Business news from Ukraine

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.