Business news from Ukraine

KYIVSKY CARDBOARD MILL SEES 65% RISE IN PRODUCTION IN JAN- AUG

KYIV. Sept 15 (Interfax-Ukraine) – Kyivsky cardboard paper mill (Obukhiv, Kyiv region), a leader in Ukraine’s pulp and paper industry in terms of production and sales, produced goods worth UAH 2.404 billion in January- August 2015, 62.6% up on the figure for January- August 2014.

According to the UkrPapir association, in January- August 2015, the mill increased its production of corrugated cardboard packaging by 2.1%, to 127 million square meters. The mill increased its production of cardboard by 0.5%, to 135,640 tonnes, including a rise of 10.2% in production of commodity cardboard, to 82,700 tonnes and a decline of 11.7% in production of box cardboard, to 52,950 tonnes.

Production of base paper (for sanitary products) decreased by 13%, to 46,140 tonnes, while production of toilet paper fell by 15.5%, to 255.6 million rolls.

In January-August cardboard packaging production in Ukraine fell by 17.2%, to 479.64 million square meters, and cardboard and paper output dropped by almost 10%, to 528,980 tonnes.

Kyivsky cardboard paper mill is one of the largest cardboard and paper producers in Europe. It mainly produces goods from wastepaper. Its capacity for processing wastepaper exceeds 850 tonnes a day. The mill exports its products to CIS states and other countries.

 

UKRAINE TO REVOKE SPECIAL DUTIES ON CARS ON SEPT 30

KYIV. Sept 15 (Interfax-Ukraine) – Ukraine will revoke special duties on imports of passenger cars with petrol engines with a capacity of 1,000-2,200 cubic centimeters irrespective of their origin, imposed on April 28, 2013, for a period of three years starting on September 30.

The interagency commission for international trade said in the Uriadovy Kurier newspaper on Saturday that the decision was made on September 10, 2015 after consideration of the recommendations of the Economic Development and Trade Ministry to lift the restrictions.

MALYN PAPER FACTORY INCREASES PRODUCTION BY OVER 80% IN JAN- AUG

KYIV. Sept 15 (Interfax-Ukraine) – Weidmann Malyn paper factory (MPF, Zhytomyr region), the only producer of electrical insulating board for power engineering machines in Ukraine, increased production by 82.8% % in January- August 2015 year-over-year, to UAH 271.1 million.

According to statistics of the Ukrpapir association, cardboard output in natural terms rose by 43%, to 3,450 tonnes, while paper production fell by 30%, to 2,940 tonnes.

The mill produces electrical insulating board, filter paper, stained base paper and cardboard, as well as a wide range of packaging and special types of paper. Raw materials are supplied from Russia, Austria and Sweden.

In 2014, electrical insulating board exports accounted for almost 70% to Ukraine and 25% to the CIS countries.

Transformer boards produced by the plant are sold in Ukraine (20%), CIS states (30%) and non-CIS states (50%).

As reported, in 2014 Malyn paper factory increased production by 7.1% against 2013, to UAH 217.51 million, while paper production fell almost by 11%, to 6,040 tonnes, transformer board production dropped by 24.4%, to 3,140 tonnes.

Wicor Holding AG (Switzerland) owns a 94.6% stake in Malyn factory.

 

CHERKASY REGION CUTS TIME REQUIRED TO REGISTER BUSINESSES – GOVERNOR

KYIV. Sept 15 (Interfax-Ukraine) – The authorities of Cherkasy region have cut the amount of time required to register a business to 24 hours and also cut the tax rate for commercial property to 0.5% of the minimum wage per square meter, and in some districts of the region – to 0.2%, Head of Cherkasy Regional Administration Yuriy Tkachenko said at a press conference at Interfax-Ukraine on Monday.

“Tax on commercial property in Cherkasy is 0.5% per square meter. If we compare this with Odesa and Kharkiv regions, of course, they [the taxes] are four and even more times larger,” Tkachenko.

He said that the Cherkassy authorities liquidated the land commission in the regional administration which would discuss documents submitted by applicants over one month, and that now, the agro-industrial development department and the regional department of the state service for geodesy, mapmaking and cadastre considers applications within ten days. Tkachenko said that Cherkasy region has become the first region where extracts from the state service for geodesy, mapmaking and cadastre on land parcels can be received remotely.

Tkachenko said that on September 18, the Cherkasy Investment Forum will be held in Kyiv with the participation of leading companies, where the region will offer attractive land parcels and property to investors.

He said that the region is especially interested in foreign investors. Their share of total capital investment in the development of the region is small – only UAH 7.4 million out of over UAH 4 billion in 2015.

Tkachenko also spoke about the investment projects which are being introduced. Saturn household appliances producer plans to produce household appliances for vulnerable parts of the population.

Among the other projects which are being run with foreign investment is a project to produce brown coal being realized by Energy Investment Company LLC since 2014 and the signing of a memorandum with China’s Runh Power Corp. on the construction of a power plant.

He said that two investors from the United Arab Emirates invest fund are developing solar energy in the region, and a project on the construction of an elevator on the Dnipro River is being realized jointly with a French company.

The governor said that representatives of the region are working on attracting investors in the creation of imports-replacing production facilities and on defining production of dehydrated potato powder, household chemicals and personal-care products as top-priority directions.

Tkachenko said that over 10 companies from Donetsk and Luhansk regions have started producing goods in vacant facilities of Soviet enterprises in Cherkasy region (Orion, etc).

Board Chairman of APK Mais Serhiy Tereschuk said at the press conference that Cherkasy region has all the conditions to develop its agrarian industry: skilled staff, good soil, climate, waterways, and favorable geographical location and logistics advantages. He also said that a favorable investment environment is being created: authorities, business and community of the region have united as a part of decentralization.

Leader of the movement ‘For Prosperous Cherkasy Region’ Natalia Netovkina said that the nut, apple and honey production cluster is a top-priority for the region. It is planned to create cooperatives, including by Anti-Terrorist Operation solders, who receive 1.5-2 hectares from rural councils.

Tkachenko said that authorities and business are implementing a partner project on developing tourism in the region, in particular, in towns of Kaniv, Chyhyryn and Uman.

 

GERMAN-UKRAINIAN BUSINESS FORUM TO BE HELD IN BERLIN ON OCT 23 – ECONOMIC DEVELOPMENT MINISTER

KYIV. Sept 15 (Interfax-Ukraine) – The German-Ukrainian business forum with the expected participation of German Chancellor Angela Merkel and Ukrainian Prime Minister Arseniy Yatseniuk is to be held in Berlin on October 23, Economic Development and Trade Minister of Ukraine Aivaras Abromavicius said at a briefing in Kyiv on Monday.

“The main topics and tasks of the forum are to tell our German colleagues that the reforms are taking place, that they will only become faster, to show our investment potential, and attract attention to the possibility of privatization,” Abromavicius said.

He specified that the most important topics for Ukraine at the forum would be energy, agriculture, logistics, the eco industry, innovation, and information technologies.

According to him, 300-400 participants are expected to attend the forum.

As reported, the previous international investment conference with the participation of the Ukrainian government was held in Washington on July 13.

CONSTRUCTION MINISTRY STUDYING POSSIBILITY OF UKRAINIAN COMPANIES ENTERING EGYPTIAN CONSTRUCTION MARKET

KYIV. Sept 14 (Interfax-Ukraine) – The Regional Development, Construction, Housing and Utilities Economy Ministry of Ukraine is studying the possibility of Ukrainian construction companies entering the construction markets of Middle East countries, in particular, the Egyptian market.

First Deputy Head of the parliamentary committee for construction, town-planning and utilities Dmytro Andriyevsky announced the initiative on Thursday, referring to the results of a meeting with the top managers of the ministry.

“Firstly, the markets of the Middle East [are being studied]. There is serious progress for works in Egypt,” he said at a general meeting of members of the Constructors Confederation of Ukraine in Kyiv on Thursday.

He said that among the former Soviet republics, Azerbaijan, Kazakhstan and Turkmenistan are considered as top-priority and promising construction markets.

He called on companies that are members of the Confederation to more actively cooperate with the ministry regarding new markets.