguous: in the short term, prices may fall, but in the medium term, under the negative scenario in Brazil, growth in May-June is possible.
“Ukrainian producers should closely monitor the weather conditions in South America and be prepared for both scenarios,” Pusk called for.
Change in prices of food raw materials from Ukraine (forecast up to 2025), %
As of March 26, Ukraine exported 32.214 mln tonnes of grains and pulses since the beginning of 2024-2025 marketing year, including 3.032 mln tonnes shipped since the beginning of the current month, the press service of the Ministry of Agrarian Policy and Food reported, citing the data of the State Customs Service.
According to the report, as of March 27 last year, the total shipments amounted to 34.199 mln tons, including 4.529 mln tons in March.
At the same time, since the beginning of the current season, Ukraine has exported 12.912 mln tonnes of wheat (13.504 mln tonnes in 2023/24 MY), 2.196 mln tonnes of barley (1.957 mln tonnes), 10.8 thsd tonnes of rye (1 thsd tonnes), and 16.621 mln tonnes of corn (18.447 mln tonnes).
The total export of Ukrainian flour since the beginning of the season as of March 26 is estimated at 52.8 thsd tonnes (in 2023/24 MY – 78.1 thsd tonnes), including 48.9 thsd tonnes of wheat (74 thsd tonnes).
In February, global steel production decreased by 3.4% (to 144.7 million tons). The top ten largest producers saw a decline in volumes, except for India (+6.3%) and South Korea (+0.7%).
Top 10 steel producing countries in February 2025:
China – 78.92 million tons (-3.3%)
India – 12.66 million tons (+6.3%)
Japan – 6.4 million tons (-8.5%)
USA – 6.03 million tons (-7%)
Russia – 5.8 million tons (-3.4%)
South Korea – 5.15 million tons (+0.7%)
Turkey – 2.92 million tons (-5.6%)
Brazil – 2.72 million tons (-1.6%)
Germany – 2.7 million tons (-13.5%)
Italy – 1.81 million tons (-0.6%)
Overall, in January-February 2025, global steel production amounted to 301.96 million tons, down 2.2% compared to the same period in 2024.
The full dynamics of steel production by the top twenty countries of the world is available on the Experts Club YouTube channel – https://youtube.com/shorts/VgUU9MEMosE?si=BMOo_LS734dXysdj
