KYIV. Jan 26 (Interfax-Ukraine) – Ukrainian metallurgical enterprises in December 2016 increased steel production by 4.5% compared with December 2015, to 2.015 million tonnes, being the 10th place in the ranking among 66 countries, the world’s major manufacturers of these products, compiled by the World Steel Association (Worldsteel).
Growth in steel production in December was fixed in most countries from the top ten states, except for South Korea and Brazil.
The top ten steel makers in December looks as follows: China (67.22 million tonnes, a 3.2% rise), Japan (8.711 million tonnes, a 1.5% rise), India (8.397 million tonnes, 15% up), the United States (6.619 million tonnes, a rise of 11%), Russia (6.213 million tonnes, an 8% rise), South Korea (5.858 million tonnes, a 0.2% drop), Germany (3.23 million tonnes, 8.2% up), Turkey (2.838 million tonnes, 6.2% up), Brazil (2.149 million tonnes, 12.7% down), and Ukraine (2.015 million tonnes, 4.5% up).
In general, 66 countries in December 2016 produced 134.059 million tonnes of steel, which is 5.5% more than in December 2015.
In 2016 the top ten steel makers included China (808.37 million tonnes, an increase of 1.2%), Japan (104.772 million tonnes, a drop of 0.3%), India (95.618 million tonnes, an increase of 7.4%), the United States (78.619 million tonnes, a drop of 0.3%), Russia (70.8 million tonnes, a drop of 0.1%), South Korea (68.567 million tonnes, a drop of 1.6%), Germany (42.082 million tonnes, a drop of 1.4%), Turkey (33.163 million tonnes, an increase of 5.2%), Brazil (30.212 million tonnes, a drop of 9.2%), and Ukraine (24.221 million tonnes, an increase of 5.5%).
In general, the 66 countries produced 1.604 billion tonnes of steel in 2016, which was 0.7% up year-over-year.
KYIV. Jan 26 (Interfax-Ukraine) – Shipbuilding company Smart Maritime Group (SMG), part of Smart-holding, in 2016 increased production by 49% compared to 2015, to UAH 395 million, the press service of SMG has said.
According to the report, in 2016 Kherson Shipyard, part of SMG, provided the building of a SEA ANT multipurpose oil skimmer under the HM 440 project on the order of Yuzhny branch of the Ukrainian Sea Ports Authority. In addition, last year SMG repaired and modernized 46 vessels, among which was the Mykolaiv border patrol ship of the State Border Guard Service of Ukraine.
According to the report, now SMG continues to develop the capacity of mechanical engineering and metal working: in 2016 its machine building plants fulfilled contracts for a total of UAH 9 million. Among the main customers are Metinvest group of companies, Yugcement.
Smart Maritime Group sub-holding (SMG) of Smart-holding belonging to businessman Vadim Novinsky, created in 2009, includes Chornomorsky Shipbuilding Yard (Mykolaiv) and Kherson Shipyard.
In July 2016 the Economic Court of Kherson region declared Kherson Shipyard bankrupt and started liquidation procedures.
KYIV. Jan 26 (Interfax-Ukraine) – Ukrainian mining enterprises in 2016 significantly increased shipments of iron ore to Japan, Serbia, South Korea and Slovakia, while reducing shipments to China, Poland and Turkey, according to a press release from state enterprise Ukrpromzovnishekspertyza, with reference to analyst Dmytro Zheltiakov.
“Exports of Ukrainian iron ore in December 2016 fell by 22,000 tonnes, thus reaching 3.223 million tonnes. Since the beginning of 2016 a total of 39.2 million tonnes have been exported, which is 6.5 million tonnes less than in 2015,” the company press service said.
Zheltiakov said over the past year shipments to Japan (by 535,000 tonnes), Serbia (by 567,000 tonnes), South Korea (431,000 tonnes) and Slovakia (409,000 tonnes) rose most of all. The largest fall was recorded in exports to China (by 7.695 million tonnes), Poland (600,000 tonnes) and Turkey (633,000 tonnes).
As for the cost variables, in December prices of Ukrainian suppliers in foreign markets increased by 15-20%. According to the company experts, in January 2017 minor price fluctuations are likely to occur, following the stabilization of price indices in China. Prices in the domestic market of Ukraine, following the worldwide growing trend, should also show growth.
KYIV. Jan 25 (Interfax-Ukraine) – Kyiv City Council is considering a draft decision to introduce the e-system for pre-threshold procurement, the press service of Kyiv City Administration has reported.
“Despite legislative restrictions the city intends to carry out procurement for goods the cost of which exceeds UAH 3,000,” Head of the Kyiv Administration department Volodymyr Bondarenko said.
He said that in 2016 Kyiv conducted 47,120 tenders in the ProZorro e-procurement system for UAH 11.77 billion. The average decrease of the price by bidders was 15.78%.
“The city managed to save UAH 532 million thanks to transparency of procurement and creating competition,” he said.
Among the key customers for procurement at Kyiv City Administration via the e-procurement system in 2015 were the healthcare department with agencies and organizations under its management (38% of total procurement), the transport infrastructure department (9%) and the social policy department (7%).
HELSINKI. Jan 25 (Interfax-Ukraine) – Finland which spends five times less than Ukraine on heating its housing sector, will provide Kyiv with the technical solutions to improve energy efficiency, Ukrainian Deputy Prime Minister – Minister of Regional Development and Construction, Housing and Utilities Hennadiy Zubko told Interfax-Ukraine.
“We will work on the memorandum in two areas: the first is the development of renewable energy and the second area is the introduction of the best technical solutions to save energy,” he commented on the signing of the memorandum between Ukraine and Finland on cooperation in the areas of energy efficiency, renewable energy (‘green energy’).
Zubko clarified that these modern technical solutions will be used in the framework of the Energy Efficiency Fund, which is being created.
According to him, the two governments will establish two working groups, which in addition to technical solutions will also be engaged in the issues related to standards, which Ukraine needs to improve its energy efficiency. The first such working group will arrive in Ukraine already on February 7-8, the deputy prime minister said.
He recalled Ukraine and Finland established a very close relationship within the Nordic Environment Finance Corporation (NEFCO) program, which implements municipal projects in Ukraine on heating system modernization and energy efficiency, in particular, the insulation of schools, kindergartens and the modernization of public utilities. According to Zubko, the loan portfolio of NEFCO in Ukraine totals EUR 44 million, which are supported by EUR 16 million grant funds.
KYIV. Jan 25 (Interfax-Ukraine) – Kernel, a large Ukrainian agrarian group, is mulling opportunities of buying an oilseed crushing plant in Ukraine with an annual capacity of around 1 million tonnes of sunflower seeds and expanding its land bank by 200,000-250,000 ha, the founder and Board Chairman of Kernel Andriy Verevsky has said.
“We are studying the possibility of consolidating oilseed crushing facilities in Ukraine. We are interested in acquiring a medium-sized enterprise with an annual capacity of around 1 million tonnes of sunflower seeds. We assess the acquisition at some $200 million. At present we are far from the deal, as our assessments considerably differ the assessments of sellers. It is hard for me to predict when potential sellers will give their consent to sell their business. I think that it will take no more than a couple of years,” he said at the phone conferences with investors devoted to the possible placement of eurobonds.
Verevsky said that Kernel seeks to boost its land bank by 200,000-250,000 ha and assesses the investment at $150 million. He said that last year was favorable for farmers. Assessments of potential sellers today are high for Kernel.
Kernel is considering assets of Mriya agroholding among potential deals.
As for the possible placement of bonds, Verevsky said that the preliminary issue is $300 million. It could be expanded to $500 million. The company seeks to refinance current banking credits.
“The goal of the deal is to refinance bank credits and extend the term of paying on liabilities. Now we have renewable credit lines for three years. We would like to have the longer term,” he said.
If the above-mentioned plans are implemented, total investment in coming three years will be near $470 million, taking into account planned investment of some $120 million in Illichivsk seaport. If the company requires additional funds to expand working capital, it is able to finance it thanks to credit lines and operating flow, Verevsky said.
As reported, last week Kernel announced a roadshow for investors in the United States and Europe regarding a possible issue of eurobonds.
The eurobonds are to be issued in accordance with the 144A and Reg S rules, i.e. they will be available to U.S. investors with a maturity of five years and a fixed coupon rate.
Other details of the securities are not reported.
