Business news from Ukraine

Business news from Ukraine

ETALON CORPORATION EXPECTS RISE OF BUS PRICES

24 December , 2021  

Etalon Corporation in 2022 expects prices for manufactured buses to rise by at least 20%, primarily due to a sharp rise in prices for energy and materials, president of the corporation Volodymyr Butko said.
“Metal prices have almost doubled, but I’m not talking about gas and electricity at all. Therefore, today it is clear that the prices at which we sold school buses will not work out, stocks are running out, and we say that prices will rise, at a minimum, by 20%. Plus wages, which we must increase – this is also in the price of products. Therefore, 20% is still the growth to which we are accustomed, but we think with horror that if the price of energy resources goes up two or three times, it will be possible to forget about production and sales,” Butko said at a final press conference in Kyiv.
He noted that the most energy-intensive production within the corporation is the forge plant.
According to Vitaliy Tretiak, the director of Chernihiv Forging Plant, this year the plant has increased the load of equipment by 25% due to the development of 20 units of new products.
“We have achieved in the cost price per 1 kg of products a decrease in the use of electricity in kilowatts by 5%, gas – by 3%, but these works were brought to zero by a sharp rise in prices – for electricity for the year by 90%, gas – by 272%, plus problems due to the pandemic – and this year we have somewhat lost the export component – traditional export to Poland, Germany. And now we are negotiating with companies from the countries of the former Yugoslavia, the Scandinavian countries, the United States,” Tretiak said.
He noted that the share of energy resources in the prime cost this year was 25% – 25.5% in kilowatts (three years ago – 30%), and taking into account the price it is already up to 50%, which is “very difficult” for the enterprise.
Etalon Corporation unites 21 enterprises. The main areas of activity are the production of vehicles (buses of various classes, trolleybuses, trams), mechanical engineering, warehouse logistics, water purification and saturation equipment.
As reported, about 255 buses (including 200 school buses) and four trolleybuses were sold in 2021.

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