Business news from Ukraine

Business news from Ukraine

Slavyanske Wallpapers – KFTB increased wallpaper output by 26.5%

JSC “Slavyanske Wallpapers – KFTB” (formerly – Koryukivska Factory of Technical Papers, Chernihiv region), a leading Ukrainian wallpaper manufacturer, in January-July this year produced 9.27 million conditional pieces of wallpaper – 26.5% more than in the same period of 2022.

According to statistical data from the UkrPapyr association provided to Interfax-Ukraine, in July, in particular, it produced 1.62 million conditioned pieces – 4.2% less than in July-2022, but 3.6% more than in June this year.

At the same time, in monetary terms, the factory’s output in January-July increased by 56.3% to UAH 719.3 mln.

As reported, in January-February this year, the factory showed a 10.7% drop in production volume to the same pre-war period of 2022 – to UAH 189.51 million, with wallpaper production falling by 40.5% to 2.18 million pieces.

According to the association “UkrPapir”, in 2022, the factory reduced the output of wallpaper 2.4 times to 2021 to 13.59 million усл. pieces, the production volume decreased by 45% to 903.55 million UAH.

Earlier, the company noted that due to Russian aggression last year significantly reduced sales volumes, especially through retail channels.

JSC “Slavic Wallpaper-KFTB” – one of the largest European wallpaper factories, produces more than 10 types of wallpaper from economy segment (paper, duplex, vakryl) to premium-class wallpaper (vinyl, fleece, hot stamping wallpaper). In addition, the factory has mastered the production of its own latex, water-dispersion paint (TM Latex).

In 2021, the share of exports in the total sales of the company amounted to 65% (or UAH 1.1 billion), and the largest importers were Latvia, Kazakhstan and Azerbaijan.

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Ukraine’s tourism industry has replenished State Budget by 898 mln UAH

Representatives of Ukraine’s tourism industry in January-June 2023 paid 897.848 million UAH to the budget, the press service of the State Agency for Tourism Development (SART) told Interfax-Ukraine on Thursday.

It is specified that this is 11% more than for the first half of 2022 (809.435 million UAH), and 17.5% less than for the first half of 2021, when 1 billion 88.945 million UAH was transferred to the state budget from the tourism industry.

The press release informs that in this reporting period, the total number of taxpayers engaged in tourism activities decreased by 23% compared to January-June last year. At the same time, the number of legal entities decreased by 28%, while the number of individuals – by 21%. If we compare this indicator with the same period of 2021, the total reduction in the number of taxpayers amounted to 36% (-45% for legal entities and -32% for individuals).

The largest share of revenues to the state budget was provided by hotels – 63%, or 569.828 million UAH, while in January-June last year they paid 460.498 million UAH, and for the same period in 2021 – 665.420 million UAH.

At the same time, in January-June this year decreased the amount of tax paid from the activities of tourist bases and children’s recreation camps, which provided 60.428 million UAH of deductions against 73.012 million UAH for the same period last year and 178.921 million UAH for the first two quarters of 2021.

The amount of taxes paid from the activities of campgrounds and parking lots for RVs for two quarters of this year almost doubled to UAH 1.492 million against UAH 731 thousand in January-June 2022, but decreased by 26% compared to the first half of 2021.

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Khreshchatyk Street will be blocked from August 20 to August 28

Kyiv will block traffic on Khreshchatyk Street from Independence Square to Bohdan Khmelnytsky Street from 23:00 on August 20 to 23:30 on August 28, the head of the Kyiv City Military Administration, Serhiy Popko, said in a telegram.
“Attention drivers. In connection with the preparation and holding of festive events in the center of Kyiv, traffic on Khreshchatyk Street will be blocked from Independence Square to Bohdan Khmelnytsky Street,” the message reads.
“The restriction will be in effect from 23:00. August 20 until 23:30. August 28. Please take this information into account when moving around the center of the capital,” informed the head of KCIA.

President of Ukraine and his wife went on working visit to Sweden

The President of Ukraine Volodymyr Zelensky together with his wife Olena Zelensky went on a working visit to Sweden.
“Working visit together with the first lady to Sweden. Meetings with Prime Minister Ulf Kristersson, King Carl XVI, Queen Silvia, Speaker Andreas Norlen and heads of parliamentary parties. Extensive Ukrainian-Swedish talks. I will personally thank Sweden for the support of our struggle for freedom and independence,” – said the head of state in his Telegram.
As the President noted, the primary task of the visit is to strengthen Ukrainian soldiers on the ground and in the sky, the development of bilateral cooperation, in particular in the defense industry, European integration of Ukraine and common security in the Euro-Atlantic space, as well as Sweden’s full support for Ukraine on its way to NATO.
“We are confident that together we will guarantee reliable peace in the entire Baltic-Black Sea-Azov region,” Zelensky wrote.

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Sukha Balka mine increased crude iron ore production by 32%

Sukhaya Balka mine (Kryvyi Rih, Dnipro region), part of Aleksandr Yaroslavsky’s DCH Group, increased crude iron ore production by 32%, or about 300 thousand tons, in the second quarter of this year.

The mine’s chief engineer, Igor Piltek, told DCH Steel’s corporate newspaper on Thursday that the production is short of workers in key job specialties. Therefore, the mine was forced to stop the technological process at the Frunze mine. The lack of a market for products also had a negative impact.

In addition, Yubileynaya mine is not yet being used to its full capacity, and the workforce is working depending on the situation with product shipments and the availability of qualified personnel.

“However, if we compare the performance of the first and second quarters of this year, we see an increase in production in the second quarter. Crude ore production increased by 32% to about 300 thousand tons, and commercial ore production by 42% (260 thousand tons) (…) This growth is primarily due to an increase in working hours. While at the beginning of the year the company’s team worked a reduced working week, in the second quarter, employees of the leading mining professions (sinking, mining, mine construction) returned to a full working week,” explained the chief engineer.

He also said that after the occupation of Mariupol and the destruction of Sukhoi Balka’s main consumer of ore, the company reoriented to another market: ore is being sold to Western partners, metal producers. The mine’s ore is consumed by steel mills in Slovakia, the Czech Republic, Hungary and Serbia.

“This spring, sales volumes increased, but in the summer, due to the crisis in the steel industry, we are seeing a decline. The shutdown of four blast furnaces at European steel mills reduced the need for raw materials. Sales volumes of the mine’s products decreased. We hope that the situation will improve in September,” said Piltek.

Commenting on the water situation, the chief engineer pointed to the shortage of water after the destruction of the Kakhovka hydroelectric power station. In particular, the lack of water affects the operation of the Central Compressor Station: the unit usually uses about 300 cubic meters of water, but in the current conditions, given the lack of resources, the company has developed a number of measures to reduce consumption. Significant savings have been made at Frunze mine, the industrial site of Yubileynaya mine, and auxiliary units. Water consumption was reduced by 30%.

It is also noted that difficulties with the company’s energy supply are expected in winter, so this year a new powerful generator was installed at Tsentralnaya mine to ensure the withdrawal of miners from the mine in case of a power outage.

“In the near future, we expect to receive five 20 kW generators to create a reserve and meet the needs of surface facilities,” added Piltek.

Sukha Balka mine is one of the leading mining companies in Ukraine. It produces iron ore by underground mining. The mine includes Yubileynaya and Frunze mines. DCH Group acquired the mine from Evraz Group in May 2017.

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Tripillya Packaging Plant has increased production by 29%

Tripillya Packaging Combine (TPC, Ukrainka, Kyiv region), a subsidiary of Rubizhansky Cardboard and Packaging Plant, which stopped its work in Lugansk region, in January-July this year produced UAH 1 billion 406.7 million, which is 28.7% more than in the same period of 2022.

According to statistical data provided to Interfax-Ukraine by the UkrPapir association, the mill produced 77.86 million square meters of corrugated packaging during this period – 16.6% more, which consistently remains the second result in terms of output after Kiev Cardboard and Paper Mill (128.2 million square meters).

Including in July, the mill increased the output of these products by 2% against July-2022 and by 12% against June this year – up to 12.45 million square meters.

In total, the main enterprises of the industry, providing data from the association “UkrPapir”, in January-July produced 283.45 million square meters of cardboard packaging – 16.3% more than in the same period of 2022, including in July – 44.14 million square meters (6.6% more).

As reported, before the full-scale invasion of Ukraine by the Russian Federation, Rubizhansky KTK together with TUK predominantly led the market of corrugated packaging producers in Ukraine.

After the destruction, the plant in Rubizhne was shut down and the legal entity “Rubizhansky KTK” was re-registered in Kyiv.

TUK produces a wide range of corrugated cardboard products for foodstuffs, industrial goods, and goods of chemical industry.

Among its clients are Roshen, Coca-Cola, agricultural holding MHP, and Lactalis Group.

According to Opendatabot, RKTK JSC owns 99.96% in TUK LLC, and the ultimate beneficiary is the general director (and beneficiary) of Rubizhansky KTK JSC, Gennady Minin, who since September 2022 also manages the Tripillya Packing Plant.

TUK in 2022 received almost UAH 232 mln of net profit and UAH 2.38 bln of revenue.

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