Business news from Ukraine

KYIV. Feb 17 (Interfax-Ukraine) – The Federal Ministry for Economic Cooperation and Development of Germany has proposed that the economic forum is organized and held in Kyiv, where Kyiv will present projects in which German investment could be involved, Kyiv Mayor Vitali Klitschko said in Munich after a meeting with Federal Minister for Economic Cooperation and Development of Germany Gerd Muller.

“We’ve agreed to hold the economic forum in Kyiv with the involvement of German business to continue cooperation and attract investment and we will present projects for the implementation in Kyiv,” the press service of Kyiv City Administration reported on Saturday, citing Klitschko.

He said that Germany wants to directly work with Ukrainian cities for more efficiency, taking into account successful experience and the implementation of projects with Kyiv. Kyiv authorities realized a project of open budget with support of Germany. The project has made all spending of the budget funds transparent and this was another step in fighting corruption.

“I as the chair of the Association of Cities and Towns of Ukraine proposed to the minister that cooperation is expanded for other cities – for example, to realize the open budget project in other cities of Ukraine and consider the projects for investment,” Klitschko said.

ODESA. Feb 16 (Interfax-Ukraine) – Kolonist winemaking company (Odesa region) plans to boost wine production by 15-20% in 2016, Kolonist executive director Volodymyr Holodynets has told reporters.

He said that in 2015, the company processed 240 tonnes of grapes (around 140,000 bottles of wine), and this year the company plans to process 250 tonnes of grapes (160,000-170,000 bottles).

This year Kolonist plans to make a first pilot batch of sparkling wine under the Biser trademark. It will have 5,000 bottles.

The company also plans to use some wine materials to produce balsamic vinegar. Holodynets said that it is impossible to forecast its production volume, as it will be ready in five or six years, and this segment is unique for Ukraine now.

Kolonist produces wine under the Kolonist trademark in Bolhrad district of Odesa region. The owner and founder of the company is Ivan Plachkov.

KYIV. Feb 16 (Interfax-Ukraine) – Lutsk cardboard-paper mill, part of the United Cardboard Company belonging to businessman Mykola Lobov, produced goods worth UAH 22.3 million in January 2016, which is 37.7% up year-over-year, according to the Ukrpapir association.

The association said that during this period the mill made 3,000 tonnes of various types of cardboard – 3% down year-over-year, including a rise of 18% in packaging cardboard output, to 2,870 tonnes.

The mill did not produce box cardboard in January (400 tonnes in January 2015) as well as roofing cardboard, while cover board production plunged by 58.3%, to 120 tonnes. The mill also did not produce pulp (80 tonnes in January 2015).

One more company in the sector under control of the United Cardboard Company – Poninkivsky Cardboard and Paper Mill – boosted production by 64% in January 2016, to almost UAH 28 million.

The mill more than doubled production of box board, to 3,370 tonnes, and corrugated cardboard packaging output rose by 15%, to 4.07 million square meters.

Paper production rose by 23.2% in January 2016, to 210 tonnes.

Lutsk cardboard-paper mill LLC was founded on the basis of assets of Lutsk cardboard-ruberoid mill in summer 2012.

The mill produces raw materials for corrugated board production (fluting and test liner), roofing, box and cover cardboard.

In 2015, the mill produced goods worth UAH 404.55 million, which was 67.1% up year-over-year.

Poninkivsky Cardboard and Paper Mill was founded over 200 years ago. The mill produces cardboard and paper.

In 2015, the mill saw a rise of 97.3% in production, to UAH 329.22 million.

KYIV. Feb 16 (Interfax-Ukraine) – Biofarma pharmaceutical company (Kyiv region) as part of the implementation of the project on reconstruction of the Sumy blood donor center plans to restore the regular donor institution to receive high-quality blood for production of blood products.

“Today we’re forming the regular donor institution… Mainly we need to receive high-quality blood components for hospitals and plasma for the fractionator plant. It’s not a secret that there is a high level of virus diseases in Ukraine, as HIV, hepatitis, including hepatitis C, tuberculosis,” Board Chairman Kostiantyn Yefymenko said in an interview with Interfax-Ukraine.

He also said that Biofarma started construction of a blood plasma fractionator with a projected capacity of 400 tonnes in 2015. In April 2016, the company plans to sign contracts to supply equipment for the plant.

“We’ve invested in the Sumy regional blood center to supply enough high-quality blood to the fractionator plant. It is being reconstructed by Biofarma in partnership with Sumy region. We’ve fully modernized the regional blood center. We actually removed everything old one and build a new center which today collects 3 tonnes of plasma a month and it is able to boost it to 5 tonnes,” he said.

Yefymenko said that the company plans to resume donor culture which was lost at many blood centers.

“Our task is to attract as many as possible regular donors who we’re confident of,” he said.

Yefymenko said that the Sumy blood donor center is one of few examples of the successful public private partnership. The Biofarma’s investment in the project reached around $3 million.

Biofarma is among the ten largest Ukrainian drug manufactures. Biofarma produces more than 20 immunobiological preparations of blood, as well as drugs obtained by recombinant DNA technology and probiotics.

Niobera Investments Limited (Cyprus) holds 100% in Biofarma. According to the National Commission for Securities and the Stock Market of Ukraine, Biofarma Board Chairman Kostiantyn Yefymenko is the ultimate beneficiary of a large shareholder in Niobera Investments Limited. Shares do not belong to members of the executive body.

In 2014, Biofarma built a pharmaceutical plant in Bila Tserkva (Kyiv region). Investment totaled $42 million.

In 2014, Biofarma cut its net profit by 9.91% from a year ago, to UAH 25.801 million.

KYIV. Feb 16 (Interfax-Ukraine) – Biofarma pharmaceutical company (Kyiv region) plans to retain investment in its development in 2016 at the level of 2015 – $12 million.

“In general, in 2015 our investment reached $12 million. We plan not the smaller sum for 2016,” Board Chairman Kostiantyn Yefymenko told Interfax-Ukraine.

He said that last year Biofarma invested $5 million in construction of a probiotic workshop, $3 million in reconstruction of the Sumy blood donor center and $2 million was invested in designing of new medicines.

In addition, Yefymenko said that in 2015 Biofarma renewed the marketing and sales service.

“Now persons with experience of work in famous international corporations are among our top managers. Today this is important as in 2015 we introduced some new medicines to the market and we’re preparing new forms of our products, including nasal sprays, eye drops and suppositories. Probiotics have been launched to the active promotion,” he said.

Yefymenko said that blood preparations are a top-priority direction for the company. In money terms revenue from their sales is 40%.

Biofarma is among the ten largest Ukrainian drug manufactures. Biofarma produces more than 20 immunobiological preparations of blood, as well as drugs obtained by recombinant DNA technology and probiotics.

Niobera Investments Limited (Cyprus) holds 100% in Biofarma. According to the National Commission for Securities and the Stock Market of Ukraine, Biofarma Board Chairman Kostiantyn Yefymenko is the ultimate beneficiary of a large shareholder in Niobera Investments Limited. Shares do not belong to members of the executive body.

In 2014, Biofarma built a pharmaceutical plant in Bila Tserkva (Kyiv region). Investment totaled $42 million.

In 2014, Biofarma cut its net profit by 9.91% from a year ago, to UAH 25.801 million.