Business news from Ukraine

CHERNIHIV CAR PLANT WINS TENDER TO SUPPLY TEN TROLLEYBUSES WORTH UAH 39 MLN TO CITY

KYIV. Oct 18 (Interfax-Ukraine) – PJSC Chernihiv car plant, part of Etalon Corporation, has won a tender for the supply of ten new 12-meter trolleybuses to the city of Chernihiv, reducing the price for them over the three rounds of the auction from UAH 45 million to UAH 38.94 million.

According to the results of the auction held on the ProZorro portal, the second bidder, joint venture Yaniks (Lutsk, the official dealer of Belarus’ Belkommunmash), offered Belarusian trolleybuses for UAH 48 million (the starting price), reducing it to UAH 38.95 million.

The expected value of purchase was UAH 50 million.

Under the terms of the contract, trolleybuses must be delivered by December 23 of the current year.

Low-floor trolleybuses Etalon T12110 are designed to carry more than 100 passengers, including 31 seats, has a ladder for wheelchairs.

Chernihiv car plant produces buses of various modifications on the chassis of India’s TATA and Ashok Leyland, including school buses. In addition, the plant started manufacturing trolleybuses (in 2015 it produced 12 units), two similar trolleybuses are already operated in Chernihiv.

BELARUSIAN POTASH COMPANY OPENS SUBSIDIARY IN UKRAINE

MINSK/KYIV. Oct 18 (Interfax-Ukraine) – Belarusian Potash Company has expanded its presence in Ukraine, reads a posting on the company’s website.

In October it opened Agrorozkvit LLC, a trade subsidiary trade of Belarusian Potash Company.

“The decision to establish this company meets current market trends, and the main task of Agrorozkvit is the maximum coverage of the Ukrainian potash market, the company’s approach to ultimate consumers of potash fertilizers,” the report reads.

According to the report, Ukraine with its developed agriculture “is a significant market of mineral fertilizers, and convenient logistics allows to deliver products from Belarus to Ukraine in the shortest possible term.”

The new company is headed by Dmytro Kharytonchyk, one of the leading experts of Belarusian Potash Company in the field of sales, having “an extensive experience of export deliveries of potash fertilizers, in particular to Ukraine” and well familiar with the features and consumer preferences of this promising market.

“Belarusian Potash Company is taking another step forward, trying to meet the real needs of ultimate consumers of potassium, reach the level of farmers and agricultural holdings. The geographical proximity of Ukraine, great prospects of agricultural development in the country, good neighborly relations with Belarus create potential for an active consumption of Belarusian potash fertilizers,” the expert said.

POLSKIBUS CARRIER TO LAUNCH TWO ROUTES FROM POLAND THROUGH SEVEN UKRAINIAN CITIES

KYIV. Oct 18 (Interfax-Ukraine) – Poland’s PolskiBus.com carrier in cooperation with Ideal Travel would launch two new routes using which residents of 18 Polish towns would be able to go to Lviv and six other Ukrainian cities every day.

According to a posting on the carrier’s website, first trips will be made on October 21 and the tickets are available on www.polskibus.com.

At the first phase of cooperation the offers of PolskiBus.com will be expanded to two daily lines: U1 (Szczecin – Gorzow Wielkopolski – Pila – Bydgoszcz – Torun – Wloclawek – Plock – Warsaw – Radom – Lublin – Lviv – Ivano-Frankivsk – Chernivtsi) and U2 (Poznan – Leszno – Wroclaw – Opole – Katowice – Krakow – Tarnow – Rzeszow – Lviv – Ternopil – Vinnytsia – Khmelnyk – Kherson).

The trips will be serviced using buses of Ideal Travel and Ukrainian partner Fortuna Reisen. Most of buses would have air conditioners, Wi-Fi, WC and sockets.

PolskiBus.com operates on 18 routes in 26 Polish cities and towns.

Thanks to cooperation with partners PolskiBus.com has 28 additional lines offering trips to Amsterdam, Dusseldorf, Hamburg and Zurich.

DEZEGA HOLDING TO SUPPLY SELF-RESCUERS FOR IDRIS PROJECT IN QATAR

KYIV. Oct 18 (Interfax-Ukraine) – DEZEGA Holding Ukraine, the designer and producer of mine rescue equipment, has signed a contract with the largest international tunneling company Bouygues Construction to supply self-contained self-rescuers for workers of the Inner Doha Resewerage Implementation Strategy (IDRIS) project in Qatar.

The company said in a press release on Monday that IDRIS will use 60 minute self-contained self-rescuers certified in Europe. The certificate is approved in Qatar.

DEZEGA training self-rescuers will be used to train workers.

“We have managed to confirm the status of manufacturer with the best ratio between the price and quality of products in our segment and win the tender to supply the self-rescuers. The market of Qatar is new for us. In the future we are going to continue its development,” the press service said, citing Holding Development Director Yuriy Spivak.

The cost of the contract and other bidders in the tender are not disclosed.

The $3 billion IDRIS project envisages construction of over 45 km of ductwork, 70 km of side ducts and a pump station 70 meters deep. This is the largest sewage project in the world. The project was designed due to growth of population in Doha, the capital of Qatar and the city’s preparations to host World Cup 2022.

The implementation of the project will start in November 2016.

FERREXPO SEEKS TO PRODUCE 11.2-11.3 MLN TONNES OF PELLETS IN 2016

KYIV. Oct 18 (Interfax-Ukraine) – Iron ore producer Ferrexpo with assets in Ukraine seeks to produce at least 11.2-11.3 million tonnes of iron ore pellets in 2016, which is slightly less than in 2015. This is linked to repair works. The share of high-quality 65% Fe products would grow from 87% last year to 94%, Head of Investor Relations and Corporate Communications at Ferrexpo Ingrid McMahon has said.

“We hope that it would be more [than 11.2-11.3 million tonnes]. It is important for us that 94% is high-quality 65% Fe products,” she told reporters in Kyiv last week.

McMahon explained a small decrease compared to the results of the previous year by repair carried out in Q3 2016.

“We will try to catch in Q4 2016,” she said.

She said that current demand on the company’s products exceeds its possibilities.

According to the company’s presentation, demand on pellets could grow from 408 million tonnes in 2015 to 493 million tonnes in 2020, or 3.9-4% every year. McMahon said that in 2018 the situation on the market could become more volatile, as Brazil’s Samarco that produced 30 million tonnes of pellets a year and suspended operations after an incident in the tailing dump in November 2015 would return to the market. She expressed confidence that Ferrexpo would have good positions on the market thanks to high quality of its products and low cash cost.

McMahon said that thanks to it the company recently managed to increase the share of customers from Europe and Japan and started supplies to South Korea. However, the share of China of total supplies fell from 20-25% to 13%. She said that in 9M 2016 the share of customers from Central and Eastern Europe was 48%, Western Europe – 17%, Northeast Asia – 16% and Turkey where demand on 62% Fe pellets still recorded – 6%.

She said that in 2017 the company intends to invest at least $50 million in development.

Ferrexpo is interested in dredging works at the Yuzhny port announced by the Ukrainian Sea Port Authority as part of the implementation of the project to build new berths by TIS and Cargill.

She said that in the future if the markets are liberalized, the company could consider the possibility of buying own locomotives for its fleet of 2,252 wagons and return to river transport for delivering products using the Dnipro River, not only the Danube River.

POROSHENKO INVITES CHAIR OF DP WORLD SULTAN AHMED BIN SULAYEM TO JOIN NATIONAL INVESTMENT COUNCIL

KYIV. Oct 17 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko has held a meeting with Chairman of DP World Sultan Ahmed bin Sulayem.

Poroshenko emphasized that it was the right time and right place to invest in Ukraine and said that global business was interested in our state, the Ukrainian president press service reported.

He noted that the Ukrainian authorities were doing everything possible to encourage foreign investors. For this end, the National Investment Council under the president of Ukraine has been established.

The head of state invited Sultan Ahmed bin Sulayem to join the Council.

For his part, Sultan Ahmed bin Sulayem thanked for the invitation and said he was interested in the development of cooperation with Ukraine, which has huge transport resources and remarkable human potential. “We consider Ukraine as a state that will connect us with Europe. That is why we want to work here,” he said.

Poroshenko praised the signature of the memorandum between the Ministry of Infrastructure of Ukraine and DP World. This document provides for the immediate establishment of the joint expert group for the analysis of existing opportunities and mechanisms of investments in our state.

The head of state instructed the Ministry of Infrastructure of Ukraine to take this work under personal control and report on the progress of implementation of the project.