Commodity output of Kyiv Cardboard and Paper Mill (Kyiv CPM, Obukhiv, Kyiv region), the leader of Ukrainian industry according to this indicator in January-April 2023 amounted to 2 billion 457.5 million UAH, which is 21.7% more than the same indicator of the first quarter of 2022.
According to statistics from UkrPapir association, provided to Interfax-Ukraine news agency, the plant has slowed down a little bit the growth rate of this index compared to the same period last year (in January-March the increase exceeded 27%).
In terms of volume production of corrugated boxes at the plant increased by 47.8% – to 70.06 million square meters. Production of cardboard increased by 26.3% to 55.37 thousand tons, due to the growth of containerboard output by 55.2% to 36.38 thousand tons, while the production of cardboard boxes decreased by 34% to 7.54 thousand tons.
At the same time, the output of backing paper for the manufacture of sanitary and hygiene products retains the negative trend, although slowed down – in January-April it fell by 27% to 14.29 thousand tons, while the production of toilet paper rolls fell by 29.6% to 78 million pieces.
Combine, despite the reduction in production of toilet paper, retains leadership in the production of toilet paper in Ukraine: a total of 180.9 million rolls (9% less) were produced by the main companies in the industry over four months.
According to the profile association, received from the major enterprises of the industry, a total of 172.76 tons of paper and cardboard (almost 14% more), and 155.30 million square meters of cardboard boxes (+26.3%) were produced in Ukraine in January-April 2023.
At the same time, the increase in these figures compared with the same period last year is largely due to the low comparative base of March 2022 – the first full month of full-scale invasion by Russia, when many companies have suspended their work.
Interfax-Ukraine Agency in the press-service of the plant, describing the current situation in the markets of branch products, explained that the market of corrugated products has decreased by 35-40%, taking into account the fall in demand for it in conditions of war.
“The situation with sanitary products is similar. In addition, in addition to the overall level of the economy, its demand is influenced by the number of people – the main consumer. Today, a large number of people have left Ukraine, many remain in the occupied territories, therefore, accordingly, the market has also decreased. The reduction in market volume is, depending on the segment from 18 to 35%,” – the company said.
In addition, there is a redistribution of demand in the segments of these products – the consumer saves money, so it reduces costs in the non-basic categories (napkins, towels) and focuses on the main – toilet paper.
“It has become much more difficult to export products: high logistics costs virtually eliminate the possibility of selling to the Middle East and North Africa. It is difficult to compete in Europe, because the cost of logistics “eats up” the possible earnings. In addition, because of the war, few companies are ready to sign long-term contracts, because because of all the possible risks it is difficult to guarantee a regular supply from Ukraine,” says the company.
At the same time, the plant is active in humanitarian work, including the allocation of more than UAH 0.5 million monthly in support of medical and educational institutions, public and volunteer organizations. Earlier it provided thousands of mobile corrugated beds and corrugated stools for the displaced people in Cherkasy, Znamenka, equipped hospital shelters and, in particular, the Kharkiv metro.
Among recent initiatives is the purchase of warm kits for children in the territories of active fighting and a humanitarian mission to deliver food kits to the liberated Izyum.
Besides, according to the press service, despite the cancellation of the employer’s guarantee for the average wage in July last year, the plant continued paying the mobilized employees, which is the 10th part of the whole workforce.
Kiev KBC is one of Europe’s largest cardboard and paper companies, employing over 2.5 thousand people.
As it was reported, in 2022 the mill produced 7 billion 432 million UAH, which is 3.5% less than in 2021.
Pulp Mill Holding (Austria) owns 100% of shares of KKBK PJSC.
