Business news from Ukraine

ONE OF THE WORLD’S LEADING SPORTS EQUIPMENT/CLOTHING MANUFACTURERS HEAD INTERNATIONAL PLANS TO PRODUCE EQUIPMENT IN UKRAINE

The city authorities of Vinnytsia and Vinnytsia Regional State Administration have signed a memorandum of understanding with Head International GmbH, the world’s manufacturer of sports equipment, the UkraineInvest office said on Facebook. “Today one of the world’s leading sports equipment manufacturers, Head International GmbH, has signed a memorandum of understanding with the city of Vinnytsia and Vinnytsia Regional State Administration, according to which the company plans to expand its activities in Ukraine to produce winter sports equipment,” the report said. It is expected that the multimillion-dollar investment project will create a significant number of jobs within five years, make Vinnytsia known for the fans of skiing thanks to the worldwide recognized global brand Head, UkraineInvest said.
Head UK Ltd. is one of the world’s leading manufacturers and sellers of sports equipment and clothing. The company’s business includes five divisions: winter sports, racket games, diving, sportswear and licensing. The trademarks of the company are HEAD, Penn, Tyrolia, Mares, SSI, and rEvo. The main markets are Europe (mainly Austria, Italy, Germany, France, Switzerland, the Benelux countries, Spain, Great Britain, the Czech Republic, and Poland), North America, and Asia.

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UKRAINE SEES EXPORTS OF OILSEEDS RISE BY 24% SINCE 2017/2018 MARKETING YEAR START

Ukraine since the beginning of the 2017/2018 marketing year (MY, July-June) has exported nearly 35 million tonnes of grains, which is 7.9% lower than in the same period of the 2016/2017 MY (38 million tonnes).
According to the department of biosecurity safety and seed raising control of the State Service of Ukraine for Food Safety and Consumers’ Rights Protection, the country exported, in particular, 15.4 million tonnes of wheat, almost 4 million tonnes of barley, and 15 million tonnes of corn.
The agency noted that the country in the same period of the previous MY exported 16 million tonnes of wheat, 5.1 million tonnes of barley, and 17 million tonnes of corn.
The service said that since the start of the 2017/2018 MY (September-August) the country has exported more than 4.6 million tonnes of oilseeds, in particular more than 2.1 million tonnes of rapeseeds, 2.5 million tones of soybeans. On the same date of the past MY, oilseeds exports amounted to almost 3.7 million tonnes, in particular rapeseeds exports exceeded one million tonnes, soybeans stood at 2.7 million tonnes.

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UKRAINE INTERNATIONAL AIRLINES RECEIVES SECOND OF FOUR PLANNED LONG-HAUL BOEING-777

Ukraine International Airlines (UIA) on May 4 expanded its fleet with second long haul widebody Boeing 777-200ER plane. The press service of the airline reported that it was officially registered in Ukraine under the UR-GOB registration number.
Boeing 777-200ER aircraft accommodates 361 passengers in three-class seating configuration, i.e. Business Class, Premium Economy Class, and Economy Class. UIA expects to operate the UR-GOB aircraft under a contract with AerCap which envisages the delivery of two more Boeing 777-200ER in 2018.
“The aircraft is equipped with Panasonic Corporation individual IFE system. Every seat is equipped with personal screen with a vast content menu, including feature movies, TV shows, a variety of Ukrainian movies, movies for children and cartoons. The content is available in several languages, Ukrainian, English, Chinese, Russian, French, Hindi and other languages,” the UIA said.
Moreover, passengers will be able to track the aircraft in real-time mode by using the interactive touch-sensitive 3D-map with 3D globe image, 100 city guides, including 20 cities of Ukraine, Kids map – Animals App, and other information.
USB-units and electrical power sockets are installed in all cabins with Wi-Fi connectivity available during the flight.
The aircraft is equipped with Bruce Aerospace Sky Interior modern lighting system which is customized so that the lighting regime changes according to natural environment.
Two more Boeing 777 aircraft are scheduled to arrive in Q2 – Q3 2018.

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UKRENERGO INCREASES ELECTRICITY TRANSMISSION IN Q1

National energy company Ukrenergo in January-March 2018 increased transmission of electricity through trunk power grids by 0.5% (by 145.197 million kWh) compared to the same months in 2017, to 30.224 billion kWh. According to a report on the company’s website, the cost of electricity transmission services for January-March fell by 28.8% (UAH 251.344 million), to UAH 1.087 billion.
Ukrenergo in January-March 2018 increased capital investments by 61% (by UAH 403.32 million), to UAH 1.065 billion.
Total expenses increased by 9.2% (by UAH 61.452 million), to UAH 728.505 million, in particular repair costs increased by 1.8% (by UAH 509,000), to UAH 28.045 million.
Ukrenergo operates trunk and interstate power grids, as well as centralized dispatching of the unified energy system of the country. The company is a state enterprise subordinated to the Ministry of Energy and Coal Industry, but will soon be transformed into a private joint-stock company

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KYIV INTERNATIONAL AIRPORT WANTS TO OVERHAUL RUNWAY IN COMING YEARS – BOARD CHAIRMAN

The Sikorsky Kyiv international airport plans to overhaul a runway in coming two or three years, Board Chairman Denys Kostrzhevsky has said. “The next stage to increase the passenger flow and increase profits and payments to the budget will be the reconstruction of the runway and the airfield. The runway has been operated for about 10 years and gradually deteriorates. To ensure flight safety, it is necessary to overhaul runway in the coming two or three years, with the closure of the airport for a year,” he said in an interview with Interfax-Ukraine.
According to the top manager, the problem is that the runway currently belongs to the municipal enterprise, that is, to the city’s community, and only this enterprise can carry out its reconstruction.
“In order to attract private funding for the reconstruction of the runway, and this is logical, it is necessary to resolve the issue of transferring the runway to either concession or lease on the terms of reconstruction to a private investor. We face this task for the next two or three years: either at the expense of the municipal budget, or with the involvement of a private investor,” Kostrzhevsky said.
Kyiv International Airport (Zhuliany) is located in the business center of the capital, seven km from the city center. It is the second largest airport in Ukraine in terms of the number of flights and passenger traffic. The airport has three terminals with a total area is 21,000 square meters. Terminal B is separate facility for business-class service, it is part of the Fixed Base Operator (FBO) system. The airport’s runway is able to handle B-737 and A-320 aircraft.

SOLD INDUSTRIAL PRODUCTS (GOODS, SERVICES) IN UKRAINE 16.7% UP IN Q1

The volume of sold industrial products (goods, services) in January-March 2018 stood at UAH 621.436 billion, which is 16.7% more than in January-March 2017, in particular the volume sold abroad was worth UAH 166.784 billion, the State Statistics Service has reported. According to the agency, in March 2018 compared to March 2017 the index of turnover of sold production grew by 10.9%, and by 11.1% compared with February 2018. Sales in mining industry in March 2018 compared with March 2017 grew by 2.25 (4.6% compared with February 2018) and in processing industry – by 12.9% (12.6%).
In the total volume of sales, the largest share accounted for processing industry (60.1%), the supply of electricity, gas, steam and air conditioning (25.1%), metallurgical production (18.4%), production of cast iron, steel and ferroalloys (14.3%), mining and quarrying (13.9%) and
As reported, in 2017 industrial products (goods, services) worth UAH 2.153 trillion were sold, which is 21.9% more than in 2016.

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